Socure reports on First-Party Fraud trends, announces new product and consortium | Biometric Update
Summary
“With the liability burden removed from consumers, some industry leaders worry the shift will make lucrative first and second-party fraud scams even more enticing, fueling a wave of attempts to exploit the system,” said Cook in a statement to Biometric Update. A shared lexicon that categorizes FPF as a type of fraud rather than credit risk can allow the industry to normalize data collection and reporting that “will help reveal predictive insights into fraudster patterns across institutions,” says Cook. Sigma will be able to mitigate bad faith disputes and defaults through analysis of financial histories that aren’t a part of credit reporting in order to identify repeated deceitful behavior across multiple platforms. Some risk signals include an individual’s history of confirmed fraud occurrences, non-granted disputes, open and close accounts, and ratio of good to bad transactions. The FPFC will expand knowledge of how individuals behave which can help financial institutions, merchants, investment platforms, and others assess risk upon new account opening, the time of transaction and when a dispute is raised.