To combat a growing threat that’s expected to drive $48 billion in annual online payment fraud losses by 2023,1 Experian today announced the launch of Sure Profile.
Experian is the first company with an offering to combat synthetic identity fraud that is integrated into the credit profile with market-leading assurance. With Sure Profile, Experian is putting “skin-in-the-game” by sharing fraud losses with the lender if the losses occur on assured profiles.
Sure Profile validates consumer identities, detects profiles that have an increased risk for synthetic identity fraud and helps cover losses resulting from synthetic identity fraud for assured profiles.
Leveraging the capabilities of the Experian Ascend Identity Platform™, Sure Profile utilizes Experian’s industry-leading data assets and data quality to drive advanced analytics that set a higher level of protection for lenders. Powered by newly developed machine learning and AI models, Sure Profile offers lenders a streamlined approach to define and detect synthetic identities early in the originations process.
Experian’s Sure Profile differentiates between real people and potentially risky applicants, so lenders can confidently increase application approvals with less risk.
“Experian can confidently define and help detect synthetic fraud. That's why we can help stop it,” said Craig Boundy, CEO of Experian North America. “Experian stands behind our data with assurance given to our clients. It’s better for lenders and it’s better for consumers.”
Experian expects to authenticate most credit applications through Sure Profile. In the cases where the identity can’t be assured, the company will deliver additional fraud risk indicators, so that lenders can take the right next steps to verify the potential borrower’s identity and prevent fraud.
Synthetic identity scope
To date, detecting synthetic identities has been a significant challenge for lenders because there’s not an industry standard or a single definition that can be used to establish the legitimacy of an identity. In addition, understanding the financial impact of synthetics has been difficult for lenders as losses tied to synthetic identity fraud are typically categorized as defaults or “bad debt.” With Sure Profile, Experian reinforces its position as a leader by creating a standard set of criteria to define a synthetic identity.
Synthetic identity fraud is the fastest growing type of financial crime in the United States, accounting for 10%–15% of lender losses2 each year. Experian data shows that 9%–15% of credit card losses are due to synthetic fraud.
To create synthetic identities, fraudsters use a combination of real and fake information, such as names and social security numbers, to create “Frankenstein IDs,” which are used to obtain credit. Synthetic identity fraudsters may also add the identities they create to an existing credit account as an authorized user. In either case, the identity is reported by the financial institution to credit reporting agencies, creating a new record associated with the fraudulent information. Once established, the synthetic identity can be used to set up additional fraudulent accounts.
Sure Profile complements Experian’s already robust set of identity protection and fraud management capabilities that address fraud and identity challenges, including account openings, account takeovers, e-commerce fraud and more. In 2018, Experian launched its free Child ID Scan service and designated September 1 as Child Identity Theft Awareness Day. In 2019, Experian was also the only credit bureau named as one of the 10 participants in the initial rollout of the Social Security Administration’s new electronic Consent Based Social Security Number Verification (eCBSV) service.