Tag: government

The economic volatility of the last several years has left local, state, and even federal budgets tighter than usual, meaning agencies must collect every dollar owed and do it efficiently. So how do agencies continue to deliver the services citizens expect and have given their tax dollars to support? It starts with an efficient, effective collections strategy. The need for collections An important source of revenue for many government agencies is overdue obligations. These might include: Business, personal, and property taxesChild supportFinesCourt fees By collecting on these obligations – and doing so efficiently – agencies can better fund themselves to serve their citizens. Debt collections process While many agencies are, at least initially, responsible for their debt management efforts, there are many layers to the collections process. Step 1: The agency manages the collections process independently (manually or automatically). Step 2: The Bureau of Fiscal Service takes over servicing delinquent debts and work with the debtor to pay it, suspend it, or end collections efforts. Step 3: The debt may be sent to a Private Collection Agency (PCA). Better collections with better data To collect effectively, agencies need to prioritize and streamline debt assessment and collection, which starts with better data. First, better data – like the data provided via skip tracing – enables better management of data surrounding moves, name changes, changes in marital status, and more, all of which makes for better collections efforts. Second is prioritizing collections efforts to focus on those citizens with the best ability to repay, making the most of existing resources and leveraging automated tools where available. Third is keeping collections efforts compliant with all rules and regulations, which is made easier with the right partner. How Experian can help Experian assists organizations of all shapes and sizes to monitor, segment, and prioritize receivable accounts. We leverage timely and relevant information for greater insight into skip tracing, identify the best times for collections efforts, and monitor, measure, test, and refine strategies to maximize results. To learn more about how Experian can help your agency maximize your collections efforts, visit us or request a call. Learn more

Across all levels of government, we are seeing a surge in digital modernization — transforming the delivery of traditional services into a contactless, digital environment. Whether it is with the Social Security Administration’s digital modernization effort, the state of California’s Vision 2023, or even at the local level with counties modernizing digital access to records for their citizens. This comes at a time when identity fraud in government services is growing at an alarming rate, with an increase of over 2,900 percent related to government benefits or document fraud in 2020 according to the FTC. A key challenge for any agency planning digital modernization is balancing access with security. This is particularly critical in an environment where over 1 billion records were exposed over a recent five-year span. Given the U.S. population is currently about 330 million, that means each citizen had an average of three breach exposures. Therefore, identity proofing must be a critical part of any agency modernization effort. National Institute of Standards and Technology Special Publication (NIST SP) 800-63 revision 3 lays out a risk assessment to help organizations determine the appropriate level of security to apply based on six areas of impact. However, identity proofing a new citizen through digital channels requires significant friction at levels above Identity Assurance Level 1 (IAL1). The stringent requirement for a biometric match in this standard at IAL2 presents a real challenge to the balance mentioned above, which has led agencies to seek alternatives that both combat the risk of fraud and identity theft and are operationally sound. Experian has been supporting the private sector in this endeavor for years, helping them effectively manage identity theft and fraud concerns while allowing seamless access to services for the vast majority of their consumers. This risk-based approach through our CrossCore® platform and multitude of options to identify and combat fraud allows agencies to deliver the security and accessibility expected by their citizens. CrossCore allows agencies to verify and identify citizens using multiple data points: Traditional personally identifiable information (name, address, Social Security number, date of birth) Email Phone number Device identification Biometrics CrossCore can instantly take the risk information from these risk signals above and initiate additional verification where there is a higher risk of identity theft or fraud, including knowledge-based verification (KBV), one-time passcode (OTP) to a trusted phone number linked to the identity being presented, or even remotely verifying identity documents (e.g., driver’s license, passport, etc.) through our new CrossCore Doc Capture solution. Just recently, Experian helped a state lottery agency implement an efficient identity proofing system to enable digital redemption of winning tickets, saving both the government and the citizens time and money. Experian’s identity, verification, and fraud solutions can help government agencies of all sizes on their journey to digital modernization. To learn more about the options available to your agency, visit us or request a call. CrossCore Doc Capture

Since January 27, 2020, the federal government has been operating under a Public Health Emergency (PHE) related to the COVID-19 pandemic. On January 14, 2022, this PHE was renewed for an eighth time. While we are currently in the midst of the omicron surge, some suggest that we may be nearing the beginning of the end of the pandemic — and thus the inevitable expiration of the PHE. Impacts of the PHE While the PHE remains in effect, states must maintain current Medicaid enrollees, regardless of changes to their eligibility status. A recent report showed Medicaid enrollment increased 16.8% from February 2020 to June 2021. This is counter to the previous trend, where enrollment declined from 2017 to 2019. Furthermore, the average per capita Medicaid cost to states is estimated at $5K–$10K (states share about one-third of the cost of Medicaid). The combination of the per capita expense and the increased number of enrollees during the pandemic translates to a significant impact on state budgets. Once the federal order expires, states will have 12 months to redetermine eligibility for continued enrollment in the program, or risk bearing 100% of the associated cost. Processing redetermination in a timely manner is critical for states to avoid unnecessary expenditures and to ensure that citizens are receiving access to the correct services. It’s imperative that states start planning for redetermination of benefits for continued Medicaid coverage as soon as possible to be prepared to take action at the inevitable conclusion of the PHE. Preparing for redeterminations At the end of the PHE, states will need a system to easily and confidently review their current Medicaid rolls to confirm eligibility. Implementing this system will likely involve working with a trusted partner who can provide tools and advantages such as: Portfolio analysis Real-time analysis Verification of income and employment Compliance adherence Affordability With the correct systems in place, states can act quickly once the PHE ends, saving unnecessary expenditures and providing better services to citizens in need. If your state agency would like to learn more about how Experian can assist with citizen benefit redetermination efforts, visit us or request a call. Learn more

The tax gap—the difference between what taxpayers should pay and what they actually pay on time—can have a substantial impact on states’ budgets. Tax agencies and other state departments are responsible for helping states manage their budgets by minimizing expected revenue shortfalls. Underreported income is a significant budget complication that continues to frustrate even the most effective tax agencies, until the right tools are brought into play.   The Problem Underreporting is a large, complex issue for agencies. The IRS currently estimates the annual tax gap at $441 billion. There are multiple factors that comprise that total, but the most prevalent is underreporting, which represents 80% of the total tax gap. Of that, 54% is due to underreporting of individual income tax. In addition to being the largest contributor to the tax gap, underreporting is also extremely challenging to identify out of the millions of returns being filed. With 85% of taxes owed correctly reported and paid, finding underreporting can be like trying to locate a needle in the proverbial haystack. Making this even more challenging is the limited resources available for auditing returns, which makes efficiency key. The Solution Data, combined with artificial intelligence (AI) equals efficient detection. The problem with trying to detect which returns are most likely to have underreported income is similar to many other challenges Experian has solved with AI. Partnerships between Experian and state agencies combine what we know about consumers with what their agency knows about their population. We can take the data and use AI to separate the signal from the noise, finding opportunities to recoup lost revenue. Read our case study on how Experian was able to help an agency identify instances of underreporting, detecting an estimated $80 million annual lost revenue from underreported income. Download case study Contact us

With new legislation, including the Coronavirus Aid, Relief, and Economic Security (CARES) Act impacting how data furnishers will report accounts, and government relief programs offering payment flexibility, data reporting under the coronavirus (COVID-19) outbreak can be complicated. Especially when it comes to small businesses, many of which are facing sharp declines in consumer demand and an increased need for capital. As part of our recently launched Q&A perspective series, Greg Carmean, Experian’s Director of Product Management and Matt Shubert, Director of Data Science and Modelling, provided insight on how data furnishers can help support small businesses amidst the pandemic while complying with recent regulations. Check out what they had to say: Q: How can data reporters best respond to the COVID-19 global pandemic? GC: Data reporters should make every effort to continue reporting their trade experiences, as losing visibility into account performance could lead to unintended consequences. For small businesses that have been negatively affected by the pandemic, we advise that when providing forbearance, deferrals be reported as “current”, meaning they should not adversely impact the credit scores of those small business accounts. We also recommend that our data reporters stay in close contact with their legal counsel to ensure they follow CARES Act guidelines. Q: How can financial institutions help small businesses during this time? GC: The most critical thing financial institutions can do is ensure that small businesses continue to have access to the capital they need. Financial institutions can help small businesses through deferral of payments on existing loans for businesses that have been most heavily impacted by the COVID-19 crisis. Small Business Administration (SBA) lenders can also help small businesses take advantage of government relief programs, like the Payment Protection Program (PPP), available through the CARES Act that provides forgiveness on up to 75% of payroll expenses and 25% of other qualifying expenses. Q: How do financial institutions maintain data accuracy while also protecting consumers and small businesses who may be undergoing financial stress at this time? GC: Following bureau recommendations regarding data reporting will be critical to ensure that businesses are being treated fairly and that the tools lenders depend on continue to provide value. The COVID-19 crisis also provides a great opportunity for lenders to educate their small business customers on their business credit. Experian has made free business credit reports available to every business across the country to help small business owners ensure the information lenders are using in their credit decisioning is up-to-date and accurate. Q: What is the smartest next play for financial institutions? GC: Experian has several resources that lenders can leverage, including Experian’s COVID-19 Business Risk Index which identifies the industries and geographies that have been most impacted by the COVID crisis. We also have scores and alerts that can help financial institutions gain greater insights into how the pandemic may impact their portfolios, especially for accounts with the greatest immediate exposure and need. MS: To help small businesses weather the storm, financial institutions should make it simple and efficient for them to access the loans and credit they need to survive. With cash flow to help bridge the gap or resume normal operations, small businesses can be more effective in their recovery processes and more easily comply with new legislation. Finances offer the support needed to augment currently reduced cash flows and provide the stability needed to be successful when a return to a more normal business environment occurs. At Experian, we’re closely monitoring the updates around the coronavirus outbreak and its widespread impact on both consumers and businesses. We will continue to share industry-leading insights to help data furnishers navigate and successfully respond to the current environment. Learn more About Our Experts Greg Carmean, Director of Product Management, Experian Business Information Services, North America Greg has over 20 years of experience in the information industry specializing in commercial risk management services. In his current role, he is responsible for managing multiple product initiatives including Experian’s Small Business Financial Exchange (SBFE), domestic and international commercial reports and Corporate Linkage. Recently, he managed the development and launch of Experian’s Global Data Network product line, a commercial data environment that provides a single source of up to date international credit and firmographic information from Experian commercial bureaus and Tier 1 partners across the globe. Matt Shubert, Director of Data Science and Modelling, Experian Data Analytics, North America Matt leads Experian’s Commercial Data Sciences Team which consists of a combination of data scientists, data engineers and statistical model developers. The Commercial Data Science Team is responsible for the development of attributes and models in support of Experian’s BIS business unit. Matt’s 15+ years of experience leading data science and model development efforts within some of the largest global financial institutions gives our clients access to a wealth of knowledge to discover the hidden ROI within their own data.  

The sheer range of dynamic and emerging fraud tactics can impede agencies from achieving security. These threats must be met with a variety of identity proofing and management tactics. Without monitoring, performance assessments and tuning, a singular and static identity proofing strategy can be exposed by evolving schemes and the use of high-quality compromised identity data. Traditional verification and validation parameters alone are simply too obtuse and can be circumvented easily by those with criminal intent. Static rules based on overly simplistic verification and validation checks can be outsmarted by intelligent fraudsters. Conversely, those same static rules must also have built-in mechanisms to accommodate true-name users who initially may not meet that criteria for identity proofing. Vast and diverse user populations, more arduous — and arguably more difficult to achieve — digital identity guidelines put forth by the National Institute of Standards and Technology, and operational constraints all pose significant challenges for government. But there are ways for government to modernize identity proofing successfully. Modern fraud and identity strategies There are many emerging trends and best practices for modern fraud and identity strategies, including: Applying right-sized fraud and identity proofing solutions. To reduce user friction or service disruption and manage fraud risk appropriately, agencies need to apply fraud mitigation strategies. Such strategies reflect the cost, measured risk and level of confidence, as well as compliance needed, for each interaction. This is called right-sizing the fraud solution. For example, agencies can cater a fraud solution that ensures a seamless experience when a citizen is calling a service center, versus an online interaction, versus a face-to-face one. Maintaining a universal view of the user. Achieved by employing a diverse breadth and depth of data assets and applied analytics, this tactic is the core of modern fraud mitigation and identity management. Knowing the individual user extends beyond a traditional 360-degree view. It means having knowledge of a person’s offline and online behavior, not only with your agency, but also with other agencies with which that user has a relationship. Expanding user view through a blended ecosystem. Increasingly, agencies are participating in a blended ecosystem — working with vendors, peer agencies and partners. There exists a collaborative culture in identity and fraud management that doesn’t exist in more competitive commercial environments. Fraudsters easily share information with one another, so those combatting it need to share information as well. Achieving agility and scale using service-based models. More agencies are adopting service-based models that provide greater agility and response to dynamic fraud threats, diverse population changes, and evolving compliance requirements or guidance. Service-based identity proofing provides government agencies the benefit of regularly updated data assets, analytics and expertise in strategy design. These assets are designed to respond to fraud or identity intelligence observed across various markets and industries, often protecting proactively rather than reactively. Future-proofing fraud solution choices. Technical and operational resources are always in relatively short supply compared to demand. Agencies need the ability to “code once” in order to expand and evolve their fraud strategies with ease. Future-proofing solutions must also be combined with an ever-changing set of identity proofing requirements and best practices, powered by a robust and innovative marketplace of service providers. The future of identity proofing in the public sector is more than just verifying individual identities. New standards in digital identity proofing are a responsive result of mass data compromise and failures in legacy techniques. Achieving compliant and confident identity assurance requires a layered approach, flexibly designed and orchestrated to accommodate diverse identity assertions, evidence, and contextual invocation of technologies and data assets. Government must now use risk-based approaches and mitigation strategies to identity threats quickly and determine the type of fraud before damage is done. Download our recent report in which we discuss the primary challenges of identity proofing in the public sector and what modernization of identity proofing looks like.