Experian can help you predict and manage fraud to minimize impact
It is estimated that one in four people is a victim of fraud, while, globally, merchants are expected to incur around $325 billion in fraud costs and losses every year. Fraud is a huge issue that is on the rise. Economic decline makes the prospect of committing fraud more attractive, which is fueled by increasing numbers of online transactions that do not need to be conducted face to face. There is a constant, ongoing battle between fraudsters and legitimate businesses, particularly in the area of digital security.
There is a high social and financial cost to fraud that impacts both organizations and individuals. Hundreds of fraudulent techniques exist, which include anything from theft of a credit or debit card, tax evasion, claims fraud, advertising goods and services that don’t exist, falsifying information, or stealing another’s identity for gain. How do you assess the risk of fraud effectively to ensure you are protecting your customers or yourself?
There are a number of challenges involved in assessing the risk of fraud. For starters, how do you automate the detection process so that fraud is flagged correctly? How do you ensure that your fraud-detection team is concentrating on the most important areas? How do you decrease “false positives,” where time is wasted investigating cases that are not really fraudulent at all? Fraud investigation is costly and time-consuming, so it’s essential to be able to prioritize high-value cases in order to use your resources effectively. In many countries, legislation must be considered as it restricts organizations from declining customer applications on suspicion of fraud without conducting an investigation.
In addition to this, your customers will want instant decisions about their applications or real-time transactions. Unfortunately, there is a trade-off between speed and fraud prevention. Your organization will need to make fast decisions that are unobtrusive to the customer and don’t compromise company policies or fraud protection. Turning down a customer on suspicion of fraud could lose you revenue now and in the future from someone who potentially could be a long-term customer. Monitoring fraud techniques is the only way to stay one step ahead by preventing and detecting fraud.
Fraud detection and identity management products or services permeate throughout Experian, enabling companies to detect, monitor and assess the risk of fraud at every stage of their customer relationship. Experian can help you:
Detect cases of fraud – we support your fraud detection systems throughout the customer journey, from knowing the customer’s identity, through accepting his or her application, to growing the business by cross-selling to customers with authenticated identities.
Automate fraud risk assessment – our systems flag the possibility of fraud. For example: a woman claims an annual income of $97k when she applies for a mortgage, but in a previous application, she stated that she was earning half of that. We can highlight this and other suspicious behavior, enabling the investigation team to concentrate on these high-risk cases and allowing genuine customers to receive great service.
Predict the likelihood of fraud – our analytics can help you evaluate the risk of fraud to support prioritization of cases and effective use of operational resources.
Reduce many types of fraud – we concentrate on reducing application fraud, retail and ecommerce fraud, money laundering, false-work-history fraud, and, in some regions, open-account fraud.
Share information – in a growing number of countries, we have set up fraud detection schemes shared by a number of organizations in a sector. These organizations see the fight against fraud as a battle that requires cooperation with their competitors.