ATLANTA, July 21, 2021 /PRNewswire/ -- LexisNexis®
Risk Solutions today unveiled a new product designed to help
businesses mitigate synthetic identity fraud. LexisNexis® Fraud
Intelligence Synthetic Score analyzes hundreds of unique identity
characteristics and events to help businesses identify
inconsistencies and fraud patterns in application profiles. The
tool utilizes data sets and high-powered analytics to examine
application profiles associated with synthetic fraud to arrive at a
three-digit numeric risk score ranging from 001 – 998.
The LexisNexis Fraud Intelligence Synthetic Score goes beyond
traditional pass/fail criteria for applicant verification to
provide fraud risk warning intelligence to investigative teams for
more efficient application review. The solution predicts the
likelihood an application will result in fraud: The lower the
score, the lower the risk.
Synthetic fraud on the rise
"Given the ease with which crime rings have been able to establish
synthetic identities, this attack vector is a massive problem in
the U.S. market," said Julie Conroy,
research director for Aite Group. "Aite Group estimates that
synthetic identity fraud for unsecured U.S. credit products will
total $2.04 billion in 2021, and it
will grow to $2.42 billion in 2023.
These estimates are conservative – if the amount of credit
charge-offs attributable to synthetics are indeed in the 10% to 15%
range that we've heard from many issuers, then the losses could be
as high as $6 billion."
The Federal Reserve recently acknowledged the seriousness of
synthetic identity fraud by working with a group of industry fraud
experts including Jeffrey Feinstein,
PhD, vice president of advanced analytic strategy at LexisNexis
Risk Solutions, to publish a new, industry-recommended definition.
The effort was meant to improve synthetic identity fraud detection,
measurement and mitigation across the payments industry.
The resulting industry-recommended definition of synthetic
identity fraud is the fraudster's use of a combination
of personally identifiable information (PII) to fabricate
a person or entity to commit a dishonest act for personal or
financial gain. For example, fraudsters may create synthetic
identities using potentially valid PII such as a social security
number and combine it with false personally identifiable
information such as a fake address or phone number.
The Fraud Intelligence Synthetic Score helps businesses better
predict and prevent the main drivers of synthetic fraud that erode
profitability. It delivers a solid foundation for fraud prevention
that aligns with core operational and risk strategies, allowing
businesses to quickly ascertain fraud threats and manage
exceptions.
"Fraud continues to grow significantly in terms of attacks and
costs, making identity verification, fraud detection and customer
friction harder to balance," said Kimberly
White, senior director of fraud and identity for LexisNexis
Risk Solutions. "Synthetic identity fraud has become the preferred
method for many criminals and we are pleased to bring to market a
solution that provides a robust view of identity and fraud behavior
to help address the escalating synthetic identity fraud problem in
the U.S.
"It is of paramount importance for organizations to layer
advanced identity and fraud transaction risk solutions," White
continued. "Those that use this approach experience fewer issues
and a lower cost of fraud. The unification of three of the
industry's leading and trusted authorities in identity –
LexisNexis Risk Solutions, ID Analytics® and Emailage® – has
created a synthetic risk score with fraud detection capabilities,
which can significantly help businesses improve the identification
of fraudulent applications."
LexisNexis Risk Solutions continues to lead the industry by
delivering disruptive innovation and executing on a unified fraud
prevention strategy. In 2020, through its parent company RELX, the
company acquired key industry leaders ID Analytics and Emailage.
Fraud Intelligence Synthetics Score serves as an example of how
LexisNexis Risk Solutions has utilized these acquisitions to create
a robust view of identity.
About LexisNexis Risk Solutions
LexisNexis® Risk Solutions harnesses the power of data and advanced
analytics to provide insights that help businesses and governmental
entities reduce risk and improve decisions to benefit people around
the globe. We provide data and technology solutions for a wide
range of industries including insurance, financial services,
healthcare and government. Headquartered in metro Atlanta, Georgia, we have offices throughout
the world and are part of RELX (LSE: REL/NYSE: RELX), a global
provider of information-based analytics and decision tools for
professional and business customers. For more information, please
visit www.risk.lexisnexis.com and www.relx.com.
Media Contact:
Marcy
Theobald
678.694.6681
Marcy.Theobald@lexisnexisrisk.com
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