- Account Origination Fraud is Widespread - Sixty-three percent of financial institutions have been impacted by account origination fraud. More than half (55 percent) of financial institutions have experienced financial losses, productivity losses and customer attrition as a result of account origination fraud.
- Account Origination Fraud is Costly - Seventy percent of financial institutions have reported losses exceeding $100,000 from account origination fraud with 21 percent reporting losses greater than $2 million. Productivity losses may also play a significant factor when measuring the true cost of fraud, as organizations spend an average of 24 hours investigating, reporting and remediating incident; 25 percent require three times that amount (76 hours) from investigation to customer communication.
- Account Origination Fraud is Growing Problem - There is a growing sentiment among surveyed executives who expect account origination fraud to grow during the next five years. Twenty-two percent of financial institutions believe that account origination fraud is a serious risk today, but 34 percent believe it will be a serious risk five years from now. Additionally, 41 percent believe that account origination fraud is a higher priority than other fraud initiatives.
Neustar matches digital identity data, such as IP addresses and cookies, with traditional off-line identity verification, such as name, address and phone number to provide a holistic view of a new customer and the devices being used to create new accounts, enabling organizations to distinguish new customers from cyber criminals with confidence. Key benefits and features of Neustar Fraud Detection Solutions include:
- Evaluate Risks During Account Origination - Match phone attributes, identity risk attributes, IP intelligence and fraud risk models to verify a user's digital identity.
- Reduce Fraud and Increase Acceptance Rates - Validate offline identity with digital identity verification to improve decision making accuracy.
- Provide Safer Transactions - Identify users across online and offline touchpoints, including phone identification, digital identification, device identification and user location.
- Improve The Customer Experience - Quickly and accurately identify new customers from fraudsters across online and offline touchpoints, including phone identification, digital identification, and user location to protect financial institutions and customers alike.
- Privacy by Design - Data collection and matching is accomplished via user opt-in consent.