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As the sophistication of fraudulent schemes increases, so must the sophistication of your fraud detection analytics. This is especially important in an uncertain economic environment that breeds opportunities for fraud. It's no longer enough to rely on old techniques that worked in the past. Instead, you need to be plugged into machine learning, artificial intelligence (AI) and real-time monitoring to stay ahead of criminal attempts. Your customers have come to expect cutting-edge security, and fraud analytics is the best way to meet — and surpass — those expectations. Leveraging these analytics can help your business better understand fraud techniques, uncover hidden insights and make more strategic decisions. What is fraud analytics? Fraud analytics refers to the idea of preventing fraud through sophisticated data analysis that utilizes tools like machine learning, data mining and predictive AI.1 These services can analyze patterns and monitor for anomalies that signal fraud attempts.2 While at first glance this may sound like a lot of work, it's necessary in today's technologically savvy culture. Fraud attempts are becoming more sophisticated, and your fraud detection services must do the same to keep up. Why is fraud analytics so important? According to the Experian® 2023 US Identity and Fraud Report, fraud is a growing issue that businesses cannot ignore, especially in an environment where economic uncertainty provides a breeding ground for fraudsters. Last year alone, consumers lost $8.8 billion — an increase of 30 percent over the previous year. Understandably, nearly two-thirds of consumers are at least somewhat concerned about online security. Their worries range from authorized push payment scams (such as phishing emails) to online privacy, identity theft and stolen credit cards. Unfortunately, while 75 percent of surveyed businesses feel confident in protecting against fraud, only 45 percent understand how fraud impacts their business. There's a lot of unearned confidence out there that can leave businesses vulnerable to attack, especially with nearly 70 percent of businesses admitting an increase in fraud loss in recent years. The types of fraud that businesses most frequently encounter include: Authorized push payment fraud: Phishing emails and other schemes that persuade consumers to deposit funds into fraudulent accounts. Transactional payment fraud: When fraudulent actors steal credit card or bank account information, for example, to make unauthorized payments. Account takeover: When a fraudster gains access to an account that doesn't belong to them and changes login details to make unauthorized transactions. First-party fraud: When an account holder uses their own account to commit fraud, like misrepresenting their income to get a lower loan rate. Identity theft: Any time a person's private information is used to steal their identity. Synthetic identity theft: When someone combines real and fake personal data to create an identity that's used to commit fraud. How can fraud analytics be used to help your business? More than 85% of consumers expect businesses to respond to their security and fraud concerns. A good portion of them (67 percent) are even ready to share their personal data with trusted sources to help make that happen. This means that investing in risk and fraud analytics is not only vital for keeping your business and customer data secure, but it will score points with your consumers as well. So how can your business utilize fraud analytics? Machine learning is a great place to start. Rather than relying on outdated rules-based analytic models, machine learning can vastly increase your speed in identifying fraud attempts. This means that when a new fraudulent trend emerges, your machine learning software can pinpoint it fast and flag your security team. Machine learning also lets you automatically analyze large data sets across your entire customer portfolio, improving customer experiences and your response time. In general, the best way for your business to use fraud analytics is by utilizing a multi-layered approach, such as the robust fraud management solutions offered by Experian. Instead of a one-size-fits-all solution, Experian lets you customize a framework of physical and digital data security that matches your business needs. This framework includes a cloud-based platform, machine learning for streamlined data analytics, biometrics and other robust identity-authentication tools, real-time alerts and end-to-end integration. How Experian can help Experian's platform of fraud prevention solutions and advanced data analytics allows you to be at the forefront of fraud detection. The platform includes options such as: Account takeover prevention. Account takeovers can go unnoticed without strong fraud detection. Experian's account takeover prevention tools automatically flag and monitor unusual activities, increase efficiency and can be quickly modified to adapt to the latest technologies. Bust-out fraud prevention. Experian utilizes proactive monitoring and early detection via machine learning to prevent bust-out fraud. Access to premium credit data helps enhance detection.  Commercial entity fraud prevention. Experian's Sentinel fraud solutions blend consumer and business datasets to create predictive insights on business legitimacy and credit abuse likelihood. First-party fraud prevention. Experian's first-party fraud prevention tools review millions of transactions to detect patterns, using machine learning to monitor credit data and observations. Global data breach protection. Experian also offers data breach protection services, helping you use turnkey solutions to build a program of customer notifications and identity protection. Identity protection. Experian offers identity protection tools that deliver a consistent brand experience across touchpoints and devices. Risk-based authentication. Minimize risk with Experian's adaptive risk-based authentication tools. These tools use front- and back-end authentication to optimize cost, risk management and customer experience. Synthetic identity fraud protection. Synthetic identity fraud protection guards against the fastest-growing financial crimes. Automated detection rules evaluate behavior and isolate traits to reduce false positives. Third-party fraud prevention. Experian utilizes third-party prevention analytics to identify potential identity theft and keep your customers secure. Your business's fraud analytics system needs to increase in sophistication faster than fraudsters are fine-tuning their own approaches. Experian's robust analytics solutions utilize extensive consumer and commercial data that can be customized to your business's unique security needs. Experian can help secure your business from fraud Experian is committed to helping you optimize your fraud analytics. Find out today how our fraud management solutions can help you. Learn more 1 Pressley, J.P. "Why Banks Are Using Advanced Analytics for Faster Fraud Detection," BizTech, July 25, 2023. https://biztechmagazine.com/article/2023/07/why-banks-are-using-advanced-analytics-faster-fraud-detection 2 Coe, Martin and Melton, Olivia. "Fraud Basics," Fraud Magazine, March/April 2022. https://www.fraud-magazine.com/article.aspx?id=4295017143

Capturing consumer attention has always been at the heart of winning revenue and loyalty for businesses. But in a world where digital and social media use have skyrocketed, consumer attention is increasingly scarce. Financial institutions must combat diminishing consumer attention span and exponentially rising advertising costs, while continuing to ease consumer financial stress and increase their bottom line. Using financial management services to drive user engagement can be an effective strategy to win the race for consumer attention. A recent global study by Yahoo and OMD Worldwide shows that Gen Z consumers lose active attention for ads after just 1.3 seconds—less time than any other age group.[1] As Gen Z gradually becomes a larger segment of the buying population, it’s crucial to attract their attention and gain their trust, along with that of other key demographics like millennials, Gen X, and baby boomers. The companies that succeed in standing out from the competition are those who can provide services that consumers value and keep them coming back to engage. A study by Harvard Business Review found that “highly engaged customers lead to a 23% increase in share of wallet, profitability, revenue and relationship growth.”[2] This shows that offering these services can bring highly desirable benefits to consumers while also generating valuable revenue opportunities for businesses. Companies that deliver solutions that consumers need can build loyalty, create cross-sell and upsell opportunities to gain a greater share of wallet, and foster a sticky relationship with their customers. We have found that financial management solutions can be a powerful way to engage consumers while giving them services that they expect from their financial institutions. Financial management services can capture consumer attention Experian’s Digital Financial Manager™, for example, can help providers like banks, credit unions, and other institutions identify growth opportunities, while delivering much needed support and guidance to consumers looking to improve their financial well-being. Services like this could keep customers engaged and help increase your revenue. Our partners see up to a 30% increase in monthly active subscribers when Digital Financial Manager™ is added to Experian’s credit education experience.[3] Consumers may open twice as many credit cards and three times as many savings accounts when they regularly use financial management insights. In addition, our partners can drive further engagement with financial alerts, averaging up to a 53% open rate and a 75% post-alert login.[3] Research indicates that consumers want to see and manage all of their finances in a single place, rather than logging into multiple different accounts. Customers have been shown to link up to an average of 8.9 financial accounts across institutions,[4] providing partners with greater visibility into their customers’ financial habits. In addition, consumers who consolidate their accounts could save time and reduce stress when managing their finances. This is a crucial benefit, as stress can have a seriously negative impact on mental health and well-being. The impact of financial stress Financial stress is becoming increasingly common in consumers. In tough market conditions where this stress is putting a strain on consumer finances, consumers are looking for help. Most people need help managing their finances, but many of them don’t know how or where to get it. Less than 30% of Americans have a solid financial plan in place[5] and lacking financial knowledge cost individuals an average of $1,819 in 2022.[6] Without strong support from a trusted source, consumers won’t be well equipped to improve their financial health and credit standing, which can make it difficult for them to remain loyal customers to your business. Consumers aren’t the only ones experiencing financial difficulty. The banking and financial services industries are facing significant challenges as well. Challenges in the finance industry Costs associated with digital advertising have risen dramatically for financial institutions. Digital ad spending for the U.S. financial services industry reached $21 billion in 2020 and is predicted to reach $30.75 billion by the end of 2023.[7] In addition, banking has a $4.98 cost per click, the sixth highest average in the industry.[8] These are just a few of the many challenging market conditions hurting businesses’ bottom lines and making it difficult to acquire and engage customers. By offering a financial management solution, you have the potential to offset rising costs by fostering a more engaged customer base whose continued business will reliably maintain and grow your revenue. How to start a financial wellness program Empower consumers with tools to help manage their credit and finances in a single experience, and drive platform engagement with insights and recommendations that can help them reach their goals sooner. A few steps to help you get started: Identify your revenue and growth goals Whether you’re looking to acquire new customers, drive engagement and retention, or create upsell and cross-sell opportunities, a financial wellness program could help you increase wallet share and strengthen customer affinity.  Provide in-demand offerings Your program should focus on services that customers expect from their financial institutions, such as credit education, financial management, identity protection and restoration, and data and device protection.  Capitalize on customer engagement to create upsell and cross-sell opportunities With in-demand services, you could drive further engagement with your customers and meet their needs with aggregated financial data, offer increased credit limits, and additional deposit accounts as customers become qualified.  Visit our website to learn more about Digital Financial Manager™. [1]Insider Intelligence, Gen Z has a 1-second attention span. That can work to marketers’ advantage. 2022. [2]Gitnux. The Most Surprising Customer Engagement Statistics in 2023. [3]Experian D2C Financial Management reported as of May 2023 (based on Experian.com member engagement with similar features). [4]Experian Employee Benefits Financial Management as of May 2023. [5] BusinessDIT, The State of Financial Planning, April 2023. [6] National Financial Educators Council, Cost of Financial Illiteracy Survey, 2023. [7]Statista, Financial services industry digital advertising spending in the US, Jan 2023. [8]Insider Intelligence, Avg. CPC on keywords for select US industries, Sep 2022. Disclosure: This article is provided for general guidance and information.  It is not intended as, nor should it be construed to be, legal, financial or other professional advice.  Please consult with your attorney or financial advisor to discuss any legal issues or financial issues involved with credit decisions.

Experian Automotive has updated our Electric Vehicles 2022 Year-in-Review Infographic Report with new 2023 Half-Year insights. In the previous report, we shared that over 6% of new, retail registrations were for electric vehicles.  As we evaluated the current state of the Electric Vehicle Market for the first half of 2023 (January-June registrations), the percentage of new, retail registrations for electric vehicles has increased to over 7.5%. There are several factors driving consumer adoption of electric vehicles in the United States, including: Environmental concerns: Consumers are increasingly concerned about the environmental impact of transportation, and EVs produce zero emissions at the tailpipe. Government incentives: Many state and federal governments offer incentives for the purchase of electric vehicles, such as tax credits and rebates. Falling battery costs: The cost of lithium-ion batteries, the key component of EVs, has fallen in recent years, making EVs more affordable for consumers. Increasing availability of EV models: Automakers are releasing a growing number of EV models, giving consumers more choices to fit their needs and budgets. Despite the progress that has been made, there are still some challenges that need to be addressed to accelerate EV adoption in the United States. These challenges include: Lack of charging infrastructure: There is a need for more public charging stations, especially in rural areas and along major highways. High upfront cost: EVs can still be more expensive to purchase than gasoline-powered vehicles, even after factoring in government incentives. Range anxiety: Some consumers are concerned about the range of EVs, which can be limited compared to gasoline-powered vehicles. Despite the challenges, the future of electric vehicles in the United States is bright. Automakers are investing heavily in EV development, and the number of EV models available to consumers is expected to continue to grow. Additionally, state and federal governments are taking steps to support EV adoption, such as investing in charging infrastructure and offering incentives for consumers and businesses to purchase If you’d like to learn more about the current state of the Electric Vehicle market and buyer and how that market is growing and changing, check out our Updated Electric Vehicles Year in Review Infographic.