Level Up: 3 New Data Capabilities for Your Account Fraud Prevention Toolkit

Level Up: 3 New Data Capabilities for Your Account Fraud Prevention Toolkit

Expanded Predict New Account Risk Capabilities from Early Warning® Harness Shared Data to Help You Fight Fraud


New account fraud persists as a major challenge for financial institutions and customers. A 2024 Javelin report revealed that it reached $5.3 billion in losses in 2023, compared to $3.9 billion in 20221. Are your account fraud prevention efforts keeping up?

Early Warning can help you rise to the challenge of this growing threat with our enhanced Predict New Account Risk capability bundle, enriched with Shared Fraud, Account Abuse, and Hot File attributes capabilities.  

 

 

What's Changed?   

The rapid migration to online account openings introduces added complexities for financial institutions. While maintaining the integrity of digital processes against fraud is paramount, ensuring a seamless customer experience is equally crucial. Our revamped Predict New Account Risk is tailored to meet these twin challenges.    

Harnessing contributed data from more than 2,500 financial institutions, Predict New Account Risk unveils a panoramic view of an applicant's deposit account history. With the added attributes of Shared Fraud, Account Abuse, and Hot Files, you're provided a richer understanding, allowing precise DDA new account opening and credit, and lending decisions based on an applicant's historical patterns and matches to your internal hot file.  

Shared Fraud: Shared Fraud attributes provide insight into shared fraud events associated with the applicant, including number of events, most recent event, and information on events that occurred at the inquiring bank vs the consortium.  

Account Abuse: Account Abuse Attributes provide insight into account abuse events associated with the applicant including number of events, most recent event and information on differentiation of events contributed by the inquiring bank vs the consortium.  

Hot File: Using Hot File information contributed by your financial institution allows us to provide a Hot File Attribute which identifies high-risk applicants you may not want to do business with.  

 Why Use Predict New Account Risk?  

  1. Holistic Insights: Predict New Account Risk offers a comprehensive solution for new DDA account openings by pairing it with Verify Identity.    
  2. Growth with Confidence: Enriched deposit account intelligence enables you to make nuanced risk assessments, ensuring you can confidently grow your customer base without compromising fraud protection.  
  3. Maximized Protection: The integrated scores combined with new attributes forecast the likelihood of first-party fraud or account mismanagement within nine months of account opening.    
  4.  Strategic Decisions: Including Shared Fraud and Hot File attributes, Predict New Account Risk seamlessly aligns with your institution's strategic objectives and risk tolerance.  
  5. Financial Inclusivity: The transparent risk scores and summarized attributes empower your institution to serve a broader consumer segment with trust and confidence.  

HOW IT WORKS    

 At New Account Opening:

  1. A consumer submits a new account application to your institution.  
  2. Your FI submits an inquiry to Early Warning, which processes the data using its unique models and extensive datasets to deduce the applicant's risk quotient.  
  3.  The enriched Predict New Account Risk data is relayed to your institution.  
  4.  Leveraging this data, your institution fine-tunes account opening decisions, tailoring privileges according to set risk thresholds.  

At Credit & Lending Application:

  1. A consumer applies for credit using your institution's lending application.  
  2. Your FI submits an inquiry to Early Warning, Early Warning aggregates a holistic perspective of the consumer's deposit account history, focusing on shared fraud and hot file data.  
  3. The solution offers summarized attributes of Predict New Account Risk.  
  4. Your institution collates these insights into its credit approval strategy, ensuring privileges align with the identified risk.  

  At Early Warning, our commitment to empowering financial institutions remains unwavering. By incorporating the bolstered capabilities of Predict New Account Risk, financial entities can fortify their account fraud prevention strategies and stride forward with conviction, security, and growth in focus.

Download the White Paper

 

1. 2024 Identity Fraud Study: Resolving the Shattered Identity Crisis April 2024