Socure, a leading provider of digital identity verification solutions, has launched a groundbreaking tool called the Identity Manipulation Risk Score. This new predictive risk score is designed to combat first-party fraud abusers who exploit the digital economy on a large scale. The use of AI technology makes this capability even more powerful.
The Identity Manipulation Risk Score is integrated within Socure’s Sigma First-Party Fraud solution, which utilizes a vast cross-industry consortium to analyze dispute histories, payment denials, and account closures in real-time. This consortium includes major financial institutions, fintech companies, payment platforms, sports betting organizations, and merchants, providing a wide-ranging source of fraud intelligence.
First-party fraud, where individuals use their own identities to commit fraudulent activities, is a costly problem for businesses, amounting to over $100 billion annually. Unlike third-party fraud, which involves stolen or synthetic identities, first-party fraud is harder to detect because the fraudsters use their genuine credentials. Repeat abuse is a significant issue, as shown by a Socure survey revealing that nearly half of first-party fraudsters continue their fraudulent activities because they were successful in the past.
With the introduction of the Identity Manipulation Risk Score, organizations can more accurately assess the risk of identity manipulation at key decision points such as account opening, high-risk transactions, and dispute resolution. This score helps detect behaviors like individuals using different contact information to exploit multiple organizations while using their true identity.
Socure’s Sigma First-Party Fraud solution leverages real-time data from over 210 million contributed identities, 325 million accounts, and more than 20 billion transactions to identify early signs of abuse, predict fraudulent behavior, and prevent repeat fraud before it becomes more severe.
The rise of first-party fraud poses a significant challenge for financial institutions, fintech firms, and digital platforms. Traditional fraud detection methods struggle to combat this type of fraud, making solutions like Sigma First-Party Fraud essential in leveraging AI and cross-industry data to predict and prevent fraudulent activity effectively.
The Identity Manipulation Risk Score is built on Socure’s advanced AI models and the largest first-party fraud intelligence consortium, offering predictive risk scoring, consortium-driven insights, real-time risk monitoring, and adaptive machine learning models to refine fraud detection continuously.
Ori Snir, Head of Product Management for Fraud and Identity Solutions at Socure, emphasizes the importance of proactively assessing risk before financial losses occur using AI-powered predictive analytics. The launch of the Identity Manipulation Risk Score marks a significant step forward in stopping bad actors in their tracks and safeguarding organizations from fraud.
In a landscape where traditional fraud tools struggle to keep up with evolving tactics, Socure’s Sigma First-Party Fraud solution sets a new standard for detecting first-party fraud. By accurately identifying fraud risks early on, businesses can mitigate operational costs, reduce false positives, and create a more secure financial ecosystem.
The Identity Manipulation Risk Score is now accessible through Socure’s RiskOS platform and API integrations, providing organizations with a powerful tool to combat first-party fraud and protect their operations from fraudulent activities.