Fraud Open Account Monitoring

Screening open accounts to identify
potential fraud in the portfolio

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The Fraud Open Account Monitoring service monitors the accounts of existing customers and screens against a vast array of data sources to identify potentially fraudulent activity.

The tool can uncover a range of fraud types including identity theft and impersonation.

Using a combination of unique data sources, the Fraud Open Account Monitoring service from Experian screens existing customer and collections accounts and monitors information to identify suspicious activity.

The service will help lenders identify:

How can we help you?

The Fraud Open Account Monitoring service screens existing customer and collections accounts against the specified data sources and monitors information to identify any suspicious activity.

It highlights where information matches against that which could indicate suspicious activity and is worthy of investigation. It provides this information, along with prioritisation of accounts according to fraud likelihood and consulting to support the organisation in dealing with the outcome of the exercise.

  • Reduce losses from fraud by preventing bust-out and reducing exposure
  • Reduce collections costs by preventing fraudulent cases entering collections
  • Protect customers from account takeover and identity theft
  • Identify and stop fraud rings hitting the organisations multiple times
  • Continually improve fraud protection with a cycle of evaluation and enhancement
  • Share data with other organisations to prevent losses across the industry

Screen against a vast array of data sources to identify fraudulent activity

To utilise the service the organisation simply sends the customer data to Experian in a standard data format.  Fraud Open Account Monitoring then cleanses the data and matches the client account data against the specified data sources. Multiple rules are applied against each data source to provide confidence in the results.  The results are provided in a number of formats including a Health Check summary which provides high level view of the quality of the account portfolio.

The detailed result file contains results for each rule applied with matches to each data source shown separately for granularity.

The file can be used for referral and further investigation before action is taken as well as input into the customer management system to ensure future applications/facility requests are subject to additional scrutiny.

Uncover identity theft and proactively detect fraud rings

By regularly reviewing open accounts, the Fraud Open Account Monitoring service allows organisations to check customer accounts on a regular basis, proactively examining for potential fraud, including fraud rings and instances of identity theft that might otherwise have gone unnoticed.  Fraudulent accounts can then be dealt with effectively, preventing fraudulent accounts from entering or progressing through collections processes.

By proactively screening and monitoring existing accounts organisations can reduce losses from fraud by reducing and removing exposure on accounts. In addition, by preventing fraudulent accounts from going into collections, there is no investment in collecting the debt.  Organisations are also able to provide a valuable service to customers, protecting them against the impact of identity theft and also identifying fraud activity which the genuine customer may not be aware of.

Fraud prevention tools can use the data from the service to perform further investigation and analysis that can prompt the identification of connections between activity and the identification of Fraud Rings.

Experian's proprietary data sources included the Fraud Open Account Monitoring service are:

Suspicious Activity Score

The Suspicious Activity Score is Experian’s unique household level fraud risk assessment. It is a household level assessment of the likelihood of fraud being perpetrated at an address. The Suspicious Activity Score can be used throughout the credit life cycle, wherever lenders want to better understand the likelihood of fraud at an address. This data can also be utilised in Hunter as a valuable indicator of suspicious activity.

Accommodation Addresses

Experian's Accommodation Addresses highlight non-residential addresses, including mailing houses and addresses providing secretarial support. This data can be included in Hunter as an indicator of fraudulent activity.

Victims of Fraud File

Experian offers a unique service for victims of fraud.  This enables innocent parties to clear their name after identify theft and other frauds have occurred.  This database allows companies to quickly ascertain if they are dealing with a genuine applicant. Hunter customers can use data containing previous victims of fraud, who have contacted the Experian Consumer Help Service for assistance in correcting their credit file, to analyse there is a threat of impersonation fraud or if the applicant is genuine.

Experian’s Global Authentication services

Experian has embarked on a programme to deliver identity authentication services, utilising electronic data around the world, to those countries that have the demand and the data to support such services. These services are designed to help organisations be compliant with the regulators and also to address the issue of identity risk. They allow organisations to reduce costs and fraud losses, complete the fulfilment process faster, reduce ‘drop offs’ - when individuals drop out of the process when asked to present documents - and generally improve the customer experience.

As part of this programme the Fraud Open Account Monitoring service has recently been launched to screen existing customer and collections accounts, monitoring information to identify any suspicious activity.  The rapid nature of the service means that customer accounts can be screened very quickly to identify accounts with a high fraud risk.

Business Case

To demonstrate the value of this new service, a file of up to 500,000 records can be processed free of charge. Please contact us by phone, email or web page form to discuss this in more detail.

Fraud in the financial services sector - Using data intelligence to stop fraud before it starts

This White Paper examines the problem of application fraud for financial services organisations and explores how implementing an effective fraud prevention system and processes can have a significant impact on the organisation’s bottom line.

With application fraud costing financial services organisations somewhere in the region of US$ 2 trillion a year and rising, it is a problem that cannot be ignored. Fuelled by the growth of the internet, fraud has over the last ten years transitioned from cottage industry to a mass-market crime opportunity operating on a global scale.

With fraud rates continuing to rise and with the authorities struggling to control the complex, international problem it is up to the financial services sector and the wider credit industry to make it uneconomic for the criminals by preventing frauds at the point of application.

Fraud is a non-competitive issue and all industry sectors need to work together to combat it. The effective use of data, shared at both organisational and industry level, combined with algorithms and effective screening mechanisms can ensure that organisations can combat fraud before it affects profits, reputations and society as a whole.

Increased data sharing is a must, to allow those organisations being targeted to have the widest possible set of data to compare applications and find the patterns and links that deter fraudulent applications and stop fraud losses before they start. Depending on the current fraud protection measures, ROI can be achieved in a matter of weeks and certainly months.

Fraud Risks at the first ever African-hosted World Cup

This whitepaper explores the vulnerabilities of the South African financial services sector and provides an overview of best practice mitigation strategies for reducing the risk of fraudulent activities during and after the World Cup tournament.  From simple processes to complex fraud detection systems, there is a wide range of solutions which can be adopted to reduce the exposure to fraud during the tournament and for years to come.

During June and July 2010, South Africa played host to the FIFA World Cup tournament.  This prestigious event consists of 64 matches played in ten stadiums spread over nine South African cities.  It was expected that approximately 450,000 visitors from all over the globe visited South Africa during the event.

As hosts to the FIFA World Cup, South Africa benefited from many of the associated socio-economic advantages that often accompany such an event.  Improved public transportation, local facilities, increased employment and many other positive factors are all associated with global sporting events like the FIFA World Cup.

Unfortunately, in addition to these opportunities, such events can also attract criminals with increased opportunities to commit fraud.  Large volumes of foreign visitors and increased spending during such an event all provide cover for fraudulent activities.  Financial institutions are likely to feel the impact of such fraud more than any other collective business as they are at risk from a number of different criminal operations.  In order to be protected against such fraud, financial services organisations will have to be prepared and processes in place which will protect the institution without impacting the legitimate consumer. 

An event such as the FIFA World Cup is an ideal opportunity for fraud and risk managers to strengthen their mitigation strategies which can be continually utilised after the event to provide a more solid platform for business in the future.  Fraud and risk managers should look to the tournament as a means to gain exposure within their businesses to leverage this exposure to encourage investment in fraud prevention processes and systems.

Tackling the issue of bust-out fraud

The white paper concentrates on the methodologies associated with bust-out, how it is perpetrated and how to predict bust-out fraud.

Bust-out fraud is a growing area of fraud for the financial services industry. For organisations across the globe, bust-out fraud is a very topical issue and the losses incurred are becoming significant.

In the UK, all the major banks have reported an increase in bad debt and provisions in the last two years, part of which could be attributed to this type of fraud.

Identification of bust-out fraud is difficult for many organisations, although Experian’s research shows that there are many strong predictors including current account behaviour and transactional patterns, credit bureau trend data and ‘event’ trigger data. 

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