Socure releases predictive risk score solution, lays out data on fraud protection

Socure has unveiled a new anti-fraud product alongside fresh data on its achievements in fraud prevention.

The U.S.-based digital identity verification company has launched the Identity Manipulation Risk Score, a predictive risk score aimed at preventing repeat first-party fraudsters.

First-party fraud is the use of one’s own identity to open an account and commit a dishonest act for personal or financial gain, for example exploiting return and refund policies on online shopping sites. The practice is common: The company claims that one in eight Americans committed first-party fraud over the 2024 holiday shopping season.

The Identity Manipulation Risk Score allows companies to estimate the likelihood of identity manipulation during account opening, high-risk transactions and dispute resolution. Identity manipulation behaviors include consumers applying for services with different emails or phone numbers to exploit organizations.

The capability is embedded within Sigma First-Party Fraud, a real-time analysis product that examines dispute histories, payment denials and account closures across millions of identities to obtain fraud intelligence. The data is obtained from a first-party fraud consortium which includes major financial institutions, fintechs, payment platforms, sports betting companies and merchants.

Socure’s data shows improvements in fraud detection

Socure also claims it has been getting positive results with its other fraud prevention products, including those aimed at synthetic identities, “manipulated” and “fabricated” identities which often use real personal information.

The company’s Sigma Synthetic Fraud product, for instance, records a fraud capture rate of 80 percent at the 3 percent risk depth, and 59 percent at the 1 percent risk depth. Socure uncovers synthetic data fraud by analyzing third-party and historical data to detect anomalies and behavioral patterns pointing to synthetic identity fraud.

Another Socure product, the Sigma Identity Fraud is designed to eliminate identity fraud during the new application and onboarding stage. It captures 85 percent of fraud in the highest three percent of risky applications and 89 percent in the highest five percent.

The company achieves these results by identifying a consumer who has consistently utilized similar personal information, IP geo-location, mobile devices, operating systems and browser languages over multiple years and across varying institutions to create a unique and persistent device ID. The product includes an anomaly detection feature designed to protect from generative AI threats.

Last but not least, the company’s Sigma Identity v4 fraud protection product provides up to 85 percent third-party identity fraud capture at the top of the funnel in the riskiest 3 percent of applications, the firm says.

The product is designed to go beyond device fingerprinting techniques that do not work with privacy-conscious devices and browsers. Instead, it relies on analyzing data such as email, IP and location history.

Article Topics

biometrics  |  digital identity  |  fraud prevention  |  identity verification  |  Socure  |  synthetic identity fraud