Transcript Future of Information

©2014 Experian Information Solutions, Inc. All rights reserved. Experian Confidential.
Fraud Deep Dive
Using data to prevent fraud
Ori Eisen
Founder of 41st Parameter®, a Part of Experian
©2014 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein
are service marks or registered trademarks of Experian Information Solutions, Inc. Other product
and company names mentioned herein are the trademarks of their respective owners. No part of this
copyrighted work may be reproduced, modified, or distributed in any form or manner without the
prior written permission of Experian. Experian Confidential.
Start with a laugh…
3
©2014 Experian Information Solutions, Inc. All rights reserved. Experian Confidential.
Understanding the fraudscape
 Business of fraud is
GROWING in magnitude
 Modern fraudster is
HARDER to detect
 Fraud losses and operational
costs are INCREASING
4
©2014 Experian Information Solutions, Inc. All rights reserved. Experian Confidential.
The age of the data breach
1.2 Billion Passwords Stolen by
Russian Crime Ring
5
©2014 Experian Information Solutions, Inc. All rights reserved. Experian Confidential.
Malware is running rampant
25,000,000
Annual unique strains of
MALWARE
6
©2014 Experian Information Solutions, Inc. All rights reserved. Experian Confidential.
But it is not all bad news…
With 41st Parameter® businesses
are able to grow their business while
achieving industry leading fraud rates
 DECREASING attack rate
 REDUCED false positives
 MINIMIZED review rate
 SHORTENED time to detection
 INCREASED ROI
7
©2014 Experian Information Solutions, Inc. All rights reserved. Experian Confidential.
Precise ID® and Hunter® – Now with FraudNet
Platforms
Data
Credit, Location,
Biometric, etc.
FraudNet
ONLINE/MOBILE
FRAUD
and other
sources
TrustInsight
DIGITAL IDENTITY
RISK SCORING
Protecting:
 New account opening
 Account takeover
Hunter
Precise ID,
Prove-ID
APPLICATION
FRAUD
IDENTITY
AUTHENTICATION
Data Breach
Resolution
Identity-as-aService
 Bust-out fraud
 Online and mobile fraud
 CNP fraud
8
©2014 Experian Information Solutions, Inc. All rights reserved. Experian Confidential.
Fraud is now manageable with 41st Parameter®
and Experian
Customers experience the lowest fraud rates
in the industry:
 Less than 10 bps (industry average = 40-60 bps)
 Manual review of 2-3% (industry average = 24%)
Now we are shifting the focus to
recognize the good customers…
9
©2014 Experian Information Solutions, Inc. All rights reserved. Experian Confidential.
Focus on the GOOD customers
Up to 17% of CNP authorizations declined globally
 Some for credit reasons
 Some for suspected fraud
Annually 1.4 billion authorizations = $120 billion declined
Daily 3.8 million authorizations = $330 million declined
 Unwarranted declines cost everyone:
►
Merchants – sales
►
Issuers – interchange and fees
►
Consumers – goods and services
10
©2014 Experian Information Solutions, Inc. All rights reserved. Experian Confidential.
TrustInsight® – the latest innovation by 41st Parameter®
Recognize
Assess
Increase revenues
Identify digital
consumers across the
TrustInsight® network
Create a TrustScore™ for
each consumer at that
point in time
Enable more good
transactions to be completed
11
©2014 Experian Information Solutions, Inc. All rights reserved. Experian Confidential.
12
©2014 Experian Information Solutions, Inc. All rights reserved. Experian Confidential.
TrustInsight® demo
https://demo.trust-insight.com/demo/
©2014 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein
are service marks or registered trademarks of Experian Information Solutions, Inc. Other product
and company names mentioned herein are the trademarks of their respective owners. No part of this
copyrighted work may be reproduced, modified, or distributed in any form or manner without the
prior written permission of Experian. Experian Confidential.
#FOIC2014
©2014 Experian Information Solutions, Inc. All rights reserved. Experian Confidential.
Ori Eisen
Founder
41st Parameter®, a Part of Experian
e: [email protected]
t: +1.480.776.5500
©2014 Experian Information Solutions, Inc. All rights reserved. Experian Confidential.