Application & Identity Fraud

Data breaches have given criminals access to more personal information than ever before. Armed with this information, they steal real peoples’ identities or construct synthetic identities. The move to a digital economy, where applications often happen online, means little face-to-face interaction. This gives fraudsters the ability to hide behind stolen or fabricated identities. They use these identities to open accounts and access money, goods and services they have no intention of repaying. If application fraud is not prevented, it quickly:

• Reduces profitability
• Increases fraud disguised as bad debt
• Damages your reputation

It is vital to stop fraudsters at point of origination. Decisions driven by machine learning analytics and fuzzy matching ensure businesses can say yes to more of their legitimate customers while turning away the fraudsters. FICO^® Application Fraud Manager is designed to:

• Stop application fraud at point of origination – whether driven by; identity theft, synthetic identities, bustouts, or straightrollers.
• Deliver an enterprise platform for real-time fraud decisioning that is product and channel agnostic.
• Provide flexible data orchestration to leverage internal and third-party data and scores with an extensible framework to facilitate integrated decisioning.
• Leverage superior machine learning analytics built on over 3,000 person-years of fraud R&D, a framework of best-in-class fuzzy matching and policy strategies intuitively configurable by your fraud strategy team, and optimized investigation features to promote faster, more accurate, and smarter decisions.
• Deliver a streamlined experience to legitimate customers.
• Give full customer lifecycle, identity-based threat monitoring capabilities across both risk and fraud systems.

Tackling fraud rings

Brute force application fraud attacks are a new norm. Perpetrated by organized criminals, a sustained attack sees losses quickly multiply – millions lost in the matter of days. The attacks are both systemic and methodical, but the most common identifying features are velocity and recycled personally identifying information. Spotting repeated information – whether exact or fuzzy - uncovers the wider web of data that strings together a criminal enterprise. FICO helps you automate this to:

• Identity reused data points that uncover accounts opened by a criminal network.
• Leverage these features proactively in machine learning models and rules based strategies.
• Visualize relationships across applications and accounts to perform root cause analysis, and understand where risk remains.
• Operationalize this intelligence by accurately distinguishing fraud risk from bad debt to appropriately segment strategies including credit line increases, payment protections, and collections.