In today’s digital world, identity verification is becoming increasingly important as the threat of identity fraud continues to grow. In 2017, there were more than 1,200 data breaches, with more than 2 billion separate identities stolen. Already in the first half of 2018, identity theft and synthetic identity attacks have more than doubled from Q4 of 2017.

Traditional identity verification uses static rules and linear models applied to credit bureau data, which is often stale and easily accessible to fraudsters because, if we’re being honest, your birthday, Social Security number, and mother’s maiden name have already most likely been leaked in some previous data breach. So with these kinds of numbers, it’s clear that companies must rethink how best to originate user accounts online and develop new approaches for verifying their users

Socure SVP and Co-Founder Johnny Ayers and Simility CTO and Co-Founder Kedar Samant recently hosted a webinar to discuss their coordinated machine-learning approach to managing the customer life cycle from account origination to device fingerprinting on-going transaction and authentication monitoring. In a case study discussed in the webinar, the two companies had joined forces to improve a customer’s auto-approval rate from 62% to 83%, decrease fraud losses by 80%, and cut KBA usage by 70%. In short, the combined machine learning approach works to improve automation and efficiency when verifying and approving users, thus reducing friction and also minimizing the approval of fraudulent accounts.

Samant notes that there are three chokepoints in the user life cycle: account origination, authentication, and transactions or fraud prevention. Simility takes information such as historical user data, behavioral analysis, device data, and PII checks to determine a user’s credibility in the account origination approval process.

Then, Simility relies on Socure’s technology to handle the user’s identity verification. Socure’s ID+ solution, does this by sourcing an enormous amount of consumer-related information across a user’s entire identity, including the trails that real people leave on the internet.

“Every consumer leads a very digital life. We email, text, post, create cookies—and this leaves a huge amount of digital breadcrumbs about normal, good consumers,” Ayers says. ID+ correlates all of these “breadcrumbs” across thousands of attributes to create a holistic and accurate view of a customer’s identity. By the same token, fraudsters won’t have a lifetime’s worth of connections and attributes on the internet or elsewhere, and ID+ will be able to differentiate between the real Johnny and someone that’s pretending to be.

“This allows us to more accurately classify good versus bad consumers, which only machines can do, versus human intuition alone,” Ayers says. Indeed, Socure’s ID+ has typically provided a 60-85% reduction in identity fraud losses, and decisions that are 10 times more accurate than a legacy credit bureau’s. The ID+ technology also delivers over 70% reduction in friction from manual review of users’ applications. This is particularly important when it comes to approving the accounts of millennials, members of Generation Z, or immigrants, who may not have any credit and thus don’t seem “real” to the credit bureaus.

For Simility, Socure’s identity assurance is a vital part of the puzzle. Once the identity verification is complete, Simility is able to add its device profiling technology to make a decision for approval.

“Verifying user identity is the most important part of account origination,” Samant says. “Our partnership with Socure helps both of us provide a solution to onboard customers; we do the risk profiling of identity using Socure and then do the overall orchestration for onboarding workflow using Simility.”

The trend in identity fraud is moving away from existing accounts and toward account origination. That’s because stolen data is a goldmine for fraudsters to attack at new acquisition, and identity theft at the point of new account opening has doubled or tripled in recent years.

Watch the Socure + Simility webinar on how to prevent fraud at account opening and improve the end-to-end customer life cycle here.

Learn more about how Socure partners with companies to amplify their analytics for identity verification and fraud.

Topics: Identity Fraud, Identity verification, Credit bureau, Identity theft

Socure

Socure

Socure is the leading platform for digital identity trust. Its predictive analytics platform applies artificial intelligence and machine learning techniques with trusted online/offline data intelligence from email, phone, address, IP, device, velocity, and the broader internet to verify identities in real time. The company has more than 400 customers across the financial services, gaming, telecom, and e-commerce industries, including three of the top five banks, seven of the top 10 card issuers, three of the top MSBs, the top payroll provider, the top credit bureau, and over 100 of the largest and most successful FinTechs. Marquee customers include Chime, Varo Money, Public, Stash, and DraftKings. Investors include Accel, Commerce Ventures, Scale Venture Partners, Flint Capital, Capital One Ventures, Citi Ventures, Wells Fargo Strategic Capital, Synchrony, Sorenson, Two Sigma Ventures, and others.

Socure has received numerous industry awards and accolades, including being named to Forbes America’s Best Startup Employers 2021, being awarded Best New Technology Introduced over the Last 12 Months – Data and Data Services at the 2020 American Financial Technology Awards (AFTAs), being ranked number 70 in Deloitte’s Technology Fast 500™, being listed as a Gartner Cool Vendor, being recognized by Forbes as one of the Top 25 Machine Learning Startups to Watch, being named to CB Insights: The FinTech 250, and being awarded Finovate’s Award for Best Use of AI/ML, to name a few.