Experian‘s experienced fraud prevention data network, which has existed since 1991 in other parts of the world, will be available to organizations in North America later this year.
“We have a 35-percent uplift in fraud detection rates when people use our Hunter product,” Robert Boxberger, president of the global data analytics and consumer credit reporting giant’s analytics arm, Decision Analytics, said Wednesday during his afternoon keynote speech during Fintech Nexus USA 2023 at New York’s Javits Convention Center. “Hunter, at its core, is a data networking product that utilizes all of the fraud committed by the member companies working with us right now.”
The fintech-focused version of Hunter for North America already has participation commitments from nine fintechs.
More than 450 organizations use Experian’s Hunter in 24 countries across different vertical markets. The product saves clients more than $6.5 billion each year.
Data the new network shares will give participants a line of sight into borrower activity across the fintech industry to match potential fraud risk.
“Especially in trying economic times, people tend to commit credit card fraud a little bit more when money gets tight,” Boxberger said. “What we did is we listened to our client base, we listened to our advisory group, and we developed a product that prevents fraud from an acquisition perspective.”
Data of fraudulent activity shared in real-time across network
Members of the network share fraudulent activity in real-time by contributing data that are securely linked. As fintechs secure new customers or verify existing ones, they can inquire against the network, be alerted to suspicious information when matched to other fraudulent activity, and take appropriate action. It aims to reduce false-positive referrals, improve the customer experience and improve fraud decision strategies.
“It provides a case management system so that you can change the strategies based upon what you’re seeing,” Boxberger said. “It comes with advanced machine learning-based analytics, so it’s not just matching logic.
“There’s a lot of analytics that go into this as well … What it does is lower your fraud rates. It allows you to have more confidence in booking applications that aren’t fraudulent.
“We use decisioning and analytics to determine the likelihood of an application being fraudulent based upon the information supplied to us by these fintechs. We’ve collaborated worldwide with this … We listened to our partners and the fintechs and came up with a great product that we hope everybody will utilize.”
Craig is a freelance writer and editor. He has toiled in various positions for various newspapers in Western Canada, including the Edmonton Journal and the Calgary Herald.
When he’s not busy fixing his home, you can find him experimenting with his slow cooker, finding the right grind (and coffee bean) for his AeroPress, reading fiction and non-fiction, mulling over director Ingmar Bergman’s works, and practicing his backward crossovers (both sides!) while ice skating.