#None #Socure #Fraud Prevention #Dispute Abuse Score

Socure's Innovative Approach to Fraud Prevention

In a strategic move to enhance digital identity verification and fraud prevention, Socure has introduced its Dispute Abuse Score, marking a significant milestone in the battle against first-party fraud. This groundbreaking tool is designed to predict and identify individuals who are likely to exploit dispute processes, including Regulation E (Reg E) policies that protect consumers during electronic fund transactions. As businesses across various sectors grapple with growing fraudulent activities, Socure's latest offering aims to deliver unmatched visibility into suspicious activities, thereby safeguarding economic interests while promoting trust in financial systems.

Understanding the Dispute Abuse Score

The Dispute Abuse Score is a unique risk model that leverages data analytics to determine the propensity for abuse in dispute transactions. Johnny Ayers, CEO and Founder of Socure, emphasized that detecting dispute and Reg E abuse has historically posed significant challenges due to perpetrators often concealing their identity or slightly manipulating it to exploit consumer protections. With the introduction of this score, organizations can proactively detect repeat offenders who leverage these processes across multiple platforms, tackling a form of first-party fraud that, according to estimates, costs U.S. businesses billions of dollars annually.

Socure's approach represents a paradigm shift in the fraud detection landscape. Unlike traditional fraud prevention tools that struggle to keep pace with evolving tactics employed by fraudsters, the Dispute Abuse Score utilizes proprietary technology, including Socure's First-Party Fraud Consortium and Identity Graph. The score analyzes vast data sets comprising dispute histories, account closures, payment denials, geolocation, and device intelligence from over 350 million identities, spanning nearly 30 billion transactions. Such comprehensive cross-industry insights allow organizations to uncover repeat abusers who would generally remain undetected if institutions operated in isolation.

Practical Applications and Benefits

The Data-driven insights provided by the Dispute Abuse Score equip organizations with the intelligence necessary to refine their fraud prevention strategies. Some practical applications include:

• - Auto-approval of Low-Risk Disputes: This feature helps reduce the backlog of investigations, enabling companies to focus their resources on higher-risk cases efficiently.
• - Rejection of High-Risk Transactions: Businesses gain the ability to prevent financial losses by halting transactions flagged as high-risk based on predictive assessments.
• - Stricter Verification for Suspicious Activity: Organizations can deter potential fraudsters by requiring additional documentation and verification measures for high-risk users, such as one-time passcodes or bank statements.
• - Adjustable Fund Availability: By analyzing users' risk profiles, companies can modify fund availability or hold times specifically for high-risk individuals.
• - Continuous Optimization: By feeding outcomes of investigations and dispute risk data into internal models, firms can continuously refine their understanding of fraud patterns and enhance their operational response.

According to Mandy Goettelman, Chief of Staff at Green Dot Corporation, the Dispute Abuse Score is a crucial innovation that the industry needs to address the challenges posed by repeat abusers. As a founding member of Socure's First-Party Fraud Consortium, Green Dot recognizes the importance of collaboration in effectively combating sophisticated fraud schemes. The tool is set to bolster customer protection while ensuring legitimate disputes are handled efficiently, ultimately fostering a safer and more reliable financial ecosystem.

Addressing a Critical Threat

Dispute abuse has become an increasingly pressing issue across industries, particularly with findings from Socure's proprietary research highlighting its prevalence:

• - 40% of consumers experienced at least one disputed transaction in the last two years.
• - 15% of individuals who disputed a transaction did so at multiple institutions within a year.
• - Consumers disputing at two or more organizations are five times more likely to be identified as 'abusers'.
• - Generational insights reveal that Gen Z and Millennials constitute a significant proportion of disputers, with rising engagement in online shopping leading to increased instances of payment disputes.

In light of these insights, Jim Mortensen, Strategic Advisor at Datos Insights' Fraud and AML Practice, asserted the significance of Socure's real-time intelligence capabilities. The Dispute Abuse Score represents a valuable asset for financial institutions aiming to spot risky behaviors and strategically manage trust and fraud prevention throughout the customer lifecycle.

Conclusion

Socure's Dispute Abuse Score embodies the company's commitment to pushing the boundaries of fraud detection innovation. By delivering essential intelligence on first-party fraud, Socure not only provides solutions that protect businesses but also reinforces the integrity of the financial ecosystem as a whole. As it stands, the Dispute Abuse Score is set to play a pivotal role in transforming how organizations navigate the complex landscape of fraud prevention, ensuring that worthy consumers are empowered while fraudulent activity is kept at bay.

For more information about Socure and its innovative solutions, visit www.socure.com.