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Fraud Prevention - Experian
- 2. 2©2015 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
Online trends are shifting the way our clients
conduct business
36%
of U.S. organizations interact
with customers in five or more
channels.
87%
Feel upset, frustrated or
betrayed when an online
transaction is declined
10,000
Estimated number of fraud
rings in the U.S. alone
2 Billion
The number of records exposed as a
result of data breaches in 2014
Source: 41st Parameter, Measuring Consumer Attitude on CNP Credit Card Declines
(December 2013)
Source: Experian, The 2013 Digital Marketer (2013)
Source: Risk Based Security/Open Security Foundation, Data Breach Quick View
(February 2014)
INDUSTRIALIZATION OF FRAUD RISE OF OMNI-CHANNEL
DATA BREACHES CUSTOMER INFORMATION
- 3. 3©2015 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
Evolving e-commerce space needs to protect online
consumers
Source: Experian, The 2013 Digital Marketer (2013)Source: Cybersource 2013 Online Fraud Report (2013)
35%
Year-over-year growth
in mobile commerce
Mobile payment options used by smartphone owners
5%
Waving the
phone at a
payment kiosk
11%
Direct mobile
billing
14%
Mobile Web
payments or
WAP
15%
SMS text
message to a
business
2x
The international
fraudulent order rate
compared to the
domestic rate
Source: 41st Parameter Study
(December, 2013)
International
Domestic
Combined
Mobile
20%
EVOLUTION OF PAYMENTCROSS-BORDER COMMERCE
MOBILE COMMERCE
Non-mobile
Smartphone
Tablet
Non-Mobile
85%
Non-Mobile
80%
Combined
Mobile
15%
10%
5% 8%
12
%
- 4. 4©2015 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
Consumers are being targeted – by everyone
The number of identity data sources is growing
V E H I C L E
R E G I S T R AT I O N
D E M O G R AP H I C
D ATA
C R E D I T
I N F O R M AT I O N
C H E C K I N G &
S AV I N G S
AC C O U N T S
S O C I A L
S E C U R I T Y
INTERNET
TRANSACTIONS
PROFESSIONAL
ASSOCIATIONS
M E D I C A L
R E C O R D S
- 5. 5©2015 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
How does this impact client-centric fraud strategies?
Reduces complexity of customer interactions
and increases straight through-processing
Promotes compliance with (KYC) Know Your
Customer policies and regulations
ENTERPRISE VIEW
INCLUDING TRANSACTION
& IDENTITY RISK
IDENTITY ELEMENT
VALIDATION AND VERIFICATION
Tailored compliance-oriented decisioning
strategies
Ability to recognize devices used by
customers providing a safe and effective
customer experience
DEVICE INTELLIGENCE AS AN
INTEGRATED CAPABILITY
Apply analytics to instantly quantify risk
with behavioral pattern detection and
predictive scoring
KNOWLEDGE-BASED
AUTHENTICATION (KBA)
JOINED WITH ANALYTICS
CUSTOMER EXPERIENCE
DRIVING ROI
Limit friction by leveraging existing information
and risk-based authentication
Effectively assess risk across all channels
Minimize exposure and accelerate resolution
in event of a data breach
- 6. 6©2015 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
Authentication
Current and future state
IDENTITY,DEVICE
& ACCOUNT DATA
IDENTITY,DEVICE
& ACCOUNT DATA
IDENTITY,DEVICE
& ACCOUNT DATA
RESULTS AND/OR
DECISION
CONSUMER ALERT
CONSORTIUM
DATA
CLIENT FRAUD ALERT TRIGGERS
CONSUMER AND CLIENT CONFIRMATION OF FRAUD ACTIVITY
CONSUMER
OR CLIENT-
INITIATED
ACQUISITION
OR ACCOUNT
TRANSACTION
AUTHENTICATION
PLATFORM
PII data verification
Identity transactions
and link analysis
Analytics
Knowledge-based
authentication
Decisioning
- 8. 8©2015 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
Using risk-based authentication to combat fraud
Reduce fraud while increasing
straight-through processing and
quality of interactions across all
channels
IDENTITY
VERIFICATION
RISK-BASED
AUTHENTICATION
DEVICE
INTELLIGENCE
AND RISK
FRAUD
CONSULTING
STRATEGY DEVELOPMENT
- 9. 9©2015 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
Know your customer
While delivering a positive experience
I D E N T I T Y V E R I F I C A T I O N
H O W W E H E L P
Identity verification
Out-of-wallet, knowledge-based
authentication
Three factor authentication
KYC (Know Your Customer)
compliance
VA L U E D E L I V E R E D
Reduce losses from identity fraud
Maximize straight-through
processing
Improve customer satisfaction
Improve staffing efficiency
Ensure compliance
KNOWLEDGE
IQSM
PRECISE ID®
FOR
COMPLIANCE
PRECISE ID® FOR
ID SCREENING
- 10. 10©2015 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
Identity verification
PRECISE ID® FOR
COMPLIANCE
KNOWLEDGE IQSMPRECISE ID® FOR
ID SCREENING
SINGLE-PLATFORM, HOSTED
solution that operates across
product lines, enabling robust
fraud prevention and consumer
authentication
EFFICIENT WORKFLOW via
streamlined and relevant output
specific to identity element
verification
COMPREHENSIVE
AUTHENTICATION with
out-of-wallet questioning
Delivers REAL-TIME OR BATCH
IDENTITY authentication services
over customer lifecycle process
points
FRAUD SHIELDSM indicators and
high-risk condition warnings
SINGLE-PLATFORM, HOSTED
solution
Delivers REAL-TIME OR BATCH
IDENTITY authentication services
over customer lifecycle process
points
Identity and identity element
validation and verification results
via PRECISE MATCHSM
DETAILED REPORTING and
consultative resources
DEVICE INTELLIGENCE and
risk assessment, evolutionary
platform
KNOWLEDGE-BASED
authentication as part of layered,
risk-based authentication
strategy via a SINGLE SaaS
PLATFORM
USE OF EIGHT DATA
SOURCES, providing multiple
categories of questions to
authenticate identity and prevent
fraud
Consultative approach to
OPTIMIZE KBA (Knowledge-
Based Authentication) through
performance monitoring and
analysis
HIGHLY CONFIGURABLE to
address business needs,
FLEXIBLE to adjust as needs
evolve
- 11. 11©2015 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
Summary &
Next Steps
Precise ID®
for Compliance
How it works
PRECISE ID®
FOR
COMPLIANCE
An integrated component of the Precise ID platform solution that
brings together identity element validation and verification,
and GLB (Gramm-Leach-Bliley) - compliance authentication
and decisioning, into a single process to measure the risk of
identity and first-party fraud.
ACCEPT
REFER SUMMARY MATCH
RESULTS
DETAILED RECORD INFO
CREDIT PROFILE
HIGH-RISK INDICATORS
CONSUMER
DEMOGRAPHIC
DATA
EXPERIAN
FILE ONESM
DATABASEINQUIRY
PUBLIC &
PRIVATE
DATA
PRECISE ID
RULES
ENGINE
C U S TO M
D E C I S I O N
RESULTS
APPROVE
REFER
P R E C I S E M AT C H
- 12. 12©2015 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
Knowledge IQSM
How it works
Q U E S T I O N S
G E N E R AT E D
PASS
NAME + ADDRESS
MORE INFO AS AVAILABLE
P E R F O R M A N C E R E P O R T I N G
A dynamic identity tool that evaluates true consumers by
questions generated from a wide dataset of personal information
and is used in combination with an identity-based risk score.
.
D E C I S I O N
KNOWLEDGE
IQSM
S C O R E & Q U I Z
E VAL U AT E D
WEBSITE
CALL
CENTER
FACE TO
FACE
NO
PASS
- 13. 13©2015 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
Defend individuals
From identity and card theft
R I S K - B A S E D A U T H E N T I C AT I O N
H O W W E H E L P
Surveillance for unauthorized use of
identity information
Lost or stolen wallet protection
Change of address monitoring
Daily monitoring of credit reports
with alerts when key changes occur
Dedicated fraud resolution team
VA L U E D E L I V E R E D
Reduce risk of identity theft
Receive protection against losses
Protect your reputation
Reduce exposure and accelerate
resolution in the event of a breach
KNOWLEDGE IQSM
PRECISE ID® FOR
ACCOUNT
OPENING
BizIDSM
IDENTITY
ELEMENT
NETWORKSM
- 14. 14©2015 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
Summary &
Next Steps
Precise ID®
for Account Opening
How it works
PRECISE IDSM
FOR
ACCOUNT
OPENING
An integrated component of the Precise ID platform solution that
brings together identity element validation and verification
and Fair Credit Reporting Act (FCRA)-compliant
authentication scoring and decisioning into a single process
to measure the risk of identity and first-party fraud.
P R E C I S E
M A T C H
PRECISE
MATCHSM CODES
HIGH-RISK
ATTRIBUTES
INTERNAL
CHECKS
EXTERNAL THIRD
PARTY CHECKS
RISK
SEGMENTATION
& DELIVERY
S C O R E
G E N E R A T I O N
GLB DATA
REAL-TIME
SINGULAR
INQUIRY/
RESPONSE
BATCH
AVAILABLE
PRECISE ID
DECISION
APPROVE
REFER
CAN BE COMBINED WITH FRAUDNET
A D D I T I O N A L
C H E C K S
- 15. 15©2015 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
Precise ID for Account Opening
Key benefits
Streamline new account opening processes with increased verification
efficiencies while minimizing fraud loss with an early warning service and
meeting compliance requirements
Gives a
more
accurate
and holistic
picture of
consumer/
applicant
Provides early
warning of risk
of identity
alteration or
inconsistencies
Receive
summary-
level match
results
related to
identity
elements
Targets
identity theft
and potential
first-party
fraud and
non-payment
risk using
credit/non-
credit data
Quick
implementation
via Web-user
interface
Integrate
seamlessly
with internal
or consumer-
facing platforms
via XML
XML
XML XML
Receive
authentication,
identity theft
and first
payment
default scores
560
630
700
- 16. 16©2015 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
Precise ID for Account Opening
Capabilities
Precise ID for Account Opening uses both credit and non-credit data assets
CAPABILITY
PRECISE IDSM FOR
ACCOUNT OPENING
Identity element validation and verification
Fraud ShieldSM high-risk indicators
Hosted decisioning
Wireless phone verification
IP address verification
Knowledge IQSM questions
Historical inquiry records checks
Authentication score
Identity theft score
First payment default score
National Fraud DatabaseSM
Early Warning Services shared fraud and account abuse records
Functionality using credit and non-credit data assets
- 17. 17©2015 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
I D E N T I T Y T R A N S A C T I O N N E T W O R K
Identity Element Network
Identity Transaction Network
Adding over
two million
identity
transaction
records daily
Comprehensive
link analysis to
derive attributes
and score
Contains
up-to-date
transactional
data
Built from
Experian
data
Capture
consumers’
identity
elements
Retain
records 24
months for
identity
historical
view
Score –
portfolio/
batch
segmentation
- 18. 18©2015 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
Improve detection
Reduce false positives, customer frustration & lost sales
D E V I C E I N T E L L I G E N C E & R I S K
H O W W E H E L P
Application and open account fraud
detection
Automated risk assessment and
issue resolution
Case management, archiving,
searching link analysis and data
visualization tools
VA L U E D E L I V E R E D
Reduce fraud losses, bad debt and
revenue leakage
Improve the quality of the customer
experience with straight-through
processing
Avoid lost sales from false positives
and abandonment
Reduce referrals and manual reviews
DEVICE
INSIGHT™
FRAUDNET
TRUST INSIGHT®
- 19. 19©2015 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
Device intelligence and risk
DEVICE INSIGHT™ TRUST INSIGHT®
FRAUDNET
INCREASE customer satisfaction,
retention and LTV – turning first-
time customers into trusted
customers
Network effect of POOLED DATA
DECREASE COSTS of
investigations and handling by
decreasing order ship time (OST),
touch rates and operational costs
of investigations
Countermeasure to CNP losses –
POST EMV CHIPS & PIN
DEVICE LAYER enables velocity
rules, negative lists and detection
of aggressive devices
INCREASES detection rates (bad
devices) and DECREASES false
positives (good devices)
Works across ALL DEVICES and
ALL OPERATING SYSTEMS
IMPERCEPTIBLE to fraudsters
Meets FFIEC requirements and
does not collect PII data
Ability to detect fraud ON
FIRST ATTEMPT
INCREASES top-line revenue
UNPRECEDENTED
VISIBILITY to online activities.
MULTI-LAYERED SECURITY
dramatically reduces false
positives and improves
detection rates in challenging
environments
Detects nearly 100% of certain
SOPHISTICATED ATTACK
TYPES
.
- 20. 20©2015 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
FraudNet
How it works
ULTIMATE
DEVICE INTELLIGENCE
ACCURATE
RULES ENGINE
SOPHISTICATED
LINK ANALYSIS
POWERFUL
INVESTIGATOR WORKBENCH
Market leading enterprise fraud management solution with a
highly accurate, device intelligence platform to detect fraud by
linking event traffic.
FRAUDNET
- 21. 21©2015 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
FraudNet
Features
ULTIMATE
DEVICE INTELLIGENCE
ACCURATE
RULES ENGINE
POWERFUL
WORKSTATION
Flexible & CONFIGURABLE
Enables BETTER decision
making
3rd party data with FULL
audit trail
LINK analysis tools
Highly ACCURATE, high
performance
STRATEGY driven risk
models with over 500 rules
USER configurable
Effective across ALL internet
channels – OS & browser
agnostic
PRIVACY compliant (no PII),
frictionless, tag-less and
covert
PATENTED technology
- 22. 22©2015 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
Complex to Confident in action
Improved audit
trail satisfies
regulatory
compliance
Booked
accounts
increased by
2-3% of the
portfolio
Streamlined,
consistent
authentication
system
enhances
efficiency
40% reduction
in manual
verification of
identity
discrepancies
S O L U T I O N
Experian’s Global Consulting Practice and Precise ID platform.
Intelligent automation made processing more efficient to identify
false positives
A financial company needs to simplify its
verification system
25% of customers require manual verification
Delays due to this process caused the loss of significant
customers
B U S I N E S S C H A L L E N G E