|Advanced scoring and analytics reduce identity theft, fraud|
LexisNexis Risk Solutions now offers FraudPoint solutions to help lenders and financial service firms prevent fraud by analyzing and predicting behavioral patterns of suspicious identities. Benefits include being able to approve more applications for services, while limiting fraud exposure, using advanced scoring methodologies and the industry’s largest compilation of identity information.
FraudPoint lets lenders set aggressive goals for marketing services to their clients, while limiting fraud exposure to approximately 5-10% of applications, generating fewer false positives. In a highly regulated financial services industry where mistakes can cost customers millions of dollars, FraudPoint solutions enable lenders to analyze the applications from those who pose the greatest fraud risk. This reduces unnecessary approval delays for legitimate customers and allows investigators to focus on applications that are most problematic, without disrupting the customer or delaying the on-boarding process.
FraudPoint solutions, which consist of LexisNexis FraudPoint Score and FraudPoint Attributes, use advanced LexisNexis linking technology called LexID to collect information from 400 million identities and more than 150 million businesses records in milliseconds.
FraudPoint Score consists of three capabilities: three-digit 300-999 Fraud Score, superior fraud segmentation via Fraud Type Indices, and specific Fraud Warning Codes. They allow institutions and fraud investigators to more accurately detect and investigate fraud. In sample validations, FraudPoint Score has been found to identify up to 75% of fraudulent applications in less than 6% of a financial institution’s new account originations.
“In the financial world, balancing the threats of identity fraud with the pressure of providing superior support for legitimate customers has always been a significant challenge for lenders,” says Jim Christiansen, vice president scoring, LexisNexis. “With our FraudPoint solutions, lenders can significantly increase their competitive advantage without negatively impacting their customer’s experience.”
[This article was posted on May 15, 2012, on the website of ABA Banking Journal, www.ababj.com.]
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