This week, Redmond data technology company Versium, launched its Predictive Fraud Score solution to accomplish just that!
Fraud struck close to home when Versium’s CEO Chris Matty, fell victim of fraud just last month. Most frustrating is that Chris realizes how the fraudsters could have easily been prevented.
Mr. Allen Jost, who is one of the co-creators of FICO’s “Falcon Score,” the most recognized fraud solution in financial services worldwide, said, “Versium has taken the most complex scoring concepts, figured out how to factor in unique online and offline behavioral data and integrate this with an enterprise’s existing data to realize more accurate predictive models. Most important is that the output, being a simple score, is easy to access, understand, act upon and measure performance.”
“The beauty of our Fraud Score is that it allows a company to be proactive versus reactive; it’s easy to understand and very accurate. We’re helping organizations get in front of fraudulent activity before it occurs by predicting a fraudulent accounts before the fraudster is able to commit a fraudulent act, enabling companies to immediately prevent it,” said Chris Matty, Versium CEO. “We have been testing this solution with numerous commercial partners in the financial, payment and ecommerce industries and are seeing fraud capture rates as high as 80 percent with false positive rates as low as four percent.”
Fraudsters have become very good at stealing a consumer’s identity and applying for credit or opening a new ecommerce account. Traditional authentication and prevention efforts have become less effective as the fraudsters are more adept at getting around these methods.
The problem stems from the account issuer having no first-hand knowledge of the applicant. Credit reports, Social Security Number (SSN) checks and background questions are becoming ineffective as modern day fraud perpetrators have the ability to illegally replicate a valid user’s profile. Versium’s LifeData and patent pending online profiling engine holds a living history of the applicant including their Internet and social network activity.
This unique insight provides powerful data signal for the company’s machine learning and predictive algorithms. Given as little as an email at account opening Versium can return a score instantly indicating the fraud risk associated with the new account.
A fraudster who attempts to use a stolen credit card or create a new identity from a real SSN, often called synthetic fraud, will yield a high risk score and can be stopped up stream from traditional prevention methods based on the predictive power of Versium’s LifeData technologies.
Versium is currently in full commercial beta trials with its Fraud Score solution. [24×7]