LexisNexis Risk Solutions has unveiled a new product designed to help businesses mitigate synthetic identity fraud.
LexisNexis® Fraud Intelligence Synthetic Score analyzes hundreds of unique identity characteristics and events to help businesses identify inconsistencies and fraud patterns in application profiles. The tool utilizes data sets and high-powered analytics to examine application profiles associated with synthetic fraud to arrive at a three-digit numeric risk score ranging from 001 – 998.
The LexisNexis Fraud Intelligence Synthetic Score goes beyond traditional pass/fail criteria for applicant verification to provide fraud risk warning intelligence to investigative teams for more efficient application review. The solution predicts the likelihood an application will result in fraud: The lower the score, the lower the risk.
“Given the ease with which crime rings have been able to establish synthetic identities, this attack vector is a massive problem in the U.S. market,” said Julie Conroy, research director for Aite Group. “Aite Group estimates that synthetic identity fraud for unsecured U.S. credit products will total $2.04 billion in 2021, and it will grow to $2.42 billion in 2023. These estimates are conservative – if the amount of credit charge-offs attributable to synthetics are indeed in the 10% to 15% range that we’ve heard from many issuers, then the losses could be as high as $6 billion.”
“Fraud continues to grow significantly in terms of attacks and costs, making identity verification, fraud detection and customer friction harder to balance,” said Kimberly White, senior director of fraud and identity for LexisNexis Risk Solutions. “Synthetic identity fraud has become the preferred method for many criminals and we are pleased to bring to market a solution that provides a robust view of identity and fraud behavior to help address the escalating synthetic identity fraud problem in the U.S.
