Fraudulent account activity and identity fraud are both significant drains to today’s business resources. In the era of online and mobile commerce, it’s more important than ever for companies to make sure business transactions are being done with a real person and with the right person. Yet, many intrusive verification processes end up creating customer abandonment or delaying account acquisition, ultimately driving up costs of customer acquisition and operations.
Javelin Strategy & Research has estimated that new-account fraud will soar 44% between 2014 and 2018, rising from $5 billion in annual losses to a projected $8 billion. To combat that companies are looking for ways to balance the competing priorities of reducing fraud losses, maximizing the customer experience and minimizing operating costs. Equifax fraud expert, Gasan Awad, was recently quoted in SecureIDNews speaking about how to create that balance.
When opening a new account, FraudIQ Identity Score 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….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.
Quickly identifying both fraudulent behavior as well as good customers at the same time is crucial when you are opening new customer accounts, extending credit or selling goods. Actionable and timely insights into an identity will provide the confidence you need for real-time decisions in today’s fast paced economy. Questions you should ask yourself when setting up your fraud prevention program include:
- What do fraudsters look for when engaging in application fraud?
- How to set up sophisticated and effective rules for singling out suspicious applications?
- What are best ways to optimize the customer experience during account applications?
- How to best leverage big data to improve the accuracy of fraud detection and prevention?
To learn more about preventing identity fraud and slowing fraud revenue loss, contact an Equifax specialist.