Human beings have always enjoyed an expansive set of abilities at their disposal, and yet they haven’t possessed anything more valuable than their ability to improve at a consistent pace. We say this because the stated reality has already fetched the world some huge milestones, with technology appearing as a rather unique member of the group. The reason why technology’s credentials are so anomalous is purposed around its skill-set, which was unprecedented enough to realize all the possibilities for us that we couldn’t have imagined otherwise. Nevertheless, a closer look should be able to reveal how the whole runner was also very much inspired by the way we applied those skills across a real world environment. The latter component was, in fact, what gave the creation a spectrum-wide presence and made it the ultimate centerpiece of every horizon. Now, having such a powerful tool run the show did expand our experience in many different directions, but even after reaching so far ahead, this prodigious concept called technology will somehow keep on delivering the right goods. The same has grown to become a lot more evident in recent times, and assuming one new GRC-themed development pans out just like we envision, it will only propel that trend towards greater heights over the near future and beyond.
Socure, the leading provider of Artificial Intelligence for digital identity verification, fraud prevention, and sanctions screening, has officially announced a brand-new solution called Sigma Synthetic Fraud v4, which the company claims as the industry’s most accurate synthetic fraud solution. According to certain reports, the stated product leverages advanced machine learning and diverse, third-party and network feedback data to uncover patterns linked to insidious synthetic identity fraud. In case you didn’t know, synthetic identity fraud is a financial crime where a real person’s information is stolen and combined with other falsified personal information to create a fictitious identity, further used for fraudulent purposes. The use cases include applying for loans, credit, government benefits, move illicit funds, and more. By far the fastest-growing form of financial crime in US, several reports say that synthetics make up 1-3% of open accounts across the country’s financial institutions. Making the problem only more severe is the fact that synthetic fraud can literally cost 10 times more than any third-party identity fraud. But how does Socure’s latest brainchild solve such a conundrum? Well, the answer begins from its innovative email risk enhancements. The enhancements include a mechanism to better detect email tumbling, a technique where people create “alias” email addresses by adding punctuation marks like periods between letters. Enhancing their detection capabilities here should empower the user to block threat actors in time. Next up, we have the prospect of unparalleled consortium data, which essentially comes from Socure Risk Insights Network of over 1,900 world’s largest organizations that span diverse industries and government agencies. Already well-equipped to identify multiple identity elements across the entire consortium, the feature also uses machine learning algorithms to constantly update the data to deliver the highest accuracy possible. After receiving 150 million new rows of outcomes in the past year, Socure’s database now has under its belt more than two billion known good and bad identities.
We referred to the ML presence in Socure’s latest brainchild; it becomes more prominent when the company’s fraud investigators provide clean, corrected, and properly classified fraud labels for unlabeled or mislabeled raw data. You see, the now labeled information, based on actual synthetic incidents and patterns, becomes a medium to train and make the system better. This intelligence, in turn, can go a long way in identifying synthetic identities at onboarding, and account changes, while simultaneously uncovering “sleepers” hiding within portfolios. Moving on to the system’s real-time fraud detection technology, the idea here is to use Socure’s velocity engine for the purpose of tracking how often someone’s personal information is used in applications, along with how often that information is linked to other data across the Socure Risk Insights Network. Now, when you are able to study so much information, and that too on such a large scale, it becomes significantly easier to predict fraud attacks before they can happen.
“Synthetic fraud cannot be accurately detected with rules-based systems or third-party fraud solutions,” said Yigit Yildirim, SVP of Fraud and Risk Products at Socure. “Socure’s AI engine analyzes anomalies to uncover multiplex synthetic-specific features that distinguish legitimate thin-file consumers from synthetic fraudsters with high accuracy in real-time — and without causing friction for good users.”
Rounding of the highlights is Sigma’s embedded link analysis functionality, which searches tens of thousands of correlations between an entity’s name, address, email address, phone number, SSN, DOB, IP address, and device intelligence to track fictitious identities across the Socure Risk Insights Network. Basically, every time a bad actor creates accounts using different names or SSNs but uses the same email address, phone number, or physical address, a deep link analysis enters the fray to spot that connection in a quick and efficient manner.
The move from Socure provides an intriguing follow-up to one particular report from the Deloitte Center for Financial Crimes, a report where it was clearly stated that the institution expected synthetic identity fraud to generate at least $23 billion in losses by 2030.
Founded in 2012, Socure has today reached a point where it serves around 1,900 customers across the financial services, government, gaming, healthcare, telecom, and e-commerce industries. This includes four of the top five banks, 13 of the top 15 card issuers, the top three MSBs, the top payroll provider, the top credit bureau, the top online gaming operator, the top Buy Now, Pay Later (BNPL) provider, and over 400 of the largest fintechs. As for concrete names, Socure is currently a trusted partner for the likes of Chime, SoFi, Robinhood, Gusto, Public, Poshmark, Stash, DraftKings, the State of California, and Florida’s Homeowner Assistance Fund, and more.