In May 2020, Experian launched Sure Profile and became the first company with an offering to fight synthetic identity fraud that’s integrated into the credit profile with market-leading assurance. In fact, we are so confident in our solution that we’ll share in loan losses on assured profiles if we get it wrong, a first for the industry.
Recently, International Data Corporation (IDC) highlighted Sure Profile in the report, IDC, Synthetic Identity Fraud Update: Effects of COVID-19 and a Potential Cure from Experian (doc #US46690220, July 2020) stating “IDC Financial Insights believes that Experian’s Sure Profile has the potential to have market disrupting effects in the battle against SIF (synthetic identity fraud).”
According to McKinsey, synthetic identity fraud is the fastest growing financial crime in the United States, accounting for 10% to 15% of lender losses each year. Synthetic identity fraud occurs when fraudsters combine real and fake information to create “Frankenstein IDs” which are then used to obtain credit or to add these identities as authorized users to existing credit accounts. Then, financial institutions report the identities to credit reporting agencies. A new record with the false information is created and subsequently, the synthetic identity can be used to generate other fake accounts. It is a significant problem that Juniper Research expects will lead to $48 billion in annual online payment fraud losses by 2023.
IDC recommends that financial institutions consider Sure Profile when researching how to fight synthetic identity fraud. For institutions that use an analytical platform to detect synthetic identities, IDC suggests examining Sure Profile to see how it can supplement their models, or even replace them.
“Synthetic identity fraud is a massive problem for banks, and I believe that the effects of COVID-19 will exacerbate the problem. However, at the same time, Experian launched a new offering that I believe will be a game changer for how banks attack the synthetic identity problem.” — Steven D’Alfonso, research director, IDC Financial Insights
Sure Profile validates identities, detects profiles that have an increased risk for synthetic identity fraud and helps cover resulting losses for assured profiles. Leveraging the capabilities of the Experian Ascend Identity Platform™, it uses data to drive advanced analytics, including newly developed machine learning models that predict the likelihood of synthetic identity behavior. Sure Profile provides lenders a simple approach to define and detect synthetic identities early in the originations process.
To learn more, check out Experian’s Sure Profile.