Together, these solutions aim to help companies detect and prevent first-party fraud, the provider of digital identity verification and fraud solutions said in a Monday (Oct. 23) press release.
First-party fraud is harder to prevent compared to identity fraud because it involves fraudulent activities committed by individuals who use their own identities to conduct dishonest acts for financial gain, according to the release. First-party fraud losses in the United States exceed $100 billion annually.
To tackle this issue, Socure has taken a consortium approach, forming partnerships with digital banks and FinTechs such as SoFi, Green Dot, Varo, Ingo Money and Public, among others, the release said. The consortium has more than 50 million active accounts and aims to add another 200 million accounts.
The Socure FPFC aims to detect and prevent first-party fraud by analyzing alternative data signals that are not typically tracked in traditional credit reports, per the report. By collaborating and sharing data among consortium members, the FPFC can identify patterns of fraudulent behavior across multiple platforms and over time, stopping fraud before it takes hold. This collaborative approach is crucial as 45% of FPFC members have overlapping consumer bases, enabling the identification of fraudulent behavioral patterns that may have been mistaken as legitimate.
Socure’s first-party fraud solution uses data from the FPFC and risk indicators derived from the Socure Risk Insights Network, which gathers feedback data from over 1,800 customers across the digital economy, according to the press release. Additionally, Socure leverages more than 400 databases of cross-industry ID data to provide identity matching and prevent fraud.
The impact of the Socure FPFC extends beyond minimizing identity fraud, the release said. By expanding industrywide knowledge of consumer behavior, the consortium helps various sectors identify first-party fraud risk at different stages, including new account opening, transaction time, and dispute resolution.
Implementing Socure’s Sigma First-Party Fraud solution and leveraging the insights provided by the FPFC can enhance fraud prevention efforts, reduce losses, eliminate manual processes, speed onboarding and improve identity verification accuracy, per the release.
PYMNTS Intelligence has found that companies that expect customers to trust them with their personal data need to ensure they do all they can to protect them. In the end, customers will reward them with continued business while the digital marketplace becomes safer for all involved, according to “The Alternative Payments Tracker,” a PYMNTS and Socure collaboration.