17 May, 2016
category: Corporate, Digital ID, Financial
Online identity verification is tricky and companies are tackling this a number of different ways. Equifax unveiled its latest too to help communications and media companies protect against identity fraud.
FraudIQ Identity Score is a predictive identity fraud score that offers analytics, based on identity linkage and behavior modeling, to help better detect and prevent third-party fraudulent activity during customer acquisition and account opening.
When opening a new account, FraudIQ takes Equifax data assets and reviews different identity attributes and gives a score of whether or not the person is who they claim to be, says Gasan Awad, vice president of Fraud and Identity Product Management at Equifax.
It then reports a score back to the company — red, yellow or green – which advises them on next steps as well as a reason code that explains the score. Green means the company is good to proceed, yellow means they might want to get a little more information and red means stop. “At the end of the day fraud is only 1% to 2% and you need to get the other 98% through right away,” Awad explains.
If the score comes back yellow or red the organization can ask for more info – such as knowledge-based authentication – or another authentication type, Awad says.
Reducing fraud at the point of account activation helps curtail revenue loss as well as potential scrutiny from rising identity fraud rates. By using real‐time identity linkages, FraudIQ Identity Score can provide the ability to help identify synthetic and true name fraud.
FraudIQ Identity Score also helps prevent loss of revenue from consumer abandonment due to onerous and time-consuming verification processes. The solution helps providers reduce manual reviews that increase client acquisition costs and leverages advanced keying logic from Equifax to validate components of an applicant’s identity. This keying technology drives down the number of false positives that normally accompany fraud products.
Equifax customer validation studies have shown that decisions based on high-quality data about an individual from multiple data assets, and advanced analytics, can result in an almost 25% reduction in false positive rates, which can lead to lower overhead costs to the provider.
