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ID Insight Expands Financial Fraud Prevention Platform

New enhancements protect phone and digital communications channels

Anti-fraud technology leader ID Insight today announced the most comprehensive update yet to its fraud prevention platform, responding to the industry’s need for a more robust solution for verifying identity profile changes in an increasingly complex, multi-layered fraud environment.

ID Insight’s new solution will help a wide range of financial institutions reduce fraud losses and improve compliance processes while achieving a more than 10-to-1 return-on-investment ratio through more efficient customer profile-change verification processes. The company, which maintains the largest proprietary database of financial service customers’ address changes, is countering a shift in financial fraud that exploits non-monetary setup events – such as phone and email changes – as a precursor for account takeover.

“ID Insight started more than 13 years ago to fill a specific market need: fraud prevention related to address changes,” said Adam Elliott, founder and president of ID Insight. “As the illicit business of financial fraud continues to evolve, so have our solutions.”

The shifting fraud landscape and a specific customer need for better intelligence about phone number changes inspired ID Insight’s latest platform expansion. An ID Insight customer – and one of the country’s largest financial institutions – reported a sharp rise in account takeover cases where fraudsters first changed a customer’s phone number before requesting a large ACH transfer. When the bank called to approve the transfer, the identity thief answered the call, posed as the legitimate customer, and falsely verified the request. In response to this scheme, ID Insight leveraged its extensive profile-change database to tailor a solution that also included phone, email and IP address verification.

“Our customer’s urgent need reflects how account profile information beyond addresses are all emerging as setup events for account takeover,” Elliott said. “Without a solution for fraud identification for all pieces of customer information, financial institutions may be unwittingly sending account verification details and fraud alerts directly to criminals.”

With the rise of mobile banking, online account opening and mobile wallet technologies, mobile phones and computers are vital communications channels for both customers and financial institutions. Having controls in place to ensure that phone numbers, email and IP addresses in the customer profile actually belong to the legitimate customer is critical to reducing fraud risk.

Despite advancements in point-of-sale transaction security, financial institutions are more vulnerable to fraud than ever before. Data breaches have made consumer identity data available in bulk on the black market, exposing more and more customers to account takeover and leaving banks open to fraud losses. ID Insight’s expanded solution helps defend against these attacks by using data and analytics to separate fraudulent profile changes from legitimate customer activity, while significantly improving fraud detection rates.

The updated solution also allows customers to accept data via a flexible API, run the data through a configurable flow based on risk, business process and cost requirement, and return results that the client can act upon for fraud investigation and compliance. ID insight solutions are also easily accessible through many of the nation’s core banking platforms.