Fight costly synthetic identity fraud without sacrificing your profits.
The financial services and e-commerce sectors rely on a vast number of technologies to meet the modern demands of customers all over the globe. Trying to monitor all of these potential abuse paths for signs of fraudulent activity is not a task that can be performed by your personnel alone. To make matters more difficult, one of the most formidable challenges in the online fraud landscape is detecting synthetic identity fraud.
Why is synthetic identity fraud such a problem?
As one of the more complex forms of identity theft, this type of fraud is the imitation of a person whose false identity is a combination of arbitrary factors.
Criminals obtain a legitimate Social Security number and use false information for the rest of the identity details (name, address, birth date, etc.).
In fact, one common tactic scammers use is the cultivation of a multifaceted false identity. This is when credit is established for the false identity and an illicit act is attempted for financial gain.
Following this step, the abandonment of the identity leaves virtually no trace that your personnel can track down. Due to the seemingly legitimate identity and otherwise normal precursor account activity, organizations have an incredibly difficult time detecting synthetic identity fraud.
Thus, the synthetic identity problem costs an estimated $1.3 billion annually.
How it works
While the cultivation of false identities seems like a slow, infrequent process, the use of automation technologies can give the bad guys the upper hand. Bots provide criminals with a very efficient means of not only harvesting personal information but also creating accounts online.
With this level of velocity, will your organization ever be able to detect synthetic identity fraud?
A winning strategy
How can your fraud teams tell the difference between verified, legitimate customers and synthetic identities?
With Fraud.net’s Application AI tool, your teams can instantly verify your organization’s genuine customers as well as potential fraudulent applications. This even includes applications that are generated using synthetic identities.
The Application AI tool also provides risk assessments of inbound applications in real-time. Your fraud teams can more easily validate activities and determine which applications are fraudulent.
By doing so, this prevents synthetic identities from going undetected and causing further harm.
What can Application AI do for you?
Application AI empowers your fraud teams by using a comprehensive and highly effective four-phase approach:
- Collect – By aggregating vital customer and event information, your teams can uncover the blind spots in active fraud attempts.
- Enrich – Using collective intelligence sourced from our partners and third-party participants, custom machine learning models provide the necessary context to make decisions. Device fingerprinting technology provides another source of authentication when the identity of applicants is brought into question.
- Assess – Powerful analytics and reporting support case management capabilities to track incidents of fraud.
- Decide – The choice is in the hands of your experts who have been empowered with Fraud.net’s cutting-edge solution. At this point, they can approve, reject or escalate a case. It’s that simple.
Just the facts
Using Application AI’s customizable case management portal, your teams can create unique views of the synthetic identity fraud landscape that threatens your organization.
By gaining visibility into exactly what is happening, when, and where, fraudsters stand a much lower chance at success. Your fraud detection teams also have the ability to step up authentication mechanisms to ensure only valid identities are accepted.
Be more than just compliant
Anti-money laundering and know your customer (AML & KYC) laws, such as the Bank Secrecy Act, impose strict guidelines on organizations. If you don’t follow these rules, you may face harsh fines and ruined reputations.
Application AI allows your teams to track chargebacks and fraudulent transactions at the individual level. This is done by categorizing by either victim or perpetrator so there is no mistake.
We’ve put in the work for you
Fraud.net solutions include KYC and AML capabilities, as well as solutions to track and validate applications by:
- Device and behavioral traits
- IP address
- Physical address
- Payment detail validation
By accessing dozens of third-party APIs, our marketplace data solutions provide information in seconds. This reduces technical costs and unnecessary hassles while maintaining multiple data vendors and technology partners.
Fraud.net has spent a significant amount of time building a rock-solid network of collective intelligence insights. You can compare details of applicants to the billions of data points we have captured.
Using a global anti-fraud network, fraudulent applications can be targeted and investigated even if you have never encountered that particular user before.
This substantial reduction of false positives means that your teams can become more efficient, saving your organization time, money, and your reputation.
Contact us
Visit the Fraud.net app store to select the right synthetic identity fraud solution for your organization’s needs.
Request a demo to learn more about Application AI and win the fight against online application fraud.