Socure presents new dispute abuse anti-fraud tool

Socure has released a new anti-fraud product that analyzes the likelihood of individuals abusing dispute processes. The risk assessment tool is designed to identify consumers who falsely dispute legitimate transactions for goods and services in order to get their money back by analyzing data from over 350 million identities and nearly 30 billion transactions.

The digital identity verification firm says that dispute abuse, also known as Reg-E policy abuse, is becoming a serious problem, costing U.S. businesses tens of billions of dollars annually. Approximately 40 percent of all consumers had at least one disputed transaction within the last 24 months, while 15 percent of consumers who disputed a transaction have done so at two or more institutions within 12 months.

“Dispute and Reg-E abuse have historically been two of the hardest forms of first-party fraud to detect, with bad actors hiding behind clean or slightly manipulated identities to exploit consumer protections,” says Johnny Ayers, Socure CEO and founder.

To prevent the issue, its Dispute Abuse Score analyzes dispute histories, account closures, payment denials, geolocation and device information. This allows businesses to identify repeat abusers, Socure says in a release.

In addition, the tool helps companies by auto-approving low-risk disputes and rejecting high-risk transactions to prevent losses. Bad actors are deterred by requiring additional verification, while the platform also adjusts fund availability or hold times for high-risk users.

Socure has been calling attention to the risks of ID fraud in different sectors, including government programs.

Earlier this month, the New York-headquartered company also launched a tool designed to detect fraud during employee recruiting by analyzing phone, email, device, geolocation, behavior and education signals. Flagged applicants are automatically directed to stepped-up document and biometric checks.

Article Topics

digital identity  |  first-party fraud  |  fraud prevention  |  Socure