Financial Services

With the rise of digital interactions, identity fraud has become an unassuming threat that impacts individuals, businesses, and institutions worldwide. According to the Federal Trade Commission (FTC), 5.4 million consumer reports regarding fraud and consumer protection were filed in 2023. Identity fraud, which is characterized as when an individual's personal information is stolen and used without their consent for fraudulent purposes, has devastating consequences for consumers, including financial losses, damaged credit scores, legal issues, and emotional distress. Financial institutions face damaging consequences beyond financial losses, including reputational damage, operational disruption, and regulatory scrutiny. As technology advances, so do fraudsters' tactics, making it increasingly challenging to detect and prevent identity-related crimes. So, what are financial institutions to do? Industry-leading institutions apply a layered approach to solving fraud that starts with a fraud risk assessment. What is a fraud risk assessment? When opening a new account, banks typically conduct a fraud risk assessment to verify the identity of the individual or entity applying for the account and to assess the likelihood of fraudulent activity. Banks also assess the applicant's credit history, financial background, and transaction patterns to identify red flags or suspicious activity. Advanced fraud detection tools and technologies are employed to monitor account opening activities in real-time and detect signs of fraudulent behavior. This assessment is crucial for ensuring compliance with regulatory requirements, mitigating the risk of financial loss, and safeguarding against identity theft. Understanding the importance of fraud risk assessments A fraud risk assessment is crucial for banks during account opening as it helps verify the identity of applicants and mitigate the risk of fraudulent activity. By assessing the likelihood and potential impact of identity fraud, banks can implement measures to protect customers' assets and protect against losses in their portfolio. Additionally, conducting thorough risk assessments enables banks to comply with regulatory requirements, which mandate the verification of customer identities to prevent money laundering and terrorist financing. By adhering to these regulations and implementing effective fraud detection measures, banks can enhance trust and confidence among customers, regulators, and stakeholders, reinforcing the integrity and stability of the financial system. 10 tools to consider when building an effective fraud risk assessment Several key factors should be carefully considered in an identity fraud risk assessment to ensure thorough evaluation and effective mitigation of identity fraud risks. Financial institutions should consider emerging threats and trends such as synthetic identity fraud, account takeover attacks, and social engineering scams when conducting a risk assessment. By staying abreast of evolving tactics used by fraudsters, organizations can proactively adapt their fraud prevention strategies and controls. Here are 10 tools that can help catch red flags for fraud prevention: Identity verification: Identity verification is the first line of defense against identity theft, account takeover, and other fraudulent activities. By verifying the identities of individuals before granting access to services or accounts, organizations can ensure that only legitimate users are granted access. Effective identity verification methods, such as biometric authentication, document verification, and knowledge-based authentication, help mitigate the risk of unauthorized access and fraudulent transactions. Implementing robust identity verification measures protects organizations from financial losses and reputational damage and enhances trust and confidence among customers and stakeholders. Device intelligence: Device intelligence provides insights into the devices used in online transactions, enabling organizations to identify and mitigate fraudulent activities. Organizations can detect suspicious behavior indicative of fraudulent activity by analyzing device-related data such as IP addresses, geolocation, device fingerprints, and behavioral patterns. Device intelligence allows organizations to differentiate between legitimate users and fraudsters, enabling them to implement appropriate security measures, such as device authentication or transaction monitoring. Phone data: Phone and Mobile Network Operator (MNO) data offers valuable insights into the mobile devices and phone numbers used in transactions. By analyzing MNO data such as subscriber information, call records, and location data, organizations can verify the authenticity of users and detect suspicious activities. MNO data enables organizations to confirm the legitimacy of phone numbers, detect SIM swapping or account takeover attempts, and identify fraudulent transactions. Leveraging MNO data allows organizations to strengthen their fraud prevention measures, enhance customer authentication processes, and effectively mitigate the risk of fraudulent activities in an increasingly mobile-driven environment. Email attributes: Email addresses serve as a primary identifier and communication channel for users in digital transactions. Organizations can authenticate user identities, confirm account ownership, and detect suspicious activities such as phishing attempts or identity theft by verifying email addresses. Analyzing email addresses enables organizations to identify patterns of fraudulent behavior, block unauthorized access attempts, and enhance security measures. Furthermore, email address validation helps prevent fraudulent transactions, safeguard sensitive information, and protect against financial losses and reputational damage. Leveraging email addresses as part of fraud prevention strategies enhances trustworthiness in digital interactions. Address verification: Address verification provides essential information for authenticating user identities and detecting suspicious activities. By verifying addresses, organizations can confirm the legitimacy of user accounts, prevent identity theft, and detect fraudulent transactions. Address validation enables organizations to ensure that the provided address matches the user's identity and reduces the risk of fraudulent activities such as account takeover or shipping fraud. Behavioral analytics: Behavioral analytics enables organizations to detect anomalies and patterns indicative of fraudulent activity. By analyzing user behavior, such as transaction history, navigation patterns, and interaction frequency, organizations can identify deviations from normal behavior and flag suspicious activities for further investigation. Behavioral analytics allows organizations to create profiles of typical user behavior and detect deviations that may signal fraud, such as unusual login times or transaction amounts. Consortia: Consortia facilitate collaboration and information sharing among organizations to combat fraudulent activities collectively. By joining forces through consortia, organizations can leverage shared data, insights, and resources to more effectively identify emerging fraud trends, patterns, and threats. Consortia enables participating organizations to benefit from a broader and more comprehensive view of fraudulent activities, enhancing their ability to detect and prevent fraud. Risk engines: Risk engines enable real-time analysis of transaction data and user behavior to detect and mitigate fraudulent activities. By leveraging advanced algorithms and machine learning techniques, risk engines assess the risk associated with each transaction and user interaction, flagging suspicious activities for further investigation or intervention. Risk engines help organizations identify anomalies, patterns, and trends indicative of fraudulent behavior, allowing for timely detection and prevention of fraud. Additionally, risk engines can adapt and evolve over time to stay ahead of emerging threats, enhancing their effectiveness in mitigating fraud. Orchestration streamlines and coordinates the various components of a fraud detection and prevention strategy. By orchestrating different fraud prevention tools, technologies, and processes, organizations can optimize their efforts to combat fraud effectively. Orchestration allows for seamless integration and automation of workflows, enabling real-time data analysis and rapid response to emerging threats. Step-up authentication: Step-up authentication provides an additional layer of security to verify users' identities during high-risk transactions or suspicious activities. By requiring users to provide additional credentials or undergo further authentication steps, such as biometric verification or one-time passcodes, organizations can mitigate the risk of unauthorized access and fraudulent transactions. Step-up authentication allows organizations to dynamically adjust security measures based on the perceived risk level, ensuring that stronger authentication methods are employed when necessary. By layering these tools effectively businesses remove gaps that fraudsters would typically exploit. Learn more

Four capabilities to consider for improved coverage and customer experience. Identity verification during account opening is the foundation for building trust between consumers and businesses. Consumers expect a seamless and convenient experience, and with the ease and optionality of online banking, are willing to look for alternatives that offer less friction. According to Experian research, 92% of consumers feel it's important for the businesses they deal with online to identify or recognize them on a repeated basis accurately, but only 16% have high confidence that this is happening. The disconnect between consumers’ expectations for online identity verification and the digital experiences they encounter is leading to reduced satisfaction and increased abandonment during new account opening processes. According to recent research by Experian, 38% of consumers surveyed considered ending a new account opening mid-way through the process due to poor experience. In addition, the same research found that nearly one-fifth of consumers had moved their business elsewhere because of this. Amidst the quest for convenience lies a pressing concern: ensuring the integrity of accounts being opened and protecting against fraud. Businesses continue to experience increasing fraud losses, Juniper Research forecasts that merchant losses from online payment fraud will exceed $362 billion globally between 2023 and 2028, with losses of $91 billion alone in 2028. Identity verification serves as the first line of defense in protecting both financial institutions and consumers. By verifying the identities of individuals before granting them access to services, businesses can mitigate the risk of identity theft, account takeover, and other forms of fraud. Four capabilities to consider when building out an identity verification strategy Personally Identifiable Information (PII) dataComparing consumer input data to a comprehensive data set helps effectively validate the consumer without disrupting customer experience. Details like name, address, date of birth, and social security number provide valuable identity information to verify identities quickly and accurately. Identity graphUsing an identity graph leveraging advanced analytics and data linking techniques helps prevent synthetic IDs from getting through. By mapping relationships between identity attributes, you can easily identify patterns and connections within the data and detect anomalies or inaccuracies in the information provided. Alternative data“Thin file” consumers are often rejected due to a lack of traditional data. Using alternative data like phone ownership and email data helps not only verify that the identity is real but also improves coverage, so you are not rejecting good customers. Document verificationHaving a document verification provider that seamlessly integrates into your identity verification workflow is essential for robust identity verification. Validating good users early in the account opening process helps keep fraudsters out so good users are not subject to stringent identity checks later on during onboarding. Next steps A strong identity verification process builds trust by demonstrating a commitment to protecting and safeguarding consumer data. A proper identity verification workflow would minimize the impact of friction for consumers and help organizations manage fraud and regulatory compliance by examining specific business needs on a case-by-case basis. Identifying the right mix of capabilities through analytics and feedback while utilizing the best data reduces the cost of manual verification and helps onboard good customers faster. Learn more Research conducted in March 2024 by Experian in North America

Whether consumers are shopping for new credit or experiencing financial stress, monitoring their behavior is crucial — even more so in an ever-changing economy. Our latest infographic explores economic trends impacting consumers’ financial behaviors and how Experian’s Risk and Retention TriggersSM enable lenders to detect early signs of risk or churn. Key highlights include: Credit card balances climbed to $1.17 trillion in Q3 2024. As prices of goods and services remain elevated, consumers may continue to experience financial stress, potentially leading to higher delinquency rates. Increasing customer retention rates by 5% can boost profits by 25% to 95%. View the infographic to learn how Risk and Retention Triggers can help you advance your portfolio management strategy. Access infographic

In today’s digital landscape, where data breaches and cyberattacks are rampant, businesses face increasing security challenges. One of the most prevalent threats is credential stuffing—a cyberattack in which malicious actors use stolen username and password combinations to gain unauthorized access to user accounts. As more personal and financial data gets leaked or sold on the dark web, these attacks become more sophisticated, and the consequences for businesses and consumers alike can be devastating.But there are ways to proactively fight credential stuffing attacks and protect your organization and customers. Solutions like our identity protection services and behavioral analytics capabilities powered by NeuroID, a part of Experian, are helping businesses prevent fraud and ensure a safer user experience. What is credential stuffing? Credential stuffing is based on the simple premise that many people reuse the same login credentials across multiple sites and platforms. Once cybercriminals can access a data breach, they can try these stolen usernames and passwords across many other sites, hoping that users have reused the same credentials elsewhere. This form of attack is highly automated, leveraging botnets to test vast numbers of combinations in a short amount of time. If an attacker succeeds, they can steal sensitive information, access financial accounts, or carry out fraudulent activities. While these attacks are not new, they have become more effective with the proliferation of stolen data from breaches and the increased use of automated tools. Traditional security methods—such as requiring complex passwords or multi-factor authentication (MFA)—are useful but not enough to prevent credential stuffing fully. How we can help protect against credential stuffing We offer comprehensive fraud prevention tools and multi-factor authentication solutions to help you identify and mitigate credential stuffing threats. We use advanced identity verification and fraud detection technology to help businesses assess and authenticate user identities in real-time. Our platform integrates with existing authentication and risk management solutions to provide layered protection against credential stuffing, phishing attacks, and other forms of identity-based fraud. Another key element in our offering is behavioral analytics, which goes beyond traditional methods of fraud detection by focusing on users' data entry patterns and interactions. NeuroID and Experian partner to combat credential stuffing We recently acquired NeuroID, a company specializing in behavioral analytics for fraud detection, to take the Experian digital identity and fraud platform to the next level.  Advanced behavioral analytics is a game-changer for preventing credential-stuffing attacks. While biometrics track characteristics, behavioral analytics track distinct actions. For example, with behavioral analytics, every time a person inputs information, clicks in a box, edits a field, and even hovers over something before clicking on it or adding the information to it, those actions are tracked. However, unlike biometrics, this data isn’t used to connect to a single identity. Instead, it’s information businesses can use to learn more about the experience and the intentions of someone on the site. NeuroID and Experian’s paired fraud detection capabilities offer several distinct advantages in preventing credential stuffing attacks: Real-time threat detection: Analyze thousands of behavioral signals in real-time to detect user behavior that suggests bots, fraud rings, credential stuffing attempts, or any number of other cybercriminal attack strategies.  Fraud risk scoring: Based on behavioral patterns, assign a fraud risk score to each user session. High-risk sessions can trigger additional authentication steps, such as CAPTCHA or step-up authentication, helping to stop credential stuffing before it occurs. Invisible to the user: Unlike traditional authentication methods, behavioral analytics work seamlessly in the background. Users do not need to take extra steps—such as answering additional security questions or entering one-time passwords. Adaptive and self-learning: As users interact with your website or app, our system continuously adapts to their unique behavior patterns. Over time, the system becomes even more effective at distinguishing between legitimate and malicious users without collecting any personally identifiable information (PII). Why behavioral data is critical in combating credential stuffing Credential stuffing attacks rely on the ability to mimic legitimate login attempts using stolen credentials. Behavioral analytics, however, can spot the subtle differences between human and bot behavior, even if the attacker has the correct credentials. By integrating behavioral analytics, you can: Prevent automated attacks: Bots often interact with websites in unnatural ways—speeding through form fields, using erratic mouse movements, or attempting logins from unusual or spoofed geographic locations. Behavioral analytics can flag these behaviors before an account is compromised. Detect account takeovers early: If a legitimate user’s account is taken over, behavioral analytics can detect the change in interactions. By monitoring behavior, businesses can detect account takeover attempts much earlier than traditional methods. Lower false positive rates: Traditional fraud prevention tools often rely on rigid rule-based systems that can block legitimate users, especially if their login patterns slightly differ from the norm. On the other hand, behavioral analytics analyzes a user's real-time behavioral data without relying on traditional static data such as passwords or personal information. This minimizes unnecessary flags on legitimate customers (while still detecting suspicious activity). Improve customer experience: Since behavioral analytics is invisible to users and requires no extra friction (like answering security questions), the login and transaction verification process is much smoother. Customers are not inconvenienced, and businesses can reduce the risk of fraud without annoying their users. The future of credential stuffing prevention Credential stuffing is a growing threat in today’s interconnected world, but with the right solutions, businesses can significantly reduce the risk of these attacks. By integrating our fraud prevention technologies and behavioral analytics capabilities, you can stay ahead of the curve in securing user identities and preventing unauthorized access. The key benefits of combining traditional identity verification methods with behavioral analytics are higher detection rates, reduced friction for legitimate users, and an enhanced user experience overall. In an era of increasingly sophisticated cybercrime, using data-driven behavioral insights to detect user riskiness is no longer just a luxury—it’s a necessity. Learn more Watch webinar

The credit card market is rapidly evolving, driven by technological advancements, economic volatility, and changing consumer behaviors. Our new 2025 State of Credit Card Report provides an in-depth analysis of the credit card landscape and strategy considerations for financial institutions. Findings include: Credit card debt reached an all-time high of $1.17 trillion in Q3 2024. About 19 million U.S. households were considered underbanked in 2023. Bot-led fraud attacks doubled from January to June 2024. Read the full report for critical insights and strategies to navigate a shifting market. Access report

Today’s fast-paced, digital-first hiring environment calls for a more comprehensive approach to pre-employment screening. With growing pressure on employers and HR teams to make swift, accurate, and secure hiring decisions, having access to the tools and data to enhance efficiency and security is more important than ever. By evolving beyond traditional screening methods, background screeners can better meet these needs and deliver added value to their clients.  Fraud remains a significant challenge. In fact, fraud scams resulted in a staggering $485.6 billion in losses in 20231 — and hiring teams aren’t exempt from these risks. Fraudulent resumes, synthetic identities, and the risk of non-compliance with evolving regulations create a challenging landscape for pre-employment verifications. What if there was a way to make smarter, faster, and more secure hiring decisions? This article explores how background screeners can optimize pre-employment verification processes, reduce fraud risks, and ensure compliance — all while delivering a positive candidate experience. What is pre-employment screening? Employers conduct pre-employment screenings to thoroughly evaluate job candidates and make informed hiring decisions. It’s designed to verify key details about candidates, such as their identity, employment history, and references among others to assess their suitability for a role and ensure compliance with industry regulations. Enhancing traditional screening processes For decades, pre-employment background checks have been a cornerstone of the hiring process. While effective, many traditional methods face challenges in keeping up with the evolving demands of modern hiring. Delays in hiring: Background checks can oftentimes rely on manual processes, which could extend timelines leading to delays of days or even weeks. This not only slows down hiring cycles but can make it harder for employers to compete for top talent in a tight labor market. Errors and inaccuracies: Human errors, incomplete data, and inconsistencies across systems can lead to missed insights or red flags. Fraudulent activity: As hiring becomes increasingly digital, identity theft and synthetic identities present growing challenges to verifying candidate-provided data.  Regulatory challenges: With regulations like the Equal Employment Opportunity Commission (EEOC) and Fair Credit Reporting Act (FCRA), companies must navigate complex compliance requirements to avoid legal and financial repercussions. 1 in 3 HR professionals report losing top candidates due to slow pre-employment screening processes.2 These challenges highlight the opportunity to build on existing screening practices with tools that enhance speed, provide actionable insights and prevent fraud. Adapting to the evolving fraud landscape Employment fraud is becoming increasingly sophisticated, fueled by trends like the rise of remote work and digital applications. In fact, the employment sector accounted for 45% of all false document submissions in 2023, making it the most targeted industry for fraud.3 From fake references and degrees to synthetic identities created using stolen personal information, the risks are higher than ever. Synthetic identity fraud: This form of fraud — where fake identities are created by combining real and fabricated data — makes up more than 80% of all new account fraud.4 Fake credentials: Many candidates falsify qualifications or work histories to enhance their chances of securing a role. Compliance risks: Failure to verify candidate information accurately can result in legal penalties, brand reputation damage, or internal security breaches. Modernizing pre-employment screening The good news? Experian offers advanced solutions that complement existing screening processes, empowering background screeners to deliver more efficient, secure and reliable results for their clients looking to higher faster, and with greater confidence.  Gain a more holistic view of a candidate’s risk profile: Experian’s nationwide database contains files on more than 245 million credit-active consumers, providing the most current, accurate, and comprehensive information available in the industry. Conduct real-time identity verification: Leverage a range of identity verification solutions to authenticate and verify a candidate’s identity by accessing a breadth set of non-credit and credit data sources to create a robust social footprint that defines each consumer as unique individuals. Integrate advanced fraud detection: Powered by purpose-built analytics and machine learning algorithms, Experian’s fraud detection tools can detect synthetic identities, inconsistencies, and other red flags while ensuring a seamless candidate experience. Enhance compliance efforts: Experian’s solutions are designed to help businesses navigate complex compliance requirements with ease. Fraud prevention playbook in preemployment Uncover essential strategies for fraud prevention and identity verification in employment screening. Download now The pre-employment screening landscape is evolving, and staying ahead requires tools that enhance the efficiency and effectiveness of your processes. Experian’s advanced solutions are designed to complement your existing screening services, helping you reduce fraud risks, maintain compliant, and deliver data-driven insights that empower smarter hiring decisions. Get started today Ready to transform your pre-employment verification process with fraud mitigation and identity verification solutions? Explore our innovative solutions today. Learn more 1 Nasdaq finds scams led to $486 billion in losses in 2023, 2024. 2 Research reveals Candidates’ Frustrations with Hiring Process, 2024. 3 Employment Identity Fraud: Do You Know Who You’re Hiring, 2024. 4 Report: Synthetic identity fraud is growing, 2024.

Generative AI (GenAI) is transforming the financial services industry, driving innovation, efficiency and cost savings across various domains. By integrating GenAI into their operations, financial institutions can better respond to rapidly changing environments. GenAI is reshaping financial services from customer engagement to compliance, leading to streamlined operations and enhanced decision-making. The strategic role of GenAI in financial services Adopting GenAI in financial services is now a strategic imperative. A 2024 McKinsey report (The State of AI in 2024) notes more than a 10% revenue increase for companies using GenAI. As institutions strive to stay competitive, GenAI provides powerful tools to enhance customer experiences, optimize operations, accelerate regulatory compliance, and expedite coding and software development. Key areas where GenAI is making an impact Enhanced customer engagement Financial institutions use GenAI to offer personalized products and services. By analyzing real-time customer data, GenAI enables tailored recommendations, boosting satisfaction and retention. Streamlining and optimizing operations GenAI automates tasks like data entry and transaction monitoring, freeing up resources for strategic activities. This accelerates workflows and reduces errors. Further, GenAI-driven efficiency directly cuts costs. By automating processes and optimizing resources, institutions can lower overhead and invest more in innovation. Deloitte’s Q2 2024 study found AI automation reduced processing times by up to 60% and operational costs by 25%. Accelerating regulatory compliance GenAI simplifies compliance by automating data collection, analysis and reporting. This ensures regulatory adherence while minimizing risks and penalties. According to a 2024 Thomson Reuters survey, AI-driven compliance reduced reporting times by 40% and costs by 15%. Developer coding support for efficiencies GenAI is an invaluable tool for programmers. It aids in code generation, task automation and debugging, boosting development speed and allowing focus on innovation. Gartner’s 2024 research highlights a 30% improvement in coding efficiency and a 25% reduction in development timeframes due to GenAI. Accelerating credit analytics with Experian Assistant Within the credit risk management space, GenAI offers a powerful solution that addresses some known pain points. These relate to mining vast amounts of data for insight generation and coding support for attribute selection and creation, model development, and expedited deployment. Experian Assistant is a game-changer in modernizing analytics workflows across the data science lifecycle. Integrated into the Experian Ascend™ platform, it’s specifically designed for analytics and data science teams to tackle the challenges of data analysis, model deployment and operational efficiency head-on. Capabilities and skills of Experian Assistant Data tutor: Offers comprehensive insights into Experian’s data assets, enabling users to make informed decisions and optimize workflows Analytics expert: Provides tailored recommendations for various use cases, helping users identify the most predictive metrics and enhance model accuracy Code advisor (data prep): Automatically generates code for tasks like data merging and sampling, streamlining the data preparation process Code advisor (analysis): Generates code for risk analytics and modeling tasks, including scorecard development and regulatory analyses Tech specialist: Facilitates model deployment and documentation, minimizing delays and ensuring a seamless transition from development to production Driving more-informed decisions Adopting GenAI will be key to maintaining competitiveness as the financial services industry evolves. With projections showing significant growth in GenAI investments by 2025, the potential for enhanced efficiencies, streamlined operations and cost savings is immense. Experian Assistant is at the forefront of this transformation, addressing the bottlenecks that slow down analytical processes and enabling financial institutions to move faster, more informed and with greater precision. By integrating the capabilities of the Experian Assistant, financial institutions can leverage GenAI in credit risk management, automate data processes, and develop customized analytics for business decision-making. This alignment with GenAI’s broader benefits—like operational streamlining and improved customer experience—ensures better risk identification, workflow optimization, and more informed decisions. To learn more about how Experian Assistant can transform your data analytics capabilities, watch our recent tech showcase and book a demo with your local Experian sales team. Watch tech showcase Learn more

This series will explore our monthly State of the Economy report, which provides a snapshot of the top monthly economic and credit data for financial service professionals to proactively shape their business strategies. The U.S. economy remains on solid footing, as GDP grew at a healthy 2.8% rate in Q3, driven by consumer spending. Alongside growth, inflation ticked up, while the labor market eased across several measures. In response to these developments, the Federal Reserve announced a quarter-point cut in November, with another cut penciled in for December. The November State of the Economy report fills in the rest of the macroeconomic story. This month’s highlights include: Annual headline inflation ticked up from 2.4% to 2.6%. 12,000 jobs were added in October, amid hurricane and strike impacts. Retail sales increased by 0.4% in October. Check out the full report for a detailed analysis of the rest of this month’s data, including the latest trends in originations, job openings, and growth. Download November's report As our economy continues to fluctuate, it’s critical to stay updated on the latest developments. Subscribe to our new series, The Macro Moment, for economic commentary from Experian NA’s Chief Economist, Joseph Mayans, with additional economic resources, including our new Election Eve’s Scenario Forecasts report. For more economic trends and market insights, visit Experian Edge.

We are squarely in the holiday shopping season. From the flurry of promotional emails to the endless shopping lists, there are many to-dos and even more opportunities for financial institutions at this time of year. The holiday shopping season is not just a peak period for consumer spending; it’s also a critical time for financial institutions to strategize, innovate, and drive value. According to the National Retail Federation, U.S. holiday retail sales are projected to approach $1 trillion in 2024, , and with an ever-evolving consumer behavior landscape, financial institutions need actionable strategies to stand out, secure loyalty, and drive growth during this period of heightened spending. Download our playbook: "How to prepare for the Holiday Shopping Season" Here’s how financial institutions can capitalize on the holiday shopping season, including key insights, actionable strategies, and data-backed trends. 1. Understand the holiday shopping landscape Key stats to consider: U.S. consumers spent $210 billion online during the 2022 holiday season, according to Adobe Analytics, marking a 3.5% increase from 2021. Experian data reveals that 31% of all holiday purchases in 2022 occurred in October, highlighting the extended shopping season. Cyber Week accounted for just 8% of total holiday spending, according to Experian’s Holiday Spending Trends and Insights Report, emphasizing the importance of a broad, season-long strategy. What this means for financial institutions: Timing is crucial. Your campaigns are already underway if you get an early start, and it’s critical to sustain them through December. Focus beyond Cyber Week. Develop long-term engagement strategies to capture spending throughout the season. 2. Leverage Gen Z’s growing spending power With an estimated $360 billion in disposable income, according to Bloomberg, Gen Z is a powerful force in the holiday market​. This generation values personalized, seamless experiences and is highly active online. Strategies to capture Gen Z: Offer digital-first solutions that enhance the holiday shopping journey, such as interactive portals or AI-powered customer support. Provide loyalty incentives tailored to this demographic, like cash-back rewards or exclusive access to services. Learn more about Gen Z in our State of Gen Z Report. To learn more about all generations' projected consumer spending, read new insights from Experian here, including 45% of Gen X and 52% of Boomers expect their spending to remain consistent with last year. 3. Optimize pre-holiday strategies Portfolio Review: Assess consumer behavior trends and adjust risk models to align with changing economic conditions. Identify opportunities to engage dormant accounts or offer tailored credit lines to existing customers. Actionable tactics: Expand offerings. Position your products and services with promotional campaigns targeting high-value segments. Personalize experiences. Use advanced analytics to segment clients and craft offers that resonate with their holiday needs or anticipate their possible post-holiday needs. 4. Ensure top-of-mind awareness During the holiday shopping season, competition to be the “top of wallet” is fierce. Experian’s data shows that 58% of high spenders shop evenly across the season, while 31% of average spenders do most of their shopping in December​. Strategies for success: Early engagement: Launch educational campaigns to empower credit education and identity protection during this period of increased transactions. Loyalty programs: Offer incentives, such as discounts or rewards, that encourage repeat engagement during the season. Omnichannel presence: Utilize digital, email, and event marketing to maintain visibility across platforms. 5. Combat fraud with multi-layered strategies The holiday shopping season sees an increase in fraud, with card testing being the number one attack vector in the U.S. according to Experian’s 2024 Identity and Fraud Study. Fraudulent activity such as identity theft and synthetic IDs can also escalate​. Fight tomorrow’s fraud today: Identity verification: Use advanced fraud detection tools, like Experian’s Ascend Fraud Sandbox, to validate accounts in real-time. Monitor dormant accounts: Watch these accounts with caution and assess for potential fraud risk. Strengthen cybersecurity: Implement multi-layered strategies, including behavioral analytics and artificial intelligence (AI), to reduce vulnerabilities. 6. Post-holiday follow-up: retain and manage risk Once the holiday rush is over, the focus shifts to managing potential payment stress and fostering long-term relationships. Post-holiday strategies: Debt monitoring: Keep an eye on debt-to-income and debt-to-limit ratios to identify clients at risk of defaulting. Customer support: Offer tailored assistance programs for clients showing signs of financial stress, preserving goodwill and loyalty. Fraud checks: Watch for first-party fraud and unusual return patterns, which can spike in January. 7. Anticipate consumer trends in the New Year The aftermath of the holidays often reveals deeper insights into consumer health: Rising credit balances: January often sees an uptick in outstanding balances, highlighting the need for proactive credit management. Shifts in spending behavior: According to McKinsey, consumers are increasingly cautious post-holiday, favoring savings and value-based spending. What this means for financial institutions: Align with clients’ needs for financial flexibility. The holiday shopping season is a time that demands precise planning and execution. Financial institutions can maximize their impact during this critical period by starting early, leveraging advanced analytics, and maintaining a strong focus on fraud prevention. And remember, success in the holiday season extends beyond December. Building strong relationships and managing risk ensures a smooth transition into the new year, setting the stage for continued growth. Ready to optimize your strategy? Contact us for tailored recommendations during the holiday season and beyond. Download the Holiday Shopping Season Playbook

 Technology has dramatically transformed the financial services landscape, fostering innovation and enhancing operational efficiency. In an interview at this year’s Money20/20 conference, Scott Brown, Group President of Financial and Marketing Services for Experian, sat down with Fintech Futures’ North America Correspondent Heather Sugg to share how Experian is leveraging data, analytics, and artificial intelligence (AI) to modernize the financial services industry. During the discussion, Scott highlighted the recent launch of Experian Assistant — our newest generative AI tool designed to accelerate the modeling lifecycle, resulting in greater productivity, improved data visibility, and reduced delays and expenses. While Experian Assistant is a business-to-business solution built alongside our clients, Scott also noted its broader impact — helping increase credit access for underserved consumers. “At Experian, we’re really focused on addressing the underserved community who doesn’t have access to credit,” said Scott. “And we think that this tool helps lenders reach those customers in an easier way.”  Learn more about Experian Assistant and watch our tech showcase to see the solution in action. Learn more Watch tech showcase

Do you know where your customers stand? Not literally, of course, but do you know how recent macroeconomic changes and their personal circumstances are currently affecting your portfolio? While refreshing your customers’ credit data quarterly works for some aspects of portfolio management, you need more frequent access to fresh data to quickly respond to risky customer behavior and new credit needs before your portfolio takes a hit. Use triggers to improve portfolio management Event-based credit triggers provide daily or real-time alerts about important changes in your customers’ financial situations. You can use these to manage risk by promptly responding to signs of changing creditworthiness or to prevent attrition by proactively reaching out to customers who are shopping for credit. Risk Triggers℠ and Retention Triggers℠ offer a real-time solution that can be customized to fit your needs for daily portfolio management. What are Risk Triggers? Experian’s Risk Triggers alert you of notable information, such as unfavorable utilization rate changes, delinquencies with other lenders and recent activity with high-interest, short-term loan products. This solution allows you to monitor how your customers manage accounts with other lenders to get ahead of potential risk on your book. You can use Risk Triggers to get daily insights into your customers’ activity — allowing you to quickly identify potentially risky behavior and take appropriate action to limit your exposure and losses. Types of Risk Triggers Choose from a defined Risk Triggers package that could help you identify high-risk customers, including: New trades Increasing credit utilization or balances over limit New collection accounts An account is charged-off A credit grantor closes an account New delinquency statuses (30 to 180 days past due) Consumers seeking access to short-term, high-risk financing options Bankruptcy and deceased events How to use Risk Triggers You can use the daily alerts from Risk Triggers to help inform your account management strategy. Depending on the circumstances, you might: Decrease credit limits Close or freeze accounts Accelerate payment requests Continue monitoring accounts for other signs of risk Spotlight on Experian’s Clarity Services events Included in Risk Triggers are events from Experian’s Clarity Services, which draw on expanded FCRA-regulated data* from a leading source of alternative financial credit data.  For example, you could get an alert when someone has a new inquiry from non-traditional loans. These triggers provide a broader view of the customer – offering added protection against risky behavior. What are Retention Triggers? Experian’s Retention Triggers can alert you when a customer improves their creditworthiness, is shopping for new credit, opens a new tradeline or lists property. Proactively responding to these daily alerts can help you retain and strengthen relationships with your customers — which is often less expensive than acquiring new customers. Types of Retention Triggers Choose from over 100 Retention Triggers to bundle, including: New trades New inquiries Credit line increases Property listing statuses Improving delinquency status Past-due accounts are brought current or paid off How to use Retention Triggers You can use Retention Triggers to increase lifetime customer value by proactively responding to your customers’ needs and wants. You might: Increase credit limits Offer promotional financing, such as balance transfers Introduce perks or rewards to strengthen the relationship Append attributes for improved decisioning  By appending credit attributes to Risk and Retention Trigger outputs, you can gain greater insight into your accounts.  Premier AttributesSM is Experian's core set of 2,100-plus attributes. These can quickly summarize data from consumers' credit reports, allowing you to more easily segment accounts to make more strategic decisions across your portfolio.  Trended 3DTM attributes can help you spot and understand patterns in a customer's behavior over time. Integrating trended attributes into a triggers program can help you identify risk and determine the next best action. Trended 3D includes more than 2,000 attributes and provides insights into industries such as bankcard, mortgage, student loans, personal loans, collections and much more.  By working with both triggers and attributes, you'll proactively review an account, so you can then take the next best action to improve your portfolio's profits. Customize your trigger strategy When you partner with Experian, you can bundle and choose from hundreds of Risk and Retention Triggers to focus on risk, customer retention or both. Additionally, you can work with Experian’s experts to customize your trigger strategy to minimize costs and filter out repetitive or unneeded triggers: Use cool-off periods Set triggering thresholds Choose which triggers to monitor Establish hierarchies for which triggers to prioritize Create different strategies for segments of your portfolio Learn more about Risk and Retention Triggers. Learn more *Disclaimer: “Alternative Financial Credit Data” refers to the use of alternative data and its appropriate use in consumer credit lending decisions, as regulated by the Fair Credit Reporting Act. Hence, the term “Expanded FCRA-Regulated Data” may also apply in this instance, and both can be used interchangeably.

The open banking revolution is transforming the financial services landscape, offering banks and financial institutions unprecedented access to consumer-permissioned data. However, during our recent webinar, “Navigating Open Banking: Strategies for Banks and Financial Institutions,” over 78% of attendees stated that they do not currently have an open banking strategy in place. This highlights a significant gap in the industry. By tapping into consumer-permissioned data, you can develop more personalized products, streamline credit decisioning, and improve overall customer engagement. With the right strategies, open banking offers a pathway to growth, innovation, and enhanced customer experiences. Here’s a snippet from the webinar’s Q&A session with Ashley Knight, Senior Vice President of Product Management, who shared her perspective on open banking trends and opportunities. Q: What specific analytic skill is the most important when working on open banking data?A: The ability to parse and transform raw data, a deep understanding of data mining, experience in credit risk, and general modeling skills to improve underwriting. Q: What lessons did the U.S. learn from the experience of other countries that implemented open banking? A: The use cases are common globally; typical uses of open banking data include second-chance underwriting to help score more consumers and customer management, which involves assessing cashflow data to leverage on an existing portfolio (first-party data). This can be used in various ways, such as cross-sell, up-sell, credit line increase, and growing/retaining deposits. Q: Does Experian have access to all a consumer’s bank accounts in cases where the consumer has multiple accounts?A: Data access is always driven by consumer permission unless the organization owns this data (i.e., first-party data). Where first-party data is unavailable, we collect it through clients or lenders who send it to us directly, having gained the proper consent. Yes, we can intake data from multiple accounts and provide a categorization and attribute calculation. Q: Where does the cashflow data come from? Is it only credit card spending?A: It includes all spending data from bank accounts, checking accounts, credit cards, savings, debit cards, etc. All of this can be categorized, and we can calculate attributes and/or scores based on that data. Q: What is the coverage of Experian’s cashflow data, and how is it distributed across risk bands?A: Cashflow data moves through Experian directly from consumer permissioning for B2B use cases or from institutions with first-party data. We perform analytics and calculate attributes on that portfolio. Don’t miss the chance to learn from our industry leaders on how to navigate the complexities of open banking. Whether you are a seasoned professional or just starting to explore its potential, this webinar will equip you with the knowledge you need to stay ahead. Watch on-demand recording Learn more Meet our expert Ashley Knight, Senior VP of Product Management, Experian Ashley leads our product management team focusing on alternative data, scores, and open banking. She fosters innovation and drives financial inclusion by using new data, such as cash flow, analytics, and Experian’s deep expertise in credit.

This series will explore our monthly State of the Economy report, which provides a snapshot of the top monthly economic and credit data for financial service professionals to proactively shape their business strategies. After the Federal Reserve announced its first cut since 2020 in September, several pieces of economic data have surpassed expectations. Job creation was almost double economists’ estimates, unemployment ticked down, and personal incomes were revised up. Alongside these areas of strength, inflation continued to prove stubborn. The October State of the Economy report fills in the rest of the developing macroeconomic story. This month’s highlights include:  Unemployment decreased for the second month in a row, down to 4.1%. Core inflation increased from 3.2% to 3.3%, driven by shelter and service costs. Negative rental payment activity has declined 1.9% over the past year. Check out our report for a detailed analysis of the rest of this month’s data, including the latest trends in originations, retail sales, and consumer sentiment. Download October's report As our economy continues to fluctuate, it's critical to stay updated on the latest developments. Subscribe to our new series, The Macro Moment, for economic commentary from Experian NA’s Chief Economist, Joseph Mayans, with additional economic resources, including our new Lending Conditions Chartbook and our new Labor Market Monitor. For more economic trends and market insights, visit Experian Edge.

In today’s digital age, call center fraud is a growing threat that businesses can no longer afford to ignore. As fraudsters become increasingly sophisticated, it’s crucial for companies to implement robust security measures to protect both their operations and their consumers. Various forms of call center fraud can have a significant impact on businesses. To prevent this, companies can use effective strategies including multifactor authentication solutions and account takeover prevention techniques. But first, what is call center fraud? Understanding call center fraud Call center fraud occurs when fraudsters exploit vulnerabilities in customer service operations to gain unauthorized access to sensitive information and commit identity theft. This type of fraud can take many forms, including social engineering, which occurs when a fraudster manipulates a call center agent into providing information or access, and phishing, which occurs when fraudsters use deceptive tactics to obtain confidential details from unsuspecting individuals. One of the most concerning tactics used by fraudsters is impersonation, or pretending to be legitimate consumers to gain access to accounts. Once they have access, they can make unauthorized transactions, change account details, or even take over the account entirely—a scenario known as an account takeover. The impact of these fraudulent activities can be devastating, leading to significant financial losses, damage to brand reputation, and a loss of consumer trust. Key strategies for preventing call center fraud According to recent research, account takeover fraud has increased by 330% in the past two years, projecting to cost $6.24 billion globally.[1] In addition, the number of U.S. consumers who have experienced account takeover has increased from 22% in 2021 to 29% in 2023.[2] To effectively combat call center fraud, businesses must adopt a multi-layered approach that includes advanced technological solutions, comprehensive employee training, and real-time monitoring. Here are some of the most effective strategies: 1. Implementing multifactor authentication (MFA) solutions One of the most effective ways to secure consumer interactions is by implementing multifactor authentication (MFA) solutions. MFA requires users to provide two or more verification factors to gain access to an account or complete a transaction. This adds an extra layer of security, making it significantly more difficult for fraudsters to succeed even if they have obtained some of the consumer’s information. MFA can be integrated into call center operations in several ways. For example, businesses can use voice recognition as a biometric factor, requiring consumers to verify their identity through a unique voiceprint. Other methods include sending a one-time code via text message, which the consumer must provide during the call, or using mobile app verification, where consumers approve transactions directly through their smartphones. 2. Account takeover prevention Account takeover is one of the most serious threats to call centers, as they involve fraudsters gaining control of a consumer’s account, often with disastrous consequences. To prevent account takeover, businesses can employ a combination of technological solutions and best practices. First, understanding what account takeover entails is crucial. It typically begins when a fraudster obtains some of the consumer’s personal information—often through phishing, social engineering, or a data breach. They then use this information to impersonate the consumer and convince call center agents to provide them with access to the account. To combat this, businesses can employ several account takeover prevention techniques. Anomaly detection systems can flag unusual activities, such as login attempts from unfamiliar locations or devices, prompting additional verification steps. Behavioral biometrics is another powerful tool, analyzing patterns in how users interact with their devices to detect inconsistencies that may indicate fraud. Continuous authentication, where the system continuously verifies the user’s identity throughout the session, is also effective in catching fraudsters in the act. 3. Training and awareness Technology alone may not be enough to entirely prevent call center fraud—human factors are equally important. Regular training for call center staff is essential to ensure team members can recognize and respond to potential fraud attempts. Employees should be trained to identify common tactics used by fraudsters, such as social engineering, and to follow strict verification procedures before providing any sensitive information. Awareness campaigns can also play a significant role in preventing fraud. Internally, companies should run regular campaigns to remind employees of the importance of adhering to security protocols. Externally, educating consumers about the risks of fraud and encouraging them to use security features like MFA can help reduce the likelihood of successful attacks. 4. Real-time monitoring and analytics Real-time monitoring is a critical component of an effective fraud prevention strategy. By continuously monitoring calls and transactions, businesses can quickly identify and respond to suspicious activities before they escalate. Advanced analytics tools, including voice analytics and behavior analysis, can provide valuable insights into potential fraud, allowing companies to take proactive measures. Voice analytics, for instance, can detect stress or hesitation in a caller’s voice, which may indicate that they are not who they claim to be. Behavior analysis can track how consumers typically interact with their accounts, flagging deviations from the norm as potential fraud. Continuous improvement is key here—regularly reviewing and updating monitoring protocols ensures that businesses stay ahead of evolving threats. Preventing call center fraud in your business By using a multi-layered fraud approach through a variety of authentication solutions, your business can quickly detect call center fraud without disrupting your consumers’ experience. Identify the risk Identity-based risk detection can pinpoint when a specific identity may be in the hands of fraudsters. Device intelligence solutions can recognize the risk associated with a specific device used to attempt online access. Address the risk Knowledge-based authentication (KBA) can quickly authenticate users by asking questions only they can answer, which can deter fraudsters. MFA services can generate and deliver a one-time password to a consumer’s mobile device to verify their identity in real time. Document verification allows your business to collect and verify images of identity documents uploaded from a consumer’s mobile device. Protect your business and your consumers from call center fraud Call center fraud is a significant threat that requires a proactive and comprehensive approach to prevention. By implementing strategies such as multifactor authentication solutions, account takeover prevention techniques, and robust employee training, businesses can significantly reduce their risk of falling victim to fraud. In today’s fast-paced digital world, staying vigilant and proactive is the key to safeguarding your call center against fraud. Act now to protect your business and maintain the trust of your consumers. Enable your call center to detect risk quickly and effectively with our robust fraud prevention solutions. Get started Download our identity and fraud report This article includes content created by an AI language model and is intended to provide general information. [1] Worldmetrics.org, Account Takeover Statistics: Losses to Reach $6.24 Billion Globally, 2024. [2] Security.org, Account Takeover Incidents are Rising: How to Protect Yourself in 2024.

This series will explore our monthly State of the Economy report, which provides a snapshot of the top monthly economic and credit data for financial service professionals to proactively shape their business strategies. During their September meeting, the Federal Reserve made a highly-anticipated announcement to cut rates for the first time since 2020. Fed officials cut rates by 50bps, while also penciling in an additional 50bps of cuts for 2024 and 100bps of cuts in 2025 in their Summary of Economic Projections. While rates are coming down and inflation continues to cool, there were downward revisions to job creation made in August and declining job openings in July. Data highlights from this month’s report include: The Federal Reserve announced a 50bps rate cut during the September meeting. Annual headline inflation cooled from 2.9% to 2.5%, getting closer to the Fed’s 2% goal. Mortgage originations increased 7.0% in August. Check out our report for a deep dive into the rest of this month’s data, including the latest trends in job creation, retail sales, and consumer sentiment. Download September's report As our economy continues to fluctuate, it's critical to stay updated on the latest developments. Subscribe to our new series, The Macro Moment, for economic commentary from Experian North America's Chief Economist, Joseph Mayans, and download our new Lending Conditions Chartbook for additional insights. For more economic trends and market insights, visit Experian Edge.