Fraud Prevention - Experian

1©2015 Experian Information Solutions, Inc. All rights reserved.
Experian Public.
Fraud &
Identity
Challenges

Experian Public.
Online trends are shifting the way our clients
conduct business
36%
of U.S. organizations interact
with customers in five or more
channels.
87%
Feel upset, frustrated or
betrayed when an online
transaction is declined
10,000
Estimated number of fraud
rings in the U.S. alone
2 Billion
The number of records exposed as a
result of data breaches in 2014
Source: 41st Parameter, Measuring Consumer Attitude on CNP Credit Card Declines
(December 2013)
Source: Experian, The 2013 Digital Marketer (2013)
Source: Risk Based Security/Open Security Foundation, Data Breach Quick View
(February 2014)
INDUSTRIALIZATION OF FRAUD RISE OF OMNI-CHANNEL
DATA BREACHES CUSTOMER INFORMATION

Experian Public.
Evolving e-commerce space needs to protect online
consumers
Source: Experian, The 2013 Digital Marketer (2013)Source: Cybersource 2013 Online Fraud Report (2013)
35%
Year-over-year growth
in mobile commerce
Mobile payment options used by smartphone owners
5%
Waving the
phone at a
payment kiosk
11%
Direct mobile
billing
14%
Mobile Web
payments or
WAP
15%
SMS text
message to a
business
2x
The international
fraudulent order rate
compared to the
domestic rate
Source: 41st Parameter Study
(December, 2013)
International
Domestic
Combined
Mobile
20%
EVOLUTION OF PAYMENTCROSS-BORDER COMMERCE
MOBILE COMMERCE
Non-mobile
Smartphone
Tablet
Non-Mobile
85%
Non-Mobile
80%
Combined
Mobile
15%
10%
5% 8%
12
%

Experian Public.
Consumers are being targeted – by everyone
The number of identity data sources is growing
V E H I C L E
R E G I S T R AT I O N
D E M O G R AP H I C
D ATA
C R E D I T
I N F O R M AT I O N
C H E C K I N G &
S AV I N G S
AC C O U N T S
S O C I A L
S E C U R I T Y
INTERNET
TRANSACTIONS
PROFESSIONAL
ASSOCIATIONS
M E D I C A L
R E C O R D S

Experian Public.
How does this impact client-centric fraud strategies?
 Reduces complexity of customer interactions
and increases straight through-processing
 Promotes compliance with (KYC) Know Your
Customer policies and regulations
ENTERPRISE VIEW
INCLUDING TRANSACTION
& IDENTITY RISK
IDENTITY ELEMENT
VALIDATION AND VERIFICATION
 Tailored compliance-oriented decisioning
strategies
 Ability to recognize devices used by
customers providing a safe and effective
customer experience
DEVICE INTELLIGENCE AS AN
INTEGRATED CAPABILITY
 Apply analytics to instantly quantify risk
with behavioral pattern detection and
predictive scoring
KNOWLEDGE-BASED
AUTHENTICATION (KBA)
JOINED WITH ANALYTICS
CUSTOMER EXPERIENCE
DRIVING ROI
 Limit friction by leveraging existing information
and risk-based authentication
 Effectively assess risk across all channels
 Minimize exposure and accelerate resolution
in event of a data breach

Experian Public.
Authentication
Current and future state
IDENTITY,DEVICE
& ACCOUNT DATA
IDENTITY,DEVICE
& ACCOUNT DATA
IDENTITY,DEVICE
& ACCOUNT DATA
RESULTS AND/OR
DECISION
CONSUMER ALERT
CONSORTIUM
DATA
CLIENT FRAUD ALERT TRIGGERS
CONSUMER AND CLIENT CONFIRMATION OF FRAUD ACTIVITY
CONSUMER
OR CLIENT-
INITIATED
ACQUISITION
OR ACCOUNT
TRANSACTION
AUTHENTICATION
PLATFORM
 PII data verification
 Identity transactions
and link analysis
 Analytics
 Knowledge-based
authentication
 Decisioning

Experian Public.
Fraud &
Identity
Capabilities

Experian Public.
Using risk-based authentication to combat fraud
Reduce fraud while increasing
straight-through processing and
quality of interactions across all
channels
IDENTITY
VERIFICATION
RISK-BASED
AUTHENTICATION
DEVICE
INTELLIGENCE
AND RISK
FRAUD
CONSULTING
STRATEGY DEVELOPMENT

Experian Public.
Know your customer
While delivering a positive experience
I D E N T I T Y V E R I F I C A T I O N
H O W W E H E L P
 Identity verification
 Out-of-wallet, knowledge-based
authentication
 Three factor authentication
 KYC (Know Your Customer)
compliance
VA L U E D E L I V E R E D
 Reduce losses from identity fraud
 Maximize straight-through
processing
 Improve customer satisfaction
 Improve staffing efficiency
 Ensure compliance
KNOWLEDGE
IQSM
PRECISE ID®
FOR
COMPLIANCE
PRECISE ID® FOR
ID SCREENING

Experian Public.
Identity verification
PRECISE ID® FOR
COMPLIANCE
KNOWLEDGE IQSMPRECISE ID® FOR
ID SCREENING
 SINGLE-PLATFORM, HOSTED
solution that operates across
product lines, enabling robust
fraud prevention and consumer
authentication
 EFFICIENT WORKFLOW via
streamlined and relevant output
specific to identity element
verification
 COMPREHENSIVE
AUTHENTICATION with
out-of-wallet questioning
 Delivers REAL-TIME OR BATCH
IDENTITY authentication services
over customer lifecycle process
points
 FRAUD SHIELDSM indicators and
high-risk condition warnings
 SINGLE-PLATFORM, HOSTED
solution
 Delivers REAL-TIME OR BATCH
IDENTITY authentication services
over customer lifecycle process
points
 Identity and identity element
validation and verification results
via PRECISE MATCHSM
 DETAILED REPORTING and
consultative resources
 DEVICE INTELLIGENCE and
risk assessment, evolutionary
platform
 KNOWLEDGE-BASED
authentication as part of layered,
risk-based authentication
strategy via a SINGLE SaaS
PLATFORM
 USE OF EIGHT DATA
SOURCES, providing multiple
categories of questions to
authenticate identity and prevent
fraud
 Consultative approach to
OPTIMIZE KBA (Knowledge-
Based Authentication) through
performance monitoring and
analysis
 HIGHLY CONFIGURABLE to
address business needs,
FLEXIBLE to adjust as needs
evolve

Experian Public.
Summary &
Next Steps
Precise ID®
for Compliance
How it works
PRECISE ID®
FOR
COMPLIANCE
An integrated component of the Precise ID platform solution that
brings together identity element validation and verification,
and GLB (Gramm-Leach-Bliley) - compliance authentication
and decisioning, into a single process to measure the risk of
identity and first-party fraud.
ACCEPT
REFER SUMMARY MATCH
RESULTS
 DETAILED RECORD INFO
 CREDIT PROFILE
HIGH-RISK INDICATORS
CONSUMER
DEMOGRAPHIC
DATA
EXPERIAN
FILE ONESM
DATABASEINQUIRY
PUBLIC &
PRIVATE
DATA
PRECISE ID
RULES
ENGINE
C U S TO M
D E C I S I O N
RESULTS
APPROVE
REFER
P R E C I S E M AT C H

Experian Public.
Knowledge IQSM
How it works
Q U E S T I O N S
G E N E R AT E D
PASS
 NAME + ADDRESS
 MORE INFO AS AVAILABLE
P E R F O R M A N C E R E P O R T I N G
A dynamic identity tool that evaluates true consumers by
questions generated from a wide dataset of personal information
and is used in combination with an identity-based risk score.
.
D E C I S I O N
KNOWLEDGE
IQSM
S C O R E & Q U I Z
E VAL U AT E D
WEBSITE
CALL
CENTER
FACE TO
FACE
NO
PASS

Experian Public.
Defend individuals
From identity and card theft
R I S K - B A S E D A U T H E N T I C AT I O N
H O W W E H E L P
 Surveillance for unauthorized use of
identity information
 Lost or stolen wallet protection
 Change of address monitoring
 Daily monitoring of credit reports
with alerts when key changes occur
 Dedicated fraud resolution team
 Reduce risk of identity theft
 Receive protection against losses
 Protect your reputation
 Reduce exposure and accelerate
resolution in the event of a breach
KNOWLEDGE IQSM
PRECISE ID® FOR
ACCOUNT
OPENING
BizIDSM
IDENTITY
ELEMENT
NETWORKSM

Experian Public.
Summary &
Next Steps
Precise ID®
for Account Opening
How it works
PRECISE IDSM
FOR
ACCOUNT
OPENING
An integrated component of the Precise ID platform solution that
brings together identity element validation and verification
and Fair Credit Reporting Act (FCRA)-compliant
authentication scoring and decisioning into a single process
to measure the risk of identity and first-party fraud.
P R E C I S E
M A T C H
 PRECISE
MATCHSM CODES
 HIGH-RISK
ATTRIBUTES
 INTERNAL
CHECKS
 EXTERNAL THIRD
PARTY CHECKS
RISK
SEGMENTATION
& DELIVERY
S C O R E
G E N E R A T I O N
GLB DATA
 REAL-TIME
SINGULAR
INQUIRY/
RESPONSE
 BATCH
AVAILABLE
PRECISE ID
DECISION
APPROVE
REFER
CAN BE COMBINED WITH FRAUDNET
A D D I T I O N A L
C H E C K S

Experian Public.
Precise ID for Account Opening
Key benefits
Streamline new account opening processes with increased verification
efficiencies while minimizing fraud loss with an early warning service and
meeting compliance requirements
Gives a
more
accurate
and holistic
picture of
consumer/
applicant
Provides early
warning of risk
of identity
alteration or
inconsistencies
Receive
summary-
level match
results
related to
identity
elements
Targets
identity theft
and potential
first-party
fraud and
non-payment
risk using
credit/non-
credit data
Quick
implementation
via Web-user
interface
Integrate
seamlessly
with internal
or consumer-
facing platforms
via XML
XML
XML XML
Receive
authentication,
identity theft
and first
payment
default scores
560
630
700

Experian Public.
Precise ID for Account Opening
Capabilities
Precise ID for Account Opening uses both credit and non-credit data assets
CAPABILITY
PRECISE IDSM FOR
ACCOUNT OPENING
Identity element validation and verification 
Fraud ShieldSM high-risk indicators 
Hosted decisioning 
Wireless phone verification 
IP address verification 
Knowledge IQSM questions 
Historical inquiry records checks 
Authentication score 
Identity theft score 
First payment default score 
National Fraud DatabaseSM

Early Warning Services shared fraud and account abuse records 
 Functionality using credit and non-credit data assets

Experian Public.
I D E N T I T Y T R A N S A C T I O N N E T W O R K
Identity Element Network
Identity Transaction Network
Adding over
two million
identity
transaction
records daily
Comprehensive
link analysis to
derive attributes
and score
Contains
up-to-date
transactional
data
Built from
Experian
data
Capture
consumers’
identity
elements
Retain
records 24
months for
identity
historical
view
Score –
portfolio/
batch
segmentation

Experian Public.
Improve detection
Reduce false positives, customer frustration & lost sales
D E V I C E I N T E L L I G E N C E & R I S K
H O W W E H E L P
 Application and open account fraud
detection
 Automated risk assessment and
issue resolution
 Case management, archiving,
searching link analysis and data
visualization tools
 Reduce fraud losses, bad debt and
revenue leakage
 Improve the quality of the customer
experience with straight-through
processing
 Avoid lost sales from false positives
and abandonment
 Reduce referrals and manual reviews
DEVICE
INSIGHT™
FRAUDNET
TRUST INSIGHT®

Experian Public.
Device intelligence and risk
DEVICE INSIGHT™ TRUST INSIGHT®
FRAUDNET
 INCREASE customer satisfaction,
retention and LTV – turning first-
time customers into trusted
customers
 Network effect of POOLED DATA
 DECREASE COSTS of
investigations and handling by
decreasing order ship time (OST),
touch rates and operational costs
of investigations
 Countermeasure to CNP losses –
POST EMV CHIPS & PIN
 DEVICE LAYER enables velocity
rules, negative lists and detection
of aggressive devices
 INCREASES detection rates (bad
devices) and DECREASES false
positives (good devices)
 Works across ALL DEVICES and
ALL OPERATING SYSTEMS
 IMPERCEPTIBLE to fraudsters
 Meets FFIEC requirements and
does not collect PII data
 Ability to detect fraud ON
FIRST ATTEMPT
 INCREASES top-line revenue
 UNPRECEDENTED
VISIBILITY to online activities.
 MULTI-LAYERED SECURITY
dramatically reduces false
positives and improves
detection rates in challenging
environments
 Detects nearly 100% of certain
SOPHISTICATED ATTACK
TYPES
.

Experian Public.
FraudNet
How it works
ULTIMATE
DEVICE INTELLIGENCE
ACCURATE
RULES ENGINE
SOPHISTICATED
LINK ANALYSIS
POWERFUL
INVESTIGATOR WORKBENCH
Market leading enterprise fraud management solution with a
highly accurate, device intelligence platform to detect fraud by
linking event traffic.
FRAUDNET

Experian Public.
FraudNet
Features
ULTIMATE
DEVICE INTELLIGENCE
ACCURATE
RULES ENGINE
POWERFUL
WORKSTATION
 Flexible & CONFIGURABLE
 Enables BETTER decision
making
 3rd party data with FULL
audit trail
 LINK analysis tools
 Highly ACCURATE, high
performance
 STRATEGY driven risk
models with over 500 rules
 USER configurable
 Effective across ALL internet
channels – OS & browser
agnostic
 PRIVACY compliant (no PII),
frictionless, tag-less and
covert
 PATENTED technology

Experian Public.
Complex to Confident in action
Improved audit
trail satisfies
regulatory
compliance
Booked
accounts
increased by
2-3% of the
portfolio
Streamlined,
consistent
authentication
system
enhances
efficiency
40% reduction
in manual
verification of
identity
discrepancies
S O L U T I O N
Experian’s Global Consulting Practice and Precise ID platform.
Intelligent automation made processing more efficient to identify
false positives
 A financial company needs to simplify its
verification system
 25% of customers require manual verification
 Delays due to this process caused the loss of significant
customers
B U S I N E S S C H A L L E N G E

Experian Public.

Fraud Prevention - Experian

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