The Featurespace Application Fraud solution enables you to detect fraudulent applications early and accurately using Adaptive Behavioral Analytics while balancing optimal customer experience and sophisticated third-party data usage.
Fraudsters are evolving their tactics to imitate genuine customer behavior and evade detection. Featurespace’s Adaptive Behavioral Analytics enables financial services providers to use real-time machine learning to detect fraud.
This enables it to distinguish genuine applicants from fraudsters who are executing first party or synthetic fraud attacks and bring data sources into a single platform view.
Because Featurespace’s Platform models customer behavior rather than looking for known bad behavior, it can detect even newer types of fraud attacks.
First-party fraud
When the person applying for a product misleads the lender in some way to get the approval, such as exaggerated income or source of deposit.
False identity/Synthetic ID
When an entirely falsified “individual” created over several months applies for a loan.
Impersonation or third-party fraud
When the details of a genuine individual are used by the fraudster to apply for an account or credit.
Other party fraud
When someone else in the lending chain, e.g., a solicitor in a mortgage deal steals the funds.
The platform enables significant analytical modeling capability to monitor application data from multiple angles, empowering risk teams to analyze multiple events simultaneously, at each step of the application process.
- Understand behavioral data across channels
From how a customer transacts, to what is being seen from previous applications. - Reduce on-boarding costs
Identify and block fraudulent applications and more efficiently accept genuine applications. - Accurately spot impersonation fraud
Detect more fraudulent profiles, even when a criminal has a customer’s full file of identity details. - Use device fingerprint to spot repeat applications
Identify multiple applications from the same device. - Catch fraudulent applications before transactional fraud occurs
To reduce the cost of managing fraud downstream from application. - Zero degradation
Our fraud models use self-learning technology.
The Featurespace Multi-tenancy capability gives issuers and acquirers control over the experience available to your customers.
"The Featurespace Platform spots fraud better and quicker. This system is clever enough to learn the behavior of individuals and compare it with similar data, which results in far fewer false positives. It makes us much more effective in what we do."
A Credit Reference Agency
Improving fraud detection rate by 85%
As the largest digital only bank in the US and one of the 15 largest banks in the country, this bank was open to new fraud types such as synthetic ID application fraud.
Challenge
The bank had a set of rules that screened applications for fraud. As the business grew, the bank recognized that its existing process was stretching operational resources and was not flexible enough to provide effective protection.
The bank’s main challenge was handling 87 data feeds that were going into its Deposit Risk Engine and the various screens that investigators had to work to review a case.
Curious about The Featurespace Platform and what it can do for your business? Let us walk you through our capabilities, strategies and solutions.