According to TransUnion research, more than $1.6 billion was lost by companies due to credit card application fraud in 2016 alone. While a significant amount, it’s just a fraction of the overall cost burden impacting consumers, government organizations and businesses from diverse industries, such as healthcare, retail, credit card and consumer lending.
Fraud today doesn’t just impact businesses’ bottom lines with current customers, it also causes loss related to missed opportunities when frustrated customers walk away, and from back office expenses incurred to manually review fraud.
As fraud evolves and becomes more sophisticated, the legacy systems many businesses have in place aren’t sufficient in detecting today’s fraudsters.
In response, TransUnion unveiled IDVisionSM, a suite of solutions providing businesses with a holistic approach to fraud and identity management, in order to stop sophisticated and evolving fraud while also protecting true customers.
IDVision brings together robust data assets, advanced analytics and leading technology to link, interpret and discover anomalies and patterns of risk. Businesses receive actionable alerts and instantly delivered scores so they can make timely decisions.
We developed IDVision to provide greater certainty as fraud evolves – while still meeting the expectations of speed and the uninterrupted consumer experience our customers need. Our solution learns and predicts patterns of risk to help customers more strategically anticipate tomorrow’s threats by staying ahead of fraudsters today.
As a result, companies across various industries can identify more good consumers to enable secure, confident and convenient authentication. Additionally, they can detect more fraud patterns at origination, during transactions and by monitoring portfolios – allowing them to improve the customer experience.
IDVision Addresses Latest Fraud and Identity Theft Issues
TransUnion’s IDVision suite is comprised of multiple solutions, addressing a variety of critical issues in the fraud and identity management space. For instance, the Synthetic Fraud Model addresses the key question of whether an identity has been fabricated or manipulated. Digital Verification and Authentication solutions ensure consumers are who they say they are by examining hundreds of digital signals captured during an online or mobile transaction.
IDVision also includes the recently launched Fraud Prevention Exchange, a first to market solution designed to help established lenders, such as credit card issuers as well as emerging FinTech lenders, combat online, first-party fraud by monitoring application velocity and reported fraud in real time.
Increasing Approvals While Stopping Fraud
A top 20 regional credit card provider recently utilized solutions from IDVision because it was incurring major fraud losses, in large part due to growing digital acquisitions. After implementing IDVision’s fraudulent charge-off score, the issuer was able to pinpoint specific fraud behaviors earlier, before balances spiked and damage was done.
With a new customer management strategy using this score to limit exposure, the issuer achieved strong digital growth while reducing fraud losses, including:
- 15% portfolio growth while reducing total fraud losses by 10%
- $1.36 million annual cost savings enabled
“As businesses seek to meet aggressive revenue growth targets with new customer acquisition, they have struggled to verify the identities of new prospects and customers wishing to sign up through digital channels,” wrote analysts Andras Cser and Merritt Maxim in the November 2016 Forrester report, Breakout Vendors: Social Identity And Eligibility Verification (SIDEV).
Further, the Forrester report noted, “Companies are finding that using only credit-file header data to verify an online user's identity is no longer sufficient to protect against fraud. Forrester's interviewees indicate they want to know about the user's device reputation and phone number reputation, and also conduct risk scoring on any fraudulent activity related to the customer's provided home address.”
Another recent example of IDVision’s power occurred when TransUnion correctly identified 95% of fraud cases for an auto lender. At an estimated average of $22,000 per loan with no recovery, averted losses would save almost $2 million for every 100 cases. Losses such as this are due to synthetic fraud and fraudulent loan stacking – threats addressed by the IDVision suite.
At TransUnion, our mission is to deliver fraud solutions that enable businesses and consumers to create and maintain trusted relationships with each other. This can only be achieved by building trust through security, convenience and confidence – all of which are offered through the IDVision suite of solutions.
For more information about IDVision, visit www.transunion.com/idvision.