Socure Launches Groundbreaking Identity Manipulation Risk Score to Combat First-Party Fraud in the Digital Economy

Socure's New Approach to First-Party Fraud Prevention

In a significant development for the digital economy, Socure, a leader in AI-driven identity verification, has unveiled the first-ever Identity Manipulation Risk Score. This pioneering tool is tailored to combat first-party fraud—a scheme where individuals exploit their own verified identities to commit fraudulent activities. With this new score, Socure aims to shield businesses from the dire consequences of this type of fraud, which is estimated to inflict $100 billion annually.

The Growing Challenge of First-Party Fraud

First-party fraud presents unique challenges for financial institutions and businesses, primarily because it involves the misuse of one's legitimate identity. Unlike third-party fraud, where stolen identities are common, first-party fraudsters often apply for services using their own authentic details, making detection exceedingly difficult. Recent research from Socure highlights a worrisome trend: 49% of individuals who admitted to committing first-party fraud in 2024 indicated they were emboldened by their previous success in 2023. This alarming statistic underscores the urgent need for effective preventive measures.

Introducing the Identity Manipulation Risk Score

The Identity Manipulation Risk Score is embedded within Socure's Sigma First-Party Fraud suite, a cutting-edge solution that incorporates real-time analytics drawn from an extensive cross-industry consortium. This consortium consists of financial institutions, fintech companies, payment platforms, and merchants, providing a robust network for fraud intelligence—essential for detecting bad actors across various sectors.

The risk score evaluates the probability of identity manipulation at critical junctures, such as during account openings, high-risk transactions, or disputes. By analyzing complexities like multiple applications using various emails or phone numbers, the system identifies attempts to exploit multiple organizations using a single verified identity.

Advanced Technology at Work

Socure's Identity Manipulation Risk Score leverages sophisticated AI and machine learning technologies. The system analyzes a vast array of data, encompassing over 210 million contributed identities and more than 20 billion transactions. This comprehensive dataset empowers organizations to spot early signs of potential fraud, predict adverse behavior, and take preemptive action against repeat fraudsters.

David Mattei, Strategic Advisor at Datos Insights, emphasizes the importance of this innovation: “The ability to detect identity manipulation and track unscrupulous consumers across institutions is a massive step forward in protecting the financial ecosystem on a large scale.”

Adaptive and Real-Time Risk Intelligence

Equipped with real-time risk monitoring capabilities, this system enables businesses to receive immediate alerts when an identity's risk profile changes. Such responsiveness is vital for minimizing potential losses before they occur. Furthermore, the use of adaptive machine learning ensures the continuous refinement of fraud detection methods, which helps reduce false positives and enhances the overall accuracy of the system.

A New Standard in Fraud Detection

As businesses face evolving tactics employed by fraudsters, traditional prevention methods have proven ineffective in many cases. Socure's innovative approach, through the Sigma First-Party Fraud solution, marks a turning point in fraud detection and prevention. By accurately identifying risks at the earliest stages, organizations can not only save operational costs but can also foster a more secure financial environment.

This Identity Manipulation Risk Score is now accessible via Socure's RiskOS platform and through API integrations, making it readily available to a wide range of organizations.

About Socure

As a prominent provider of AI-powered digital identity verification solutions, Socure serves over 2,800 clients across various sectors, including financial services, e-commerce, and government agencies. The company's commitment to utilizing advanced machine learning technologies enables it to continuously enhance accuracy and automate fraud detection processes, offering unparalleled protection against identity fraud.

With innovative offerings such as the Identity Manipulation Risk Score and the Sigma First-Party Fraud suite, Socure stands at the forefront of safeguarding the digital economy, ensuring trust and security across customer interactions.