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Fraud &
Ident i ty
Chal lenges
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
10,000Estimated number of fraud
rings in the U.S. alone
2 BillionThe 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
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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
2xThe international
fraudulent order rate compared to the
domestic rate
Source: 41st Parameter Study (December, 2013)
InternationalDomestic
Combined Mobile20%
EVOLUTION OF PAYMENTCROSS-BORDER COMMERCE
MOBILE COMMERCE
Non-mobile
Smartphone
Tablet
Non-Mobile85%
Non-Mobile80%
Combined Mobile15%
10%5% 8%
12%
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Consumers are being targeted – by everyoneThe 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 A P H I CD ATA
C R E D I T I N F O R M A T I O N
C H E C K I N G & S AV I N G S
A C C O U N T S
S O C I A L S E C U R I T Y
I NT E R NE TT R A N S A C T I O N S
PROFESSIONALASSOCIATIONS
M E D I C A L R E C O R D S
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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
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AuthenticationCurrent and future state
IDENTITY,DEVICE& ACCOUNT DATA
IDENTITY,DEVICE& ACCOUNT DATA
IDENTITY,DEVICE& ACCOUNT DATA
RESULTS AND/ORDECISION
CONSUMER ALERT
CONSORTIUM DATA
CLIENT FRAUD ALERT TRIGGERS
CONSUMER AND CLIENT CONFIRMATION OF FRAUD ACTIVITY
CONSUMER OR CLIENT-INITIATED
ACQUISITION OR ACCOUNT TRANSACTION
AUTHENTICATIONPLATFORM
PII data verification Identity transactions
and link analysis Analytics Knowledge-based
authentication Decisioning
7©2015 Experian Information Solutions, Inc. All rights reserved.Experian Public.
Fraud &
Ident i ty
Capabi l i t ies
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
IDENTITYVERIFICATION
RISK-BASED AUTHENTICATION
DEVICE INTELLIGENCE
AND RISK
FRAUD CONSULTING
S T RAT E G Y D E V E L O P ME N T
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Know your customerWhile 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
V A 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
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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
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Summary &
Next Steps
Precise ID® for ComplianceHow 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
EXPERIANFILE ONESM
DATABASEINQUIRY
PUBLIC &PRIVATE
DATA
PRECISE ID RULES ENGINE
C U S T O MD E C I S I O N
RESULTS
APPROVE
REFER
P R E C I S E M A T C H
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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 VA L U AT E D
WEBSITE
CALL CENTER
FACE TO FACE
NO PASS
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Defend individualsFrom identity and card theft
R I S K - B A S E D A U T H E N T I C A T 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
V A 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
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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 AT I O NGLB 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
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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
XMLXML XML
Receive authentication, identity theft and first payment default scores
560
630700
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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
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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 NetworkIdentity 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
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Improve detectionReduce 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
V A 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®
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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©2015 Experian Information Solutions, Inc. All rights reserved.Experian Public.
FraudNetHow it works
ULTIMATEDEVICE INTELLIGENCE
ACCURATERULES ENGINE
SOPHISTICATEDLINK ANALYSIS
POWERFULINVESTIGATOR WORKBENCH
Market leading enterprise fraud management solution with a highly accurate, device intelligence platform to detect fraud by linking event traffic.
FRAUDNET
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FraudNetFeatures
ULTIMATEDEVICE INTELLIGENCE
ACCURATERULES ENGINE
POWERFULWORKSTATION
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
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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 NExperian’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
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