Tag: verification

In the latest episode of "The Chrisman Commentary" podcast, Experian experts Ken Tromer, Director, Mortgage Market Engagement, and Ted Wentzel, Senior Product Marketing Manager, talk about why price transparency is important in the verification process, and how Experian Verify ensures it. Listen to the full episode for all the details and tune in to the previous episode to learn more about reducing mortgage pipeline fallout and improving loan pull-through rate. Listen to podcast

In the previous episode of “The Chrisman Commentary” podcast, Joy Mina, Director of Product Commercialization at Experian, talked about the benefits of a waterfall strategy for income and employment verification. In the latest episode, Joy explores common misconceptions around verifications, such as how a lender needs to put a provider with the most records first in their waterfall. "While that might feel like a sure-fire way to cut costs, it isn't necessarily the most effective," said Joy. "Instead of comparing records, I would really encourage lenders to focus on a provider's total cost to verify a consumer." Listen to the full episode to learn about more misconceptions associated with verifications and what you can do to enhance your strategies. Listen to podcast  Learn more

To say “yes” to consumers faster and more efficiently, financial institutions need flexible access to instant income and employment verification data. In an episode of “The Chrisman Commentary” podcast, Joy Mina, Director of Product Commercialization at Experian, talks about how income and employment verification has changed since Experian entered the market, the benefits of a waterfall strategy, and what’s next in our verifications journey. “Back then, we were hearing lenders primarily asking for more innovative solutions,” said Joy. “They wanted more flexibility without sacrificing quality of service.” Listen to the full episode to learn more about what lenders look for in an income and employment verification solution and how Experian VerifyTM is meeting these needs. Listen to podcast  Learn more

This article was updated on November 9, 2023. Fraud – it’s a word that comes up in conversations across every industry. While there’s a general awareness that fraud is on the rise and is constantly evolving, for many the full impact of fraud is misunderstood and underestimated. At the heart of this challenge is the tendency to lump different types of fraud together into one big problem, and then look for a single solution that addresses it. It’s as if we’re trying to figure out how to un-bake a terrible cake instead of thinking about the ingredients and the process needed to put them together in the first place. This is the first of a series of articles in which we’ll look at some of the key ingredients that create different types of fraud, including first party, third party, synthetic identity, and account takeover. We’ll talk about why they’re unique and why we need to approach each one differently. At the end of the series, we’ll get a result that’s easier to digest. I had second thoughts about the cake metaphor, but in truth it really works. Creating a good fraud risk management process is a lot like baking. We need to know the ingredients and some tried-and-true methods to get the best result. With that foundation in place, we can look for ways to improve the outcome every time. Let’s start with a look at the best known type of fraud, third party. What is third-party fraud? Third-party fraud – generally known as identity theft – occurs when a malicious actor uses another person’s identifying information to open new accounts without the knowledge of the individual whose information is being used. When you consider first-party vs third-party fraud, or synthetic identity fraud, third-party stands out because it involves an identifiable victim that’s willing to collaborate in the investigation and resolution, for the simple reason that they don’t want to be responsible for the obligation made under their name. Third-party fraud is often the only type of activity that’s classified as fraud by financial institutions. The presence of an identifiable victim creates a high level of certainty that fraud has indeed occurred. That certainty enables financial institutions to properly categorize the losses. Since there is a victim associated with it, third party fraud tends to have a shorter lifespan than other types. When victims become aware of what’s happening, they generally take steps to protect themselves and intervene where they know their identity has been potentially misused. As a result, the timeline for third-party fraud is shorter, with fraudsters acting quickly to maximize the funds they’re able to amass before busting out. How does third-party fraud impact me? As the digital transformation continues, more and more personally identifiable information (PII) is available on the dark web due to data breaches and phishing scams. Given that consumer spending is expected to increase1, we anticipate that the amount of PII readily available to criminals will only continue to grow. All of this will lead to identity theft and increase the risk of third-party fraud. More than $43 billion in total losses was reported due to identity theft and fraud in the U.S. in 2022.2 Solving the third-party fraud problem We’ve examined one part of the fraud problem, and it is a complex one. With Experian as your partner, solving for it isn’t. Continuing my cake metaphor, by following the right steps and including the right ingredients, businesses can detect and prevent fraud. Third-party fraud detection and prevention involves two distinct steps. Analytics: Driven by extensive data that captures the ways in which people present their identity—plus artificial intelligence and machine learning—good analytics can detect inconsistencies, and patterns of usage that are out of character for the person, or similar to past instances of known fraud. Verification: The advantage of dealing with third-party fraud is the availability of a victim that will confirm when fraud is happening. The verification step refers to the process of making contact with the identity owner to obtain that confirmation and may involve identity resolution. It does require some thought and discipline to make sure that the contact information used leads to the identity owner—and not to the fraudster. In a series of articles, we’ll be exploring first-party fraud, synthetic identity fraud, and account takeover fraud and how a layered fraud management solution can help keep your business and customers safe and manage third-party fraud detection, first-party fraud, synthetic identity fraud, and account takeover fraud prevention. Let us know if you’d like to learn more about how Experian is using our identity expertise, data, and analytics to create robust fraud prevention solutions. Contact us 1 Experian Ascend Sandbox 2 2023 U.S. Identity and Fraud Report, Experian.

Are you looking for ways to make your financial institution more secure without adding unnecessary friction to the customer experience? Automated identity verification is an essential part of this process, safeguarding sensitive consumer information and helping to prevent fraud. This blog post will serve as the ultimate guide to automated identity verification so that you can understand why it's important and how it works. We'll cover all the details, like what automated ID verification is, how authentication software works with identifying documents, why automated identification technology is preferred over manual processes, and tips on implementing automation identity verification solutions into your business practices.   What is automated identity verification?  Automated identity verification is a secure, efficient process for verifying the identity of individuals or entities. This process is integral in various industries, especially the financial sector, to curb identity theft and fraudulent activities. It operates by using advanced analytics and authentication software that cross-references the provided data with a set of stored information. This technology eliminates  manual ID verification, saving time and improving accuracy. ID verification automation uses artificial intelligence and machine learning to compare identifying credentials against various authenticating sources.   Automated identity verification also comes into play for employment and income verification. Experian VerifyTM enables businesses through precise, real-time employment and income verification, ultimately helping businesses reduce risk, accelerate conversion and remove friction.   For a more comprehensive understanding of automated identity verification, you can visit Experian's Identity Verification Solutions webpage, which provides a deep dive into the intricacies of identity verification, including insights on its importance in modern business operations and how it keeps your business secure.  Benefits of automated identity verification for businesses and consumers   Automated ID verification has revolutionized the way businesses conduct their operations and interact with customers. For businesses, AIV offers a range of benefits such as:  Improved efficiency – businesses can automate the time-consuming process of identity verification, freeing up resources (staff) to focus on other critical tasks.  Enhanced security – the technology ensures that customer data is secure and accurate, minimizing fraud risks and/or data breaches.  Reduced costs – with the process being faster and more secure, costs are reduced as a byproduct.  On the other hand, consumers enjoy a hassle-free experience as they can verify their identity within seconds, without  physical documentation. This is essential for today’s consumers who expect frictionless experiences that keep them and their information safe.   Data from Experian’s annual U.S. Identity and Fraud Report reflects these sentiments: 37% of consumers moved a new account opening process to another organization because of a poor experience; 95% of consumers say it's important to be repeatedly recognized online by businesses; and 60% of consumers are concerned about their online privacy. With automated identity verification, businesses can build trust, streamline their processes, and ultimately improve their bottom line.  Furthermore, automated identity verification is a necessary component for businesses to minimize fraud risks in our evolving digital landscape. Living in an era where cybercrime is rampant, AIV safeguards businesses from potential fraudulent attempts and data breaches that could cause significant financial and reputational damage.   From a compliance standpoint, automated identity verification ensures regulatory compliance, which is critical, considering the stringent regulations regarding customer data protection. Non-compliance can lead to severe legal repercussions and financial penalties. For financial institutions, Know Your Customer (KYC) policies must include Customer Identification Programs. Experian can help across the entire customer journey, from onboarding through portfolio management, while reducing risk of non-compliance and providing seamless authentication.  Common challenges of automated identity verification   As more companies turn to artificial intelligence and automation to deliver superior customer service experiences, the challenges businesses face have multiplied. One of the most common issues is ensuring identity proofing and accurate information protection within their networks. Although account takeover prevention has become more advanced, fraudsters still use increasingly sophisticated methods to circumvent it. As such, businesses must continuously develop new strategies to overcome these challenges, ensuring that their AI-powered solutions continue to provide reliable and secure user experiences.  Types of identity verification solutions   As the digital world continues to evolve, automated identity verification solutions have become a crucial part of online interactions. These solutions not only enhance security measures, but also provide faster and more efficient ways of identifying individuals.   For instance, facial recognition is one example. Experian’s CrossCore® Doc Capture enables confident identity verification via facial recognition, which scans a person's face and compares it to their identification documents. Another type is voice recognition, which uses speech patterns to verify an identity. Additionally, document verification scans and validates various identification documents, such as driver's licenses and passports. It's essential to choose the most suitable AIV solution for your organization to ensure robust and reliable security measures.  How to implement an automated ID verification solution   It’s not new news that identity theft and fraud continue to be major concerns, particularly in an increasingly digital-only world.  Implementing automated identity verification solutions to safeguard against such threats can seem daunting, particularly for businesses with limited IT resources. However, the benefits of automated ID verification, such as increased accuracy and efficiency, make it a worthwhile investment. When choosing a solution,  consider factors such as the level of security provided, ease of implementation and integration with existing systems, and the ability to customize rules and settings. With careful planning and the right solution, , organizations can take a significant step towards improving their security posture and protecting their customers.  Best Practices for automated identity verification  Automated identity verification presents one way that financial institutions can increase automation. In doing so, organizations can improve accuracy, speed, and security in the verification process. One technique that has proven effective is the use of biometric technology, such as facial recognition and fingerprint scanning, to verify a person's identity. Additionally, utilizing various data sources, such as credit bureaus like Experian and government agencies, can increase the accuracy of verification. Implementing these best practices can not only save time and resources but also enhance customer experience by providing a seamless and secure verification process.  In summary, automated identity verification is a vital tool for businesses and consumers to enhance their safety and security when engaging with customers. Automated identity verification streamlines customer processes across the lifecycle by eliminating manual checks and lengthy delays. As technology continues to evolve, it’s important for organizations to remain mindful that the methodologies used within automated identity verification will rapidly change as well. The key is to stay ahead. Automated identity verification solutions offer many advantages for businesses who want to maintain their trustworthiness while staying competitive in an ever-changing market.  To learn more about Experian’s automated identity verification solutions, visit our website.    Learn More *This article includes content created by an AI language model and is intended to provide general information. 

Earlier this year, I explored the potential impact of the end of the current Public Health Emergency (PHE). The U.S. federal government has been operating under a PHE for COVID-19 for more than 30 consecutive months since it was initially announced in January 2020. On July 15, 2022, this PHE was renewed for a tenth time. Following this latest extension, the Centers for Medicare & Medicaid Services (CMS) has released a roadmap for the end of the COVID-19 PHE. In a related blog, they reiterate the commitment to provide a 60-day notice prior to the end of the PHE, but urge states and healthcare providers to prepare for the end “as soon as possible.” With these upcoming changes in mind, I wanted to review key areas for providers to consider as they prepare for the end of the PHE. Enrollments continue to increase, putting state budgets at risk From the start of the PHE in February 2020 through April 2022, Medicaid/Children’s Health Insurance Plan (CHIP) enrollment has increased by more than 17M people and this is affecting every state. Nearly half of all states have experienced an increase of more than 25% during this time period, with some experiencing increases of more than 40%. Given an average Medicaid cost to states of more than $8.4K per capita, that translates to an increase of billions of dollars. Once the PHE expires, states will have 12 months to redetermine eligibility for continued enrollment in the program, or risk bearing 100% of the associated cost. Preparing for the end of the PHE To avoid unnecessary expenditures and ensure that citizens are receiving access to the correct services, states will have to conduct a holistic review of their Medicaid rolls to confirm eligibility. In CMS’s guidance for states to prepare for the end of the PHE, they recommend creating an automated process to handle this unprecedented review. With the right partner, agencies can perform redeterminations of their existing registration rolls, and prepare for future services requests. The right solution can allow citizens to easily apply for benefits, triggering the automatic, real-time pull of income and employment information so that the agency can verify eligibility. Experian is a trusted government partner that is ready to assist states with preparing and automating the process for redetermination of benefits. To learn more about how Experian can assist with citizen benefit redetermination and registration 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

Experian recently announced its expansion into Employer Services and the release of a new suite of real-time income and employment verification products, Experian Verify™. The COVID-19 pandemic amplified lenders' need for deeper insights into a consumer's financial situation. At the same time, employers were flooded with record-breaking unemployment claims, while managing stay-at-home orders, income and employment verification fulfillment requests, and more. "We're committed to helping employers, businesses, lenders, and consumers on the road to recovery from the pandemic and beyond," said Alex Lintner, Group President Experian Consumer Information Services. "To support this, we're building two businesses: Experian Employer Services and Verification Solutions. These businesses will create meaningful change and provide our clients with competitive options to achieve their verification needs while helping improve access to credit for consumers." With Experian Verify, lenders can quickly and easily create a more complete picture of a consumer's financial situation by verifying an applicant's income and employment status. Powered by our growing network of payroll and proprietary employer data, Experian Verify offers lenders flexible and secure access to income and employment records. With a consumer's consent, lenders can request the information from Experian and an income and employment report can be delivered to lenders through an API, online Experian dashboard, or paired with an Experian credit report. "As we begin to recover from the COVID-19 pandemic and employers are reopening their doors, we're confident we have assembled the best-of-the-best to help employers overcome their toughest challenges. We're committed to leveraging our combined capabilities and focus on high-touch customer service to deliver secure, scalable and transparent services to employers," said Michele Bodda, President of Experian Mortgage, Employer Services and Verification solutions. Visit us for more information on Experian Verify and Experian's Employer Services. Contact us

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