The business challenge
Application fraud can substantially impact profitability, increasing costs, bad debt and write-offs. Most frauds are committed by the applicant putting false details on their application in order to improve their rating by the organisation. If the applicant cannot meet their commitment the organisation could incur collection and recovery costs plus the potential bad debt write-off.
Serious fraud is rarer, but the size and speed of the losses can be much more significant. It often involves impersonation or identity theft, with organised crime rings carrying out sophisticated frauds with carefully targeted applications.
The most effective strategy is to prevent the fraud at the point of application. This requires the authentication of genuine customers and the detection of potentially fraudulent applications before the customer is accepted without adversely affecting customer service level and speed of decisioning.
The answer
Conventional underwriting techniques do not always identify fraud, so Experian offers a complete authentication and application fraud prevention proposition to stop fraud losses before they start.
As an automated system, fraud detection is rapid and efficient against both hard and soft fraud.Application fraud detection is powered by the advanced Hunter fraud detection system. As an automated system, fraud detection is rapid and efficient against both hard and soft fraud.
Designed to be highly configurable, the system can be used for all types of application fraud and across multiple products and services.
Authentication is powered by Universal ID Check.
In the UK, Detect is an application fraud prevention system that can be integrated with other systems such as Hunter. It is a real-time, online, anomaly checking system that checks application data against a variety of Experian databases, including the credit bureau. Read more about Detect.
Testimonial
“The deployment of Hunter has made a huge impact as it has helped us to avoid losses, save time and money and maintain a low cost of operation. Hunter integrated well with other technologies for risk management and gives us the flexibility to adapt the system and rules to combat new fraud trends so we always stay one step ahead of fraudsters’ increasingly cunning tactics.”
Chief Risk Officer of Renaissance Consumer Finance