LexisNexis® Fraud Intelligence

Identity fraud presents a significant challenge for today’s financial services and lending firms. Identity verification and authentication solutions that worked in the past may not be a match for today’s more sophisticated identity fraud attacks. Criminals have upped their game. At the same time, new technologies make it easier for them to evade detection through current risk management processes.

A common reaction is to impose more rigorous security measures to keep fraudsters out. But too often these measures have high false positive rates – and any time you make legitimate customers jump through hoops or delay their application from being approved, you risk having them abandon the process.

LexisNexis Fraud Intelligence brings a new dimension to traditional fraud detection tools by offering unique insights into identity event and consumer application activity. Better intelligence from a cross-vertical perspective can strengthen your identity fraud risk detection and investigation strategy.

Fraud Intelligence can be used in conjunction with your existing workflows and risk strategies. Your organization can defend against a wider range of attacks and achieve the following objectives by layering Fraud Intelligence into your current fraud and identity workflows:

• Reduce losses by blocking fraudulent applications
• Simplify account opening for legitimate customers
• Improve operational efficiencies
• Reduce false positives that drain investigative resources
• Be prepared to block newly emerging fraud threats
• Decrease reputational risk

LexisNexis Fraud Intelligence analyzes hundreds of unique identity characteristics, identity application behaviors and identity events to provide real-time insight into application fraud risk. It’s able to detect inconsistencies and recognize fraud patterns in application profiles that other fraud tools miss. It delivers the following outputs to better detect fraudulent applications:

• Fraud Three-Digit Risk Score – Provides an up-to-date view of identity fraud risk behavior. It predicts the likelihood an application will result in fraud if the account is opened.
• Warning Codes – Identifies the specific fraud risk requiring further investigation.
• Attributes - Enhances fraud detection capabilities with approximately 300 attributes for a more complete view of identity fraud. 

As fraudsters have evolved their attacks on enterprises, new technologies have emerged to provide more insights into the digital and physical identity of users – be the new applicants or individuals claiming to be customers. Taken as a whole, these technologies provide the insights needed to develop trust in a consumer identity.

Unfortunately, these insights are scattered across various point providers, making it challenging to bring together the full picture needed to establish identity trust. While some platforms have emerged that provide access to a range of third-party point solutions they don’t control, organization haven’t been able to produce and deliver these insights together.

 The LexisNexis® Fraud Intelligence Third-Party Fraud Scores are fueled by the powerful combination of:

• A vast set of identity information
  
• Advanced linking technology
  
• Cross-industry, contributory fraud intelligence that includes identity application behavior 

LexisNexis Risk Solutions has long been the leader in physical identity events through its access to billions of identity records, as well a pioneer and leader in global consumer recognition through LexID® technologies. And now, we have added a unique cross-industry view of U.S consumer application activity to enhance physical identity insights.

These unified identity solutions have the power to transform fraud and identity risk management across the lifecycle by delivering unmatched identity trust – allowing risk managers to more aggressively defend their business from fraud attacks while improving experiences for good customers.

This transformation begins at account opening – with stronger account opening fraud assessments that reduce fraud and unnecessary friction while improving the efficiency of manual reviews through our fraud scores.

The LexisNexis® Fraud Intelligence Third-Party Fraud Scores synthesize the industry’s most comprehensive coverage of identity and fraud behavior into an actionable, non-FCRA three-digit risk score and warning codes that are dynamically calculated at the time of inquiry.

Fraud Intelligence is currently available in three different forms that target fraudulent patterns within a specific industry:

1. Fraud Intelligence Bankcard Score – Banks/financial institutions, bankcard issuers, money service businesses, and auto lenders
2. Fraud Intelligence Retail Score – Retail card issuers
3. Fraud Intelligence Wireless Score – Telcom, wireless and utilities (including phone providers)

You can also request a custom product tailored to your organization’s specific needs.

Factor the Fraud Intelligence Third-Party Fraud Score into your decision-making process at account opening. It fits smoothly into your existing fraud workflows and gives you the opportunity to distinguish legitimate customers from fraudsters at the very beginning of the process before any damage has been done. It offers clear, concise insight into any irregularities that are suspicious and might suggest fraud.

LexisNexis Fraud Intelligence Third-Party Fraud Scores integrate critical identity intelligence to help businesses recognize valuable applicants faster and reinforce fraud defenses with precise visibility into the attributes that signal fraudulent identities:

• Fraud Three-Digit Risk Score: The empirically derived three-digit numeric risk score predicts the likelihood an application will result in fraud. The risk score ranges from 001 – 998, where the lower the score, the lower the risk.
  
  
• Warning Codes: Fraud intelligence Third-Party Fraud Scores also return up to six indicative fraud risk warning codes that pinpoint specific high-risk conditions to enable investigative teams to efficiently prioritize investigation and review queues

Finding equilibrium between fast acquisition speed fraud prevention at account origination is tricky. A fraud score that considers dynamic behaviors and attributes can give you an edge up-front—when it matters most—in evading third-party identity fraud.

With LexisNexis® Fraud Intelligence Third-Party Fraud Scores, legitimate customers sail through the application process without hassle or delay. And investigators are then free to focus on those applications that are truly high-risk. The result is fast approvals that keep customers happy without revenue loss due to third-party identity fraud.

Discover how to increase market share without taking on more risk with LexisNexis® Fraud Intelligence Third-Party Fraud Scores.

For more information about LexisNexis Fraud Intelligence Third Party Scores, please call 1-408-200-5755.

Synthetic identity fraud is a stealthy, complicated and costly opponent. Eighty-five percent of synthetic identities were not flagged by third-party fraud models in a recent study.¹ Fraudsters exploit this weakness by creating synthetic personas that closely mirror thin or no-file consumers and successfully evade detection.  

Synthetic identity fraud leaves no victim to report an identity theft and no defined indicators or patterns to inform retroactive fraud defenses. How can businesses effectively target emerging and thin-file consumers while avoiding the impacts of this growing and elusive fraud threat?

The LexisNexis® Fraud Intelligence Synthetic Score synthesizes the industry’s most comprehensive coverage of identity and fraud behavior into an actionable, non-FCRA three-digit risk score and warning codes that are dynamically calculated at the time of inquiry.

The Fraud Intelligence Synthetic Score seamlessly integrates into existing fraud workflows and can be used as a fraud scorecard or as a decision point in the account origination strategy. Instantly identify legitimate applicants and stop more fraud up-front with easy-to-consume insight into critical identity anomalies that signal synthetic identities.

LexisNexis® Fraud Intelligence Synthetic Score delivers real-time decisioning advantage: 

• Increase visibility into key signals of synthetic identity fraud
  
• Accelerate approvals for legitimate customers
  
• Detect fraudulent applications up-front
  
• Protect profitability by minimizing fraud losses
  
• Prioritize customer experience by reducing false positives and delays 
• Focus resources on the applications representing the highest risks

Accelerate approvals and onboarding while avoiding synthetic identity fraud losses. LexisNexis® Fraud Intelligence Synthetic Score integrates critical identity intelligence to help businesses recognize valuable applicants faster and reinforce fraud defenses with precise visibility into the attributes that signal synthetic identities: 

• Fraud Three-Digit Risk Score: The empirically derived three-digit numeric risk score predicts the likelihood an application will result in fraud. The risk score ranges from 001 – 998, where the lower the score, the lower the risk.
  
  
• Warning Codes: Fraud intelligence Synthetic Score also returns up to six indicative fraud risk warning codes that pinpoint specific high-risk conditions to enable investigative teams to efficiently prioritize investigation and review queues

LexisNexis® Fraud Intelligence Synthetic Score is fueled by the powerful combination of:

• A vast set of identity information
  
• Advanced linking technology
• Cross-industry, contributory fraud intelligence that includes identity application behavior and extensive global email intelligence through LexisNexis® Emailage® 

The Fraud intelligence Synthetic Score analyzes and aggregates hundreds of unique identity characteristics and life events to uncover data interconnections, inconsistencies and fraud patterns in application profiles. The Fraud intelligence Synthetic Score uses newly patented pattern profile recognition² to go beyond pass/fail criteria and deliver a holistic examination into known fraudulent and suspicious profiles.

Uncover synthetic identity fraud faster by leveraging our research-driven insights into the common characteristics that help distinguish synthetic identities from emerging consumers. 

• No family connections or associates: Forty-five percent of likely synthetics have no evidence of family. Synthetic identities demonstrate extremely high risk when no known associates are found, with a default risk 14.7 times the baseline rate in our study.³
• Network emergence patterns: Synthetic identities lack a linear emergence path that follows typical legitimate identities, such as driver’s license or other consumer history identity elements.⁴
• Co-Mingled Contact Elements: Synthetic identities are built with phone numbers and email addresses that are frequently repurposed. Other signals include contact field crowding and repeated inconsistencies among other identity elements in the same application.⁵
• Synthetic identities tend to remain static over time: in our study 99% of synthetic identities remained the same over 24-months, while new emergent populations typically migrate 38% of the time.⁶
• Phone numbers as a focal point: Synthetic fraudsters often re-purpose a phone number.  When a phone number has been associated with 4 or more credit inquiries in the recent months, it is 14 times more risky.⁷

Balance acquisition speed with advanced fraud security with the advantage of a fraud score that evaluates dynamic behaviors and attributes to predict and prevent synthetic identity fraud at the point of application. LexisNexis® Fraud Intelligence Synthetic Score reduces friction and delays for legitimate applicants and focuses investigative resources on high-risk applications. Confidently accelerate approvals, detect fraudulent applications and avoid losses and profit erosion tied to synthetic identity fraud.

Find out how to capture greater market share without compromising speed or security with LexisNexis® Fraud Intelligence Synthetic Score.

For more information about LexisNexis Fraud Intelligence Synthetic Score, please call 1-408-200-5755.

1, 3-7. LexisNexis® Risk Solutions, Internal Research, March 2021
2. https://patents.google.com/patent/US20200020062A1/en 

Fraudsters are continually refining their methods. They’re forever increasing their level of sophistication and inventing new ways to avoid detection. Lenders often unknowingly open accounts for stolen, fraudulent or manipulated identities. And once fraudsters are in your ecosystem, rooting them out isn’t easy. It’s no surprise then that the cost of fraud for U.S. financial services and lending firms is continually rising.

LexisNexis® Fraud Intelligence Attributes is a cross-industry solution that can help you manage new account and portfolio fraud risk. And it does so without creating a negative experience for legitimate customers.

Fraud Intelligence Attributes contain 300 variables that provide visibility into the application profile and the applying identity to detect multiple forms of identity fraud. It allows you to spot the potential for fraud before it occurs. Waiting until you experience a loss is too late. The damage is done. The best fraud prevention strategy is to stop fraud before it happens.

• Detect fraud at account opening and account review
• Gain a more comprehensive view of fraud behavior from thousands of data sources
• Increase operational efficiency by focusing on the highest risk applications
• Improve effectiveness of fraud investigations and manual reviews
• Deliver a positive experience by reducing false positives and approving legitimate customers more quickly
• Leverage variables as inputs to custom models
• Enables detection of multiple forms of fraud including:

• First-person fraud
• Third-person fraud
• Synthetic fraud
• Manipulated identity fraud
• Account takeover fraud 

• Three hundred attributes
• Cross-industry attributes to identify high-risk behaviors
• Helps with meeting regulatory and compliance standards

With increasing fraud volume, financial services and lending firms that are not optimizing their approaches to fight newer and more complex types of fraud may be at higher risk. Fraud Intelligence Attributes delivers the insights you need to quickly assess risk and make informed decisions. 

For more information about LexisNexis Fraud Intelligence Attributes, please call 1-408-200-5755.