2012: A year of Identity & Fraud, Part Three

Latest Thinking concludes its look back over 2012 and some of the developments and events in the world of  Identity & Fraud.

In September, Experian’s 192business unit was selected by the Law Society as its preferred supplier of electronic identity verification tools for anti-money laundering purposes.

192business, part of Experian since it was acquired in March 2012, provides organisations with a range of identity verification tools, including personal data verification, fraud screening and document verification. These products were already used by 44 of the top 100 UK law firms to meet client due diligence obligations under the Money Laundering Regulations 2007 and to mitigate the risks of making payments in contravention of the UK financial sanctions regime.

Nigel Spencer, Chief of Commercial Affairs at the Law Society, said: “Experian and 192business have worked closely with the Law Society to ensure that its identity verification services are tailored to the specific needs of the legal sector. Accurate and efficient identity verification is vital for meeting the evolving challenges of complying with financial crime prevention rules.”

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In October, Experian announced an international partnership with iovation, the Device Reputation Authority™, to further enhance Experian’s global fraud prevention capabilities. iovation’s advanced device recognition software, its dynamic referencing and device reputation checks will increase the reach and effectiveness of Experian’s identity verification and fraud prevention services.

iovation brings together the world’s largest repository of mobile and online devices. It identifies one billion mobile devices globally and conducts 2.5 billion device reputation checks a year. It enables clients to assess the likelihood of transactions being fraudulent based on the device from which an application is made. Its sophisticated real-time risk assessment analytics stops some 150,000 potential online fraud attempts each day.

Results from searches against iovation’s device library could now be used to in conjunction with Experian’s fraud and identity capabilities including its ID verification tool, Prove-ID, card fraud prevention engine, Risk-ID, and account opening fraud prevention service Hunter.

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In November, Experian announced a renewal of their strategic partnership with Hitachi Capital UK, continuing to provide a range of acquisition credit risk, customer management, affordability and ID verification products, to support it through sustained growth and profitability.

Hitachi Capital UK, which operates extensively in the retail finance space, said it would extend its use of Experian’s Detect and Hunter fraud prevention services, improving its control of credit and fraud risk and the efficiency of its application processing environment. It would also use Experian’s Electronic Identity Authentication service to validate and verify customer identity in real time.

Andrew Davies, Head of Risk at Hitachi Capital UK, said: “Experian’s analytics and data expertise has given us far better control over both credit and fraud risk, and enables us to run a fast and efficient process at the point of application. This partnership extension will enable further improvements in these areas, extend the positive experience we provide to new customers across all areas of the business and to spot opportunities to strengthen and deepen relationships with our existing customers.”

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And in December, new research from Experian revealed that some of the most affluent sections of society owe millions of pounds in unpaid council tax. Experian has analysed £170 million of outstanding council tax debt owed to a broad range of rural and urban local authorities across England.

The analysis revealed that 17 per cent (£28 million) is owed by people from the most affluent sections of society. When applied to all outstanding council tax in England last year, (£600m), the research suggested that almost £100m is owed by the most affluent sections of society.The affluent non-payers were found mainly in the South East of England and include wealthy people living in the most sought after neighbourhoods, middle income families living in moderate suburban semis and successful professionals living in suburban or semi-rural homes.

The research also found that 32 per cent of Council Tax debt (£192million) is owed by people in low paid work, not claiming benefits and on the financial breadline. These included young people renting flats in high density social housing and lower income families in urban terraces across the UK. The research also indicated that these people will struggle to pay back their council tax debt in the short or medium term.

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Or click here for Latest Thinking’s earlier post about events in 2012, or click here for the first post.