Experian Global News Blog

Tag: fraud

  • Why fraud is an issue we all need to think about this Christmas

    Why fraud is an issue we all need to think about this Christmas

    It’s hard to believe that Christmas is just around the corner.

    Many of us will be starting to think about (or if you’re very organised, have already finished) their Christmas shopping. Black Friday sales will kick-off this week’s online bonanza, as bargain hunters pursue the best deals online. However, while we are all busy getting into the spirit of things, it has never been more vital that we do what we can to protect ourselves from identity fraud.

    As the popularity of the Black Friday sales season has grown, we’ve also seen a marked increase in the volume of fraudulent activity, as criminals use stolen or illegally obtained personal details to apply for credit in someone else’s name.

    According to our latest analysis of National Hunter Fraud Prevention Service data, the fraud rate for credit card applications has increased by 43% in the last three months to 69 confirmed fraudulent applications per 10,000 applications. It’s expected the rate will rise even more in December, as criminals look to take advantage.

    It’s naturally worrying if you are a victim of ID fraud. The fraudster will likely have tried to obtain credit in your name – perhaps on multiple occasions – and you’ll be concerned about how and from where they got hold of your information in the first place.

    Fortunately, there’s a host of things you can do to protect yourself. Checking your credit report on a regular basis is one of the best ways to spot if fraudsters have used your personal information to attempt to access credit, and our dedicated teams can help guide you through the steps if the worst happens and your identity has been stolen.

    New services and solutions are also helping companies identify and prevent more fraud. In part, the rise in rates can be attributed to better detection, helping fraud teams focus their energy on fraudulent applications, rather than genuine ones.

    So, while you’re browsing for gifts this festive season, make sure you are mindful of those looking to spoil your Christmas spirit. Help is available and you can read more on how to guard yourself against identity fraud on our website.

  • Empowering Local Communities to Fight Fraud #ExperianStories

    Identity fraud is at an all-time high, and it can have devastating consequences on a person’s life.

    Victims of identity fraud may have to file for bankruptcy or deal with debt, which can sometimes cause personal relationships to suffer. Elderly people in particular are at the greatest risk of fraud out of any age group, as they tend to more trusting of phone calls, house calls and email scams. It’s my job at Experian to arm them with the tools they need to prevent identity fraud.

    The number one challenge in helping prevent identity fraud is lack of awareness. People simply don’t know all the risks, so education is a paramount priority.

    At Experian, we conducted research on the best way to educate different age groups, and found that it varied widely. While younger people are best reached online, older people are more responsive to face-to-face activities, which is part of the reason they are more susceptible to doorstep scams. To help educate elderly people, we found we needed to go out into the community and literally put useful information into people’s hands.

    As part of these efforts, my team at Experian first worked with the Outreach Solutions organization to help older people in Nottinghamshire, England, understand the dangers of fraud.

    The pilot campaign, “Tackling Fraud,” reached 15,000 U.K. residents over age 55, teaching them how to tackle the threat of fraud. We armed these individuals with expert advice on how to spot suspicious activity and stop it from happening to them or the people they care about.

    Given the success and great reception we had in Nottinghamshire, it was clear that this movement could continue growing. According to Experian research, Glasgow is one of the areas with the highest number of identity fraud cases in Scotland.

    We’d been testing a new television advertisement in Glasgow – marking the first time that identity fraud has ever been advertised on TV in the U.K. – so I made the case to run the next iteration of our Tackling Fraud campaign there, too.

    In partnership with the Glasgow Council for the Voluntary Sector, we worked with a range of individuals and community groups to provide fraud prevention training to more than 30,000 elderly people in the city.\

    We’re dedicated to helping the elderly with our Tackling Fraud campaign, putting people in control of their lives by giving them the information they need to help them protect themselves. I hope that one day we can take this project throughout the U.K.

    Written by: Phil Rance, Director of Product Identity, Experian Consumer Services

     

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  • Forrester’s Report: Experian Has Most Capabilities in Total Fraud Management

    mobile-creditIndependent research firm cites Experian as having the most capabilities and one of the highest estimated revenues in total fraud management

    Experian announced today that we were included in Forrester’s 2016 “Vendor Landscape: Mobile Fraud Management Solutions[1]” report. The full press release is available on our Insights blog.

    Experian was listed as having nine out of a possible 10 capabilities needed to combat mobile fraud. In addition, Experian was cited as having one of the highest total fraud management revenues in 2015, between $200 million and $250 million. Only one other vendor in the report was cited with revenue over $200 million. Through what we consider to be this significant market presence, Experian provides fraud management solutions to some of the world’s largest brands in financial services, insurance, and retail.

    “We believe the findings in this report further validate the power of Experian’s fraud management solutions,” said Steve Platt, global executive vice president, Fraud and Identity, Experian. “There is incredible innovation taking place in mobile today and our clients need to be able to keep up with the pace of change, while also providing reliable protection. We feel this report is a noteworthy validation of our commitment to building a safer environment for consumers across the globe while ensuring a positive customer experience.”

    A complimentary copy of the June 2016 Forrester report by analyst Andras Cser is now available here.

    [1] Vendor Landscape: Mobile Fraud Management Solutions, Forrester Research, Inc., June 2016
  • Experian launches CrossCore, an innovative new fraud platform

    Experian launches CrossCore, an innovative new fraud platform


    blogbanner_930x420Industry’s first smart plug-and-play fraud platform allows companies to connect their own solutions, Experian products and third-party vendors in one place to better protect their customers from fraud threats

    Experian unveiled the fraud and identity industry’s first open platform designed to catch fraud faster, improve compliance and enhance the customer experience. Fraud attacks change at such a fast pace that right now it’s a challenge for clients to manage all the tools they need to keep up. Experian’s CrossCore™ lets them plug all their fraud and ID services into a single platform, easily adding new ones, from Experian and others, when needed. This means they can make decisions – with more confidence – more quickly, making life easier for their customers.

    “Our clients have expressed frustration over the lack of a truly holistic industry solution that delivers the level of confidence and control they need without requiring a massive multiyear project to replace everything they have,” said Steve Platt, global executive vice president, Fraud and Identity, Experian. “New fraud threats, updates to regulatory requirements and customer expectations for a hassle-free experience are making it challenging for fraud and compliance teams to keep up. CrossCore will give them the flexibility they need to balance customer protection with customer experience.”

    Please read the full release here and learn more about CrossCore capabilities.

  • 12 tips to prevent fraud for the Internet of Things

    12 tips to prevent fraud for the Internet of Things

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    The benefits of the Internet of Things are only as strong as the weakest connected point.

    Having a plan in place to prevent fraud that businesses and consumers can use to manage risk and increase security when using Internet-enabled products, also known as the Internet of Things (IoT), is critical. Connected devices such as smartphones and tablets, and a tremendous number of consumer products — including cars, heart monitors and household appliances — are now connected to the Internet. Many of these connected products have weak security and controls, creating points of weakness in users’ critical private networks, systems, and data.

    Adam Fingersh, senior vice president and general manager of Experian’s fraud and identity business, shared several fraud prevention strategies that businesses and consumers can use to manage risk and increase security while using Internet-enabled products, also known as the Internet of Things (IoT).

    Please read all the security tips on our Insights blog and learn more about Experian’s Fraud and Identity business.

  • Top riskiest states for e-commerce fraud attacks

    Top riskiest states for e-commerce fraud attacks

    Does knowing where fraud takes place matter?E-commerce fraud attack rates

    That is the question we asked ahead of compiling data from 2015 to show where billing and shipping fraud attacks occur in the United States. The answer is Yes, it does matter. With more than 13 million fraud victims in 2015,[1] assessing where fraud occurs is an important layer of verification when performing real-time risk assessments for e-commerce.

    Experian analyzed millions of e-commerce transactions to identify fraud attack rates across the United States for both shipping and billing locations. You can view the map to see the attack rates for all states and download the top 100 ZIP Code rankings as well.

    Click here for the highlights and the findings.

     

     

  • Experian Introduces Enterprise Fraud and ID Business in North America

    At the start of the Vision 2015 Conference, Experian® announced a new dedicated enterprise Fraud and ID business in North America.

    This newly established business unit allows Experian, the leading global information services company, to more aggressively address the growing variety of fraud risk and identity management challenges businesses, financial institutions and government agencies face.

    “The rapid progression of wide-scale fraud and data breaches have led to a significant increase in identity theft related risk, and potential fraud losses on a larger scale than ever anticipated,” said Charles Chung, president of Decision Analytics, Experian North America. “For nearly two decades, we have been helping clients solve the difficult and ever-changing problems of fraud detection and identity management. Our core expertise was further enhanced by the recent acquisition of 41st Parameter which added device identification as another important layer of sophistication to our suite of fraud detection tools. Now the creation of a new fraud business unit brings all components of our Fraud and ID services together to better serve all markets through our innovative authentication techniques, advanced analytics and Big Data insights.”

    Having one comprehensive operation allows Experian to deliver greater value across its various addressable markets through customized approaches that balance privacy, security and compliance requirements with client reputation, customer experience, convenience and efficiency.

    The integration brings together a wide set of enterprise services ranging from identity and device risk assessment and anti–money laundering to consumer identity monitoring and alerts, letting Experian continue to proactively meet client needs surrounding the complex risks they face.

    Dr. Jon Jones has been appointed to lead the new business unit as senior vice president and general manager of Fraud and ID for Experian North America.

    “Data security and fraud management affect many industries as identity data has become so compromised that authenticating consumers through traditional means is not enough to safeguard against fraud. Modern fraud risks now absolutely require Big Data assets and the proven ability to derive predictive analytical capabilities to meet these challenges,” said Jones. “Today, online and mobile commerce, and customer demands for convenience and speed are intersecting with the increasing sophistication of criminal fraud networks. Experian’s new integrated fraud business delivers next-generation holistic fraud management services, leveraging our vast data landscape to identify customers’ risk for fraud even when no threat has been detected to stay ahead of the growing market demands.”

    Accounting for the real risk of identity compromise over time continues with the launch of Experian’s Identity Element NetworkSM which identifies real-time fraud volume and velocity linkages across multiple industries to predict when consumers are showing risk of identity compromise. Experian monitors and predicts when seemingly random identity element linkages become meaningful risk clusters, including:

    • When an identity likely has been compromised
    • When an identity is victim of a data breach
    • When a transaction is part of an identity theft scheme, particularly an account takeover
    • When consumers’ identities are exhibiting identity theft, visible by monitoring a broad portfolio of breached or compromised consumers

    “Cybercriminals continue to rapidly escalate their assault on sensitive data across a variety of industries, with no end in sight,” said Julie Conroy, research director at Aite Group.  “This requires fraud prevention capabilities to undergo a similar rapid evolution, with a new, more advanced approach to identity management sitting squarely in the middle of risk mitigation. Simple personally identifiable information is no longer enough to verify identity; the next wave of fraud and cybersecurity services needs to employ robust data and advanced analytical capabilities in order to make faster and more informed identity decisions.”

    Experian’s Identity Element Network service can be utilized through its flagship fraud enterprise platform, Precise ID®, using its data assets and analytics alongside 41st Parameter’s FraudNet to deliver a comprehensive view of the Customer Life Cycle of traditional identity, device confidence and risk assessment.

    Learn more about Experian’s Big Data fraud service for breach identity compromise detection for your business.

  • Sixty percent of marketers are unsure of the cost of fraud to their organization

    Balancing holiday marketing efforts with fraud prevention requires a coordinated approach according to survey findings from 41st Parameter, a part of Experian. The survey results2014HolidayFraudSurvey from 250 marketers released today, looks at the relationship between omnichannel retailing, fraud prevention and the holiday shopping season. The findings show that few marketers understand the full benefit of fraud-prevention systems on their activities as 60 percent of marketers were unsure of the cost of fraud to their organization. The survey also indicated that 40 percent of marketers said their organization had been targeted by hackers or cybercriminals.

    Download the Holiday Marketing Fraud Survey: http://snip.ly/JoyF

    With holiday shopping in full stride, 35 percent of businesses said they planned to increase their digital spend for the 2014 holiday season. Furthermore, Experian Marketing Services reported that during 2014, 80 percent of marketers planned on running cross-channel marketing campaigns. As marketers integrate more channels into their campaigns, new challenges emerge for fraud-risk managers who face continuous pressure to adopt new approaches. Here are three steps to help marketers and risk managers maintain a frictionless experience for customers:

    • Marketers should communicate their plans early to the fraud-risk team, especially if they are planning to target a new or unexpected audience. Making this part of the process will reduce the chances that risk management will stop or inhibit customers.
    • Ensure that marketers understand what the risk-management department is doing with respect to fraud detection. Chances are risk managers are waiting to tell you.
    • Marketers shouldn’t assume that fraud won’t affect their business and talk to their risk-management division to learn how much fraud truly costs their company. Then they can understand what they need to do to make sure that their marketing efforts are not thwarted.

    “Marketers spend a great deal of time and money bringing in new customers and increasing sales, especially this time of year, and in too many cases, those efforts are negated in the name of fraud prevention,” said David Britton, vice president of industry solutions, 41st Parameter. “Marketers can help an organization’s bottom line by working with their fraud-risk department to prevent bad transactions from occurring while maintaining a seamless customer experience. Reducing fraud is important and protecting the customer experience is a necessity.”

    Few marketers understand the resulting impact of declined transactions because of suspected fraud and this is even more pronounced among small businesses, with 70 percent saying they were unsure of fraud’s impact. Fifty percent of mid-sized business marketers and 67 percent of large-enterprise marketers were unsure of the impact of fraud as well.

    An uncoordinated approach to new customer acquisition can result in lost revenue affecting the entire organization. For example, the industry average for card-not-present declines is 15 percent. However, one to three percent of those declined transactions turn out to be valid transactions, equating to $1.2 billion in lost revenue annually. Wrongfully declined transactions can be costly as the growth of cross-channel marketing increases and a push towards omnichannel retailing pressures marketers to find new customers.

    “Many businesses loosen their fraud detection measures during high peak time because they don’t have the tools to review potentially risky orders manually during the higher-volume holiday shopping period,” said Britton. “Criminals look to capitalize on this and exploit these gaps in any way possible, taking an omnifraud approach to maximizing their chances of success. Striking the right balance between sales enablement and fraud prevention is the key to maximizing growth for any business at all times of the year.”

    Download Experian’s fraud prevention report to learn more about how businesses can address these new marketing challenges.

     

  • Experian addresses fraud and cybersecurity challenges as risks mount for banks, retailers and public sector

    Experian hosting Future of Fraud and Identity event during National Cyber Security Awareness Month

    Costa Mesa, Calif., Oct. 13, 2014 — Identity and fraud concerns are a pressing global issue for many industries, including financial services, public sector and retailers. With the rise in security and data breaches, many organizations across the United States are particularly challenged, due to the growth of malware viruses, mobile-payment advancements and the need to authenticate online and mobile consumers better.

    To help business leaders address these rising fraud and identity issues, Experian® is hosting the Future of Fraud and Identity event on Oct. 21 in New York City, N.Y. The event will feature:

    • Ori Eisen, Experian fraud expert and founder of 41st Parameter, highlighting the current trends in cybersecurity and how technology can combat these major threats
    • Frank Abagnale, of Catch Me If You Can fame and respected authority on financial crime and fraud, sharing his personal story highlighting his work with numerous financial institutions over the past 38 years
    • Charles Chung, president of Experian Decision Analytics, a global leader in fraud and identity products, opening the event
    • Jon Jones, senior vice president of fraud and identity for Experian Decision Analytics, presenting Experian’s strategic view on identity risk management

    Many organizations are trying to address fraud risks while adapting to the changing habits of customers. One example of this is the acceptance of new mobile-payment options that are driving a transformation of the payments ecosystem. Current mobile-fraud trends include the use of increasingly sophisticated malware as attackers capitalize on banks and retailers providing these new service offerings to consumers via mobile devices.

    “Gaining control in this dynamic fraud environment is a major challenge for businesses as the Internet and mobile technologies were not designed with fraud in mind. Consumers accessing their financial or personal data at any time is a key fraud risk today, further enabling criminal activity,” said Eisen. “As companies invest to meet customer expectations and ensure that payments are secure and reliable, we see an urgent need for proactive next-generation security measures with fraud detection and intelligent device identification for corporate accounts and online transactions.”

    In 2013, identity theft affected more than 13 million U.S. consumers and accounted for more than $18 billion in losses. As technologies evolve and information security tightens, the savvy nature of fraudsters becomes more sophisticated. As a result, fraud management needs to evolve and include both offline and online fraud strategies to provide a panoramic view of the customer. In order to achieve this, authentication processes need to become seamless and straightforward to allow both the consumer and the business to feel confident in the authentication process while creating a positive customer experience.

    “Serious risks are emerging for consumers and businesses as fraudsters identify new targets to attack. The monetary cost of fraud losses can be high, but the impact a loss or breach can have on customer relationships and brand integrity can be even higher,” said Chung. “Combining comprehensive authentication processes with proportionate measures to monitor user activities and protect consumer data throughout the life cycle is a competitive requirement in today’s market.”

    The Future of Fraud and Identity event will take place on Oct. 21 in New York City, from 7:30 a.m. to noon at the Helen Mills Event Space at 137 West 26th Street.