Experian launches new tool to detect fraudulent credit applications
Credit reference agency Experian has launched a service to assist businesses in detecting fraudulent credit applications and transactions.
Experian Fraud Score is an independent tool that will use insights from billions of credit applications to identify customers attempting to fraudulently secure credit.
Experian’s decision to launch a new service comes after a bumper financial year in 2021, when it saw profits rise by 34 per cent on the previous year.
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Eduardo Castro, managing director, Identity and Fraud at Experian UK and Ireland, said that organisations of all kinds will benefit from the service, irrespective of whether they are experienced in fraud detection or whether this is their first step.
“Machine Learning is the foundation on which new fraud prevention systems are being built and thanks to Experian Fraud Score, new and emerging businesses – as well as established ones – can leverage the benefits,” he said.
“Whether an organisation is taking its first step into fraud prevention, or it has a sophisticated team with multiple technologies and capabilities already in place, the solution will support businesses of all sizes in the ongoing, evolving battle against fraud.”
The launch comes as incidents of fraud continue to rise across the UK. Earlier this week, the Office for National Statistics announced that documented scams had increased by 4.5 million in the two years to March 2020.
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The new Experian Fraud Score service works by scoring customers between one and 1,000 on the fraud risk associated with the interaction. A low score signifies a lower risk.
A score – which can be obtained immediately – is generated after submitting basic information such as name, address, and date of birth. In some instances, additional insights into the decision will also be made available.
Users of the service will be able access the full suite of Experian CrossCore services and functionality, including identity and age verification, device intelligence and other fraud prevention tools.
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