What if you could tap into a cross-channel fraud platform that would do a better job of authenticating consumers -- even validating their
devices -- and battle identity fraud? Experian claims to have such a platform, thanks, in part, to a recent acquisition.
Experian already had Precise ID, a risk-based authentication service, up and running. But the global information services company has combined it with FraudNet, a global fraud detection and prevention service from the recently-acquired device recognition and intelligence firm 41st Parameter.
Call it synergy. The combination gives enterprises a way to authenticate consumers at multiple touchpoints online. The promised results are fourfold: drastically reducing false positives in fraud processes; improving operational efficiencies; preserving a positive customer experience; and ultimately increasing revenues.
Why It’s So Hard
“Managing fraud risk and protecting customer identities are becoming more complex as the opportunity for fraud has increased with the proliferation of mobile devices being used for online transactions,” said Adam Fingersh, Senior Vice President of Experian Decision Analytics. “Organizations need to confidently authenticate consumers without affecting their overall customer experience.”
Indeed, Experian sees a real need for this solution. The company is witnessing the rising pressure enterprises are facing to authenticate consumers in non-face-to-face channels while protecting their brands from vulnerabilities and fraud-related financial losses.
Part of the issue, as Experian sees it, is the increasing challenge of setting up accurate fraud detection processes in the face of the rapid adoption of mobile and online channels. Another challenge comes from fraudsters themselves, who are rolling out more sophisticated techniques to fool consumers and IT admins.
How Experian Does It
How does Experian Precise ID with FraudNet platform make good on its fourfold promise? With a highly-configurable rules-based engine that aims to balance an individual business’ needs and fraud-risk appetite.
One of the key features, of course, is identity authentication. Experian’s approach takes into account credit data, non-credit data, questions, scores and analytics, leveraging Experian’s analytics and scoring technology.
On the device intelligence front, the platform leverages over 100 attributes and over 500 actionable rules to recognize known returning customers, authenticate new legitimate customers and flag fraudulent threats -- without cookies. A link analysis tool identifies common customer information and billing data, such as name, multiple phones, multiple addresses and multiple e-mail addresses from the same device.
A rules engine can be configured to a company’s risk appetite to manage cross-channel risk in a portfolio. Finally, an “investigator workbench” streamlines case management through an online user interface. The platform also uses detection tools and full audit trails to slash investigator training times, cut the volume of manually reviewed transactions, and save time and resources in the review process.