Socure Introduces New Risk Score to Combat Repeat First-Party Fraud

Socure has introduced a new tool designed to combat repeat first-party fraud.

The new Identity Manipulation Risk Score, which is now embedded within Sigma First-Party Fraud, uses artificial intelligence (AI) and real-time data from Socure’s fraud intelligence network to help organizations detect bad actors at account opening and throughout the customer lifecycle, the company said in a Thursday (March 6) press release.

“Identity manipulation is at the core of predicting first-party fraud, as most fraud prevention solutions fail to detect it,” Ori Snir, head of product management, fraud and identity solutions at Socure, said in the release.

Socure’s first-party fraud consortium enables it to gather fraud intelligence from a variety of sectors, including financial institutions, FinTechs, payment platforms, sports betting companies and merchants, according to the release.

With this network, the company can perform real-time analysis of data from millions of identities and billions of transactions, including dispute histories, payment denials and account closures, the release said.

Organizations can use this solution to quantify the likelihood of identity manipulation at critical decision points and combat first-party fraud, which is difficult to detect because it involves bad actors using their own real, verified credentials, per the release.

“With the launch of the Identity Manipulation Risk Score, we’re giving organizations the ability to proactively assess risk before financial losses occur, using AI-powered predictive analytics that stop bad actors in their tracks,” Snir said in the release.

Socure said in October 2023 that it launched Sigma First-Party Fraud and the First-Party Fraud Consortium (FPFC) to help companies detect and prevent first-party fraud.

The company said at the time that the FPFC aims to detect and prevent first-party fraud by analyzing alternative data signals that are not typically tracked in traditional credit reports.

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.

In December, Socure said the FPFC had compiled data intelligence covering 190 million contributed identities, 121 million of which were unique identities, along with 325 million accounts and 20 billion transactions, “marketing an unprecedented collaboration in financial services history.”