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The adoption of EMV terminals has pressured attackers to migrate their fraud attempts to the card-not-present channel. This is a major driver to the increase in e-commerce fraud attacks – more than 30% over last year. Here’s how this fraud victimization has increased across the country: 16% in North Central states. 25% in Northeastern states. 32% in Southern states. 25% in Western states. Attackers are extremely creative, motivated, and often connected. Protect all points of connection with your customers to prevent e-commerce fraud with a comprehensive, multilayered approach. Where does your state rank?

Experian recently acquired a minority stake in Finicity, a leading financial data aggregator enabling innovation in the FinTech industry through its modern RESTful API and Finicity Aggregation Platform. Steve Smith—chairman, CEO and co-founder of Finicity—has a passion and experience in developing innovative and disruptive technology, products and services that leads to efficiency for markets and, ultimately, improvements for consumers. Here he shares his thoughts about disruptive technology in the lending space and its benefits to lenders and consumers. Q: Finicity has said its objective is to take a loan application approval from weeks to minutes using its technology. That sounds pretty great, but how is that possible? How does this play out behind the scenes? A: Well, we’re living in a world where we, as consumers, expect very user-friendly experiences and we expect things to happen at digital speeds. The loan process is no exception. To deliver the experience consumers are expecting requires us to leverage the technology trends of digitization, mobility and big data. Finicity plays a foundational role by leveraging thousands of digital connections across financial institutions to aggregate consumer-permissioned account data. Once we have this data, we’re able to deliver real-time insights into an individual's financial health. This financial health assessment includes income and assets, two critical components to the loan approval process. All that’s required is the borrower to permission use of the data. Once that’s done, we’re able to gather all appropriate data across multiple accounts, rapidly analyze it and send a verification report to the lender. No papers. No multiple requests. No questions on the validity of the data. All done in minutes, not weeks. Q: This is very disruptive technology. What are the benefits for lenders? Consumers? A: Well, as we discussed, one of the major benefits is the speed to a loan. Furthermore, this reduces cost for the lender by maximizing loan officer’s time, while also freeing up loan capital as they can move through loans more quickly with a higher quality assessment. Another benefit for lenders is reduced fraud. Our information on income and assets is coming from real-time bank validated information. This eliminates the possibility of altered data. For consumers, it’s a dramatically simplified process. No need to chase down multiple documents. There are virtually no second requests for information, which we often see in the process. And they’re always in control of their information. All in all, it’s a dramatically better experience for both the lender and the borrower. Q: What sets this solution apart from others in the market? A: A few things set Finicity apart in delivering the quality of insights required. First, we are an industry leader in the number of financial institutions we connect with, ensuring broader access for more customers. Second, 95 percent of our integrations provide access to formatted data, something that’s critical to credit decisioning solutions. In these cases, we’re not screen scraping. This enhances our ability to collect bank validated transactions; we provide the financial institution transaction ID. This provides assurance of data quality. Finally, is our ability to categorize and analyze the transactions. This allows us to identify income streams and assets. Through this process, we’re also able to flag unusual transactions, like large deposits, that may skew actual assets. Q: The future of financial technology is still evolving. What lies ahead? A: We’re very excited about the future of financial technology and the impact that aggregation will have. Whether it’s financial management, digital payments or credit decisioning, real-time data will improve the experiences and the outcomes. As we’re talking about lending, this is one of the spaces that could see significant disruption. Our ability to generate a richer view of an individual’s or organization’s financial health will more accurately determine their ability to repay a loan. This will be a great benefit for those that have thin file or no credit history. We see a world where suitability for a loan will be driven by their actual financial life independent of their use of credit. One of the largest markets in the US is millennials. However, for consumers under 30, two-thirds have subprime or non-prime credit scores and one-third of millennials don't have any credit history. This is just one group underserved because legacy models don’t leverage the full extent of data available. Q: Is there anything else you can tell us about Finicity and its role changing customer experiences across financial service? A: For us, it all comes down to one thing: enabling individuals and organizations to have the information and insights they need to make smarter financial decisions. The data is there. We’re helping to unlock the potential of that data by working with innovative partners like Experian. To learn more about Experian and Finicity's account aggregation solutions, visit www.experian.com/finicity

Legitimate address discrepancies are common, which surprises most people. And handling every address discrepancy as a high fraud risk is operationally expensive and inhibits the customer experience. You can avoid this type of fraud by employing these best practices: Use a distinct Know Your Customer and underlying Customer Identification Program process. Avoid verifications based on self-reported data. Maintain hotlist addresses. Fraud always will find the path of least resistance, and organized criminals will test you daily to isolate the weakest link. Be sure to regularly revisit your own policies and procedures for handling this type of fraud. Address manipulation fraud  

Fraud and address manipulation (Part 1) Identifying an address as incorrect seems simple enough. But in reality, address mismatches between an application and credit bureau data aren’t uncommon. Here are several legitimate reasons why this may occur: Change of residence. Credit bureau’s unique logic for determining which address is the "best." New/Emerging consumers often have fluctuating address data. Issuers that employ risk-based approaches allowing incorrect addresses to pass and those that use self-reported data for verification face the highest level of risk for this type of fraud. Next week, we’ll let you know how you can avoid these types of losses. Or you can get ahead and read our latest paper. Address manipulation fraud>

Divorce often affects financial health negatively. It’s expensive – often causing nearly $20,000 in losses.  A recent Experian survey found: 34% say their divorce put them in financial ruin. 19% percent say things were so bad they filed for bankruptcy. 39% report they’ll never marry again because of the financial loss of a divorce. Lenders can provide support to loyal customers by providing personalized credit education and create a new revenue stream for your company. Learn more>

A recent Experian study found that the amount of time it’s taking for automotive loans opened in Q4 2015 to become delinquent is actually similar to the pace in 2008. When looking at the 60+ DPD rate across all risk levels, the delinquency rate for accounts opened in Q4 2015 reached 0.50% within 6 months, compared with 0.51% for accounts opened in Q4 2008. Lenders can design more effective strategies by using analytics to gain insight into the latest trends and target the right customers. Video: Auto Acquisition Strategies>

Reactivation campaigns make economic sense. They build on a brand’s previous investments, targeting customers who already are aware of and previously have engaged with your brand. Use these 4 steps to build a successful reactivation framework: 1. Analyze subscriber data to identify reactivation segments to target. 2. Identify subscriber activity to divide customers into at least 3 unique segments. 3. Develop messaging strategies for each segment. 4. Integrate or suppress inactive subscribers based on whether they re-engage. Reactivation campaigns can deliver significant incremental revenue and position inactive subscribers for further engagement in future campaigns. Download report>

Experian's fraud and identity platform, CrossCore™ won New Security Product or Service and Security Product Management / Development Team of the Year awards at the 13th Annual Info Security Products Guide’s 2017 Global Excellence Awards®.

We’re excited to announce Family Account Management: a new feature available for our partners that makes it easy for their subscribers to extend identity protection services to family and friends. Family Account Management allows our partners to offer quick and easy enrollment, enabling new subscribers to opt in to a family plan by inputting family or friends’ email addresses within their portal. Subscribers can invite anyone of the age of 18 to join. Every family has different security needs and preferences. This feature offers plan options that can be configured to match the primary subscriber’s current enrolled services, or customized to include a set of services that best suits each family’s needs. The Consumer Sentinel Network, a division of the Federal Trade Commission, reported over 1.2 million fraud-related complaints in 2015. With identity fraud on the rise, we need to be more vigilant than ever before and take steps to improve our own security and the security of our loved ones. We all have unique identity elements, including birthday, email address, and Social Security number, and monitoring one person’s identity elements won’t minimize risk for other family members. That’s why Family Account Management is so important, allowing subscribers to extend coverage for what matters most – family. “Families are more connected than ever before, but with more ways to stay connected, there are new threats putting families at risk of identity theft,” said Joe Ross, Experian President and Co-Founder. “With Family Account Management, businesses can provide their subscribers with an easy and convenient way to extend identity protection services to their loved ones.” Visit our website for more information on identity protection products you can offer your customers and stay up to date with all Experian news on LinkedIn.

A recent analysis revealed a 9-point negative shift in the average VantageScore® credit score for personal loan originations from Q3 to Q4 of 2016. Additional insights into the personal loan market include: 67% of those who opened a personal installment loan had a revolving trade with a balance. 5% of consumers who close a personal loan open another within a few months of the original loan closure. 68% of consumers who open a new personal loan shortly after closing another one do so with the same company. Lenders must dig deeper to keep their loan volumes up in today’s competitive marketplace. Using a propensity score and attributes, as well as tools to learn more about ability-to-pay metrics and offer alignment, can improve your organization’s marketing and retention strategies. Learn more>

Good job, check. Shared interests, check. Chemistry, check. He seems like a perfect 10. Both of you enjoy your first date and while getting ready for the second, you dare to imagine that turning into another and another, and possibly happily ever after. Then one decidedly unromantic question comes to mind: What is his credit score? Reviewing a potential partner’s credit score and report is important to many singles who are looking for lasting love. According to Bankrate.com, 42 percent of Millennials said that knowing someone’s credit score would affect their desire to date them, slightly more than 40 percent of Gen Xers and 41 percent of Baby Boomers. They may be on to something. Research shows that knowing someone’s credit history and sense of financial responsibility could save people time – and potential heartache. A UCLA study about money and love shows a very strong link between high credit scores and long-lasting relationships. People with drastically different credit scores may experience more financial stress down the road, placing a burden on a relationship. An Experian report reveals 60 percent of people believe it’s important for their future spouse to have a good credit score, and 25 percent of people from the UCLA study were willing to leave a partner with poor credit before marriage so they aren’t held back. While that three-digit number doesn't tell a person’s whole financial story, it can reveal financial habits that could impact your life. Banks are wary of making loans to borrowers with tarnished scores, typically 660 and below. A low score could quash dreams of buying a home, and result in steep interest rates, up to 29 percent, for credit cards, car financing and other unsecured loans. A mid-range credit score can also hurt an application for an apartment and drive up the cost of mobile phone plans and auto insurance. Eight states have passed laws limiting employers’ ability to use credit checks when assessing job candidates, yet 13 percent of employers surveyed by the Society of Human Resource Management performed credit checks on all job applicants. Talking spending styles and revealing credit scores sooner rather than later in a relationship isn’t necessarily comfortable. But it may help you decide whether you have compatible financial outlooks and practices.

The consumer economy has evolved dramatically over the past few years — in large part due to technology and access to large amounts of data. Credit data, especially, can be a powerful asset for financial institutions in this new environment. More than 88 million U.S. consumers use their smartphone to do some form of banking. 67% of consumers made purchases across multiple channels in the last six months. With the help of data scientists, financial institutions can build models that crunch huge volumes of data and append their own customer data to drive portfolio management, customer acquisition and collections decisions across digital and mobile channels. Learn more>

Big changes for the new year 2017 is expected to bring some big changes. But what do those changes mean for the financial services space? Here are 3 trends and twists Experian expects to occur over the next 12 months: Trump and the Republican-controlled Congress will move forward with a deregulatory agenda. Recognizing and scoring more previously invisible consumers through alternative data sources will be emphasized. Personalized credit offers delivered via multiple digital channels in a sequenced, trackable manner. What are your predictions for 2017? Only time will tell, but we’re certain that regulations and advancements in digital will be huuuge. >>More 2017 trends

The market is inevitably changing, and while batch and daily alerts are still effective in tackling client and consumer challenges, you are probably seeing more real-time alerts. Perhaps you were at the auto dealership applying for a car loan and you got an instant alert on your mobile app revealing there was an inquiry pulled on your credit report.  Or maybe you applied for a credit card online and instead of waiting for weeks to see if you got approved, you receive notification on the spot. It’s official. We live in a world where we want immediate and instant feedback, communication, and decisions. From a client’s perspective, this means getting a credit-event alert on a customer now vs. 24 hours later. Delays can sometimes mean the difference of losing or retaining a customer. In a recent Experian survey, findings revealed consumers expect to be notified of changes to their credit profile as they occur in real time. In fact, 90 percent of Experian Members said they place a “high value on real-time alerts.” To meet these consumer expectations, clients can consider implementing a trigger solution to offer real-time notifications on inquiries, security alerts and consumer disputes. These triggering events are pushed in real-time as opposed to a 24- to 48-hour turnaround when using standard daily triggers. What are inquiry and security alert triggers? Inquiry triggers cover 13 different industries and also fraud, theft, and active-duty military alerts. They are designed specifically for financial institutions that wish to monitor their existing customer base for account management, and for consumers wanting immediate awareness, education, and protection of their credit. How do real-time triggers work in the consumer dispute process? Dispute updates can be pushed out to the consumer in real-time as opposed to the standard dispute process that takes up to 30 days to receive an update. These triggers also include freeze, thaw and lift alerts pushed in real-time as opposed to the typical 24- to 48-hour turnaround when using standard daily triggers. These alerts are designed specifically for consumers wanting immediate awareness, education, and protection of their credit. Other than the speed of delivery, are there any other differences between daily vs. real-time triggers? Instead of having the files run nightly with the trigger report being sent to the client every morning through a STS delivery method, the real-time events are pushed via Cloud or STS delivery method.  Clients can retrieve these events at their own pace. Implementation time takes around two weeks. Are there additional opportunities to utilize real-time triggers? In addition to real-time inquiry alerts designed for companies to monitor their existing customer base for retention purposes, Experian also offers real-time inquiry alerts for prospecting and marketing purposes. This means financial institutions can identify which consumers are shopping for new credit in real-time.  As a result, immediate firm offers of credit or cross-sell offers could be sent to consumers before it’s too late.

As we enter 2017, it’s no surprise people are buying and selling online and using their mobile devices more than ever. At the close of November, Adobe released its online shopping data from Black Friday, Cyber Monday, and the overall holiday season. According to the data, the major November holiday shopping season was driving close to $40 billion in online and mobile revenue alone — a 7.4% increase year-over-year! Every year, we see tremendous growth in spending through online and mobile channels. Interestingly, this pattern is not just indicative of consumer spending and overall market confidence. The consumer pattern also illustrates a clear change in communication preferences — with the ever-present shift toward digital. In general, consumers are interacting more and more through both online and mobile channels for all of their personal needs, including banking and financial services; and the lending community is anxious to continue connecting to consumers where they need them most. No longer is digital communication the “cool thing to do,” but rather it is essential. While Experian’s lending customers still find tremendous success in direct mail prospecting, many financial institutions are preparing to implement an enhanced acquisition strategy in 2017. This strategy includes multi-channel prospecting initiatives to present consumers with preapproved credit offers. In addition to direct mail, our customers are evaluating digital channels such as email, mobile, and other online channels to improve the overall consumer experience and responsiveness. In the latest Digital Banking Report, published in July 2016, email is the top channel financial marketers are turning to for cross-channel marketing after the initial onboarding process (as illustrated in chart 49), but you can see social media and retargeting are rising in the ranks. In Sept., 2016, Experian was named one of the top 100 most innovative companies for a third year by Forbes magazine. A key part of that success was driven by investments in Experian’s Data Lab and Experian Marketing Service’s Audience Engine, which is an audience management platform that changes the way the advertising industry buys and measures media. We are focused on meeting our customers and the consumer where they need us most. Bottom line? As you refine your goals for 2017, the financial services sector should dig deeper when making connections. They must reach consumers where they want to connect – and that means a successful credit marketing strategy will be one that includes both direct mail and digital communications. A new year is the perfect time to re-evaluate those same-old, same-old marketing and acquisition tactics. We're not saying you need to abandon direct mail, but it is certainly time for lenders to complement their direct mail efforts with a savvy digital plan as well. Resolve to do it better in 2017.