Outperform: Socure's Sigma Identity Solution Stops Compromised Identities at Onboarding with 85% Fraud Capture

The industry’s traditional approach to identity verification and fraud prevention has become dangerously outdated.

Organizations struggle to understand digital identities holistically because static controls and siloed data prevent them from tracking how users’ behaviors change over time. This means they’re left with gaping holes in their fraud and risk analysis, resulting in poor user experiences, high false positive rates, and substantial revenue losses.

Socure’s Sigma Identity Fraud solution breaks new ground at customer onboarding by moving beyond viewing identity as a single snapshot in time.

Instead, it harnesses the power of Socure’s vast Network Identity Graph — a living, breathing portrait of digital interactions across the entire digital economy.

This unique, holistic view of identity allows us to assess a consumer’s historical behavioral patterns across institutions, geographies, and timeframes, uncovering anomalies that signal potential theft or tampering at the entity level. And by connecting identity data from 2,800+ organizations, the identity graph provides instant, accurate trust decisions at every touchpoint, forming a robust defense against even the most sophisticated financial crimes.

Let’s explore what recent performance improvements mean for Socure customers.

Sigma Identity Fraud Captures 85% of Fraud in the Highest 3% of Risky Applications; 89% in the Highest 5%

With the latest innovations introduced in Sigma Identity Fraud, Socure is closer than ever to achieving its mission of eliminating identity fraud at the new application or initial onboarding stage. Notably:

• Entity Profiler: The first machine learning solution to fuse digital footprints and session intelligence with authoritative data in a singular view of identity. By considering the recency, frequency, and context of historic transactions and behavior, this approach allows for a more dynamic and accurate assessment of identity and device ownership while adapting to new privacy standards.

  Socure’s system can confidently assert the identity of a consumer who has consistently utilized similar PII, IP geo-location, mobile devices, operating systems and browser languages over a span of multiple years and across varying institutions to create a unique and persistent device ID.

• Integrated Anomaly Detection: The ultimate shield against the most advanced Generative AI threats. This feature is expertly engineered to analyze identity behaviors across various levels – company, industry, and financial networks – identifying thousands of risk factors in real-time that legacy approaches miss. It excels in detecting unusual real-time user behavior patterns, offering unparalleled protection against sophisticated, high-volume fraud attacks.

  With this technology, customers are equipped to swiftly identify and respond to threats, such as a sudden increase in applications from device farms, tumbled emails, muling activity or unknown VoIP providers.

Sigma Identity v4 also leverages the signals from our Digital Intelligence module — which combines device intelligence, behavioral analytics, and an entity profiling service for a real-time view of online events — to go beyond antiquated device fingerprinting techniques that no longer work on modern, privacy-conscious devices and browsers, and evaluate what is typical for an individual across elements like email, IP, and location history.

The results? Sigma Identity Fraud now provides up to 85% third-party identity fraud capture at the top of the funnel in the riskiest 3% of applications — compared to the competitor industry average of just 37%. In the riskiest 5% of applications, Socure captures 89% of fraud.

This performance shines in the following use cases:

• New account opening at onboarding
• High-risk authentication

Sigma uniquely fuses every identity element from Personally Identifiable Information (PII), such as name, email, phone, address, date of birth, and SSN, with digital signals such as device characteristics, behavioral analytics, IP address, geolocation, relationships and historic transactional data from across Socure’s consortium of more than 2,800 customers.

This holistic view allows Socure to understand an identity as a whole and make connections that are unachievable when cobbling together a series of point solutions.

Incorporating this temporal element means the ability to see risk or trust in even the most recent transactions as they relate to historic behavior. That’s what drives up-to-the-second risk and trust decisions. This is a new era of identity behavior anomaly detection as opposed to transactional specific anomaly detection.

These techniques, combined with hundreds of data sources, feedback from thousands of customers, which means billions of records of outcome data enables our AI models to quickly and accurately identify risks associated with any presented identity.

Sigma Identity v4 is a one-of-one solution in the identity verification and fraud prevention market — and it’s only going to get better.

As seen below, our teams work around the clock to innovate and bring the best and highest-performing models to market. But the nature of fraud is change — and that requires constant investment in accuracy, which is a moving target. With this investment, our customers will see even better performance with each new model.

Delivering Continuous Value: Immediate Benefits at No Extra Cost

Socure’s product performance improvements directly translate into tangible benefits and value for our customers. Our enhanced fraud detection models keep more bad actors out of our customers’ ecosystems with lower losses — all while eliminating manual reviews, reducing both operational cost and the approval time for users for a smoother, near instant verification and decisioning experience.

One major credit card issuer wanted to see how Socure’s fraud prevention solutions would perform compared to their legacy vendor. They found that in the previous calendar year, partnering with Socure would have:

• Increased their third-party fraud capture rates from 57% to 82%, resulting in over $4.7M in annual loss savings
• Cut false positives to produce ~600K in new customer lifetime value
• Auto-approved 98% of customers who were subjected to friction in their current user workflow

Our core mission motivates us to keep pushing the boundaries of what’s possible, while innovating at an accelerated pace for our partners. We do not charge for model upgrades nor for any of these enhancements, so these improvements are available to all Socure customers today at no extra charge.

As we continue to increase the velocity of our innovation and improve our performance, our customers can expect their identity verification and fraud mitigation performance to keep improving.

See how Sigma ID helped stop a major fraud attack targeting financial institutions using stolen Massachusetts identities.