Experian, a global information solutions provider, today announced an innovative fraud detection solution that integrates data authentication with consumer challenge questions to create the most comprehensive approach for detecting fraud and managing the associated risk.
The new product, Knowledge IQSM, is the first system to merge two essential elements in the fight against fraud.
Knowledge IQ resides within, and is powered by, Experian's well-known Precise ID suite of identity authentication and fraud detection tools. Knowledge IQ assesses risk by posing a series of challenge questions to an applicant to enable a client to assess the consumer's identity risk.
"The integration of a scoring component to assess applicant risk coupled with challenge questions will make for a powerful tool in the detection and prevention of fraudulent activity," said Robert Boxberger, executive vice president, Washington Mutual Card Services. "We've long been interested in the features provided by these individual elements. We're pleased that Experian is taking the lead to develop this integrated solution that addresses business and consumer requirements."
When a consumer applies for credit, the Precise ID platform analyzes the applicant information and, using advanced predictive analytics, returns a score. The score is based on the correctness of the applicant-supplied information to Experian. Based on the client-tailored score threshold, Precise ID will either authorize the process to continue or seamlessly interact with Knowledge IQ to pose additional challenge questions to the consumer. The combination of these components allows verification of the consumer's identity and presents the most accurate and comprehensive "picture" of a consumer. The system provides fraud protection and quick and actionable results for the client, with minimal impact to customers.
"The integration of Precise ID and Knowledge IQ will provide immediate benefits to users, including quicker detection of potential fraud, reduced operational expenses and improved risk management," said Gary Kearns, president, Experian's Decision Analytics. "Experian is the only company offering a comprehensive system incorporating analytics-based fraud risk scores, known verified fraud data and interactive questions. Additionally, Experian's solution is the only one to offer versions that comply with both the Fair Credit Reporting Act and the Gramm-Leach-Bliley Act."
Experian's Decision Analytics business combines data intelligence, analytics, software and consulting to provide credit risk, identity and fraud solutions that help clients increase profitability and improve performance. Its enterprise-wide decisioning solutions enable clients to manage and optimize risk; prevent, detect and reduce fraud; meet regulatory obligations; and gain operational efficiencies. Trusted by leading businesses worldwide, Experian's Decision Analytics business provides the intelligence to make accurate and informed decisions to help clients better manage their customer relationships.