Member Access Processing Adopts Advanced Identity Score to Help Credit Unions Mitigate Fraud
Editor’s Note: Hear from Member Accessing Processing’s Chief Revenue Officer, Bob Long, in the upcoming CU Learning TRAXX session, Operational Innovation: Hands Free! The Future of Payments is Contactless. He’ll join a panel of thought leaders to uncover the latest in card transaction data and weigh in on digital, payment, and retail strategies.
As the COVID-19 pandemic continues, identity fraud is on the rise. In a 2020 report, Javelin Strategy and Research found that identity fraud contributed to $16.9 billion in credit union and bank losses.
In June, Visa announced a new tool called Advanced Identity Score (AIS) to help combat new account and synthetic fraud. Synthetic fraud is a form of identity theft in which real and fake data are put together to create an identity — for example, a real Social Security number with a fake name, or a real name with the social security number of a deceased person. Synthetic fraud was at the root of the 2017 Equifax hack and has become popular among hackers due to the increasing amounts of personal data available in the public sphere.
As the nation’s only aggregator of the Visa Debit Processing Service platform for credit unions, Strategic Link partner, Member Access Processing (MAP), is able to leverage its partnership with Visa to provide credit unions with the reliable and secure solution they need to mitigate fraud.
AIS can help reduce and even eliminate identity-related fraud by examining identity risks at the point of credit or loan application. Using artificial intelligence and predictive machine learning, AIS creates a two-digit identity fraud score in near real-time that complies with the Fair Credit Reporting Act.
AIS looks at several data points to determine fraud risk, including the frequency of applications within a period of time, suspicious activity, and bankruptcy data across consumer identity elements. The data points are then analyzed against additional data from government and law enforcement agencies, self-reported data from consumers, and third-party data providers.
“With more than 14.7 billion data records breached since 2013, many of which include sensitive data such as name, tax ID number, and address, new account fraud has been a consistently growing challenge for financial institutions,” Julie Conroy, research director at the Boston-based Aite Group, said in a press release. “Financial institutions are looking for solutions that can help effectively detect synthetic and stolen identities at the time of application. The consortium data and sophisticated analytics that power Visa’s Advanced Identity Score promise to make it a valuable addition to financial institutions’ control framework.”
To learn more about MAP, visit its virtual booth at the Strategic Link Trade Show, open now and accessible 24/7, or contact the Strategic Link team. Tomorrow, Aug. 26, credit unions can chat directly with MAP staff from 11 a.m. to 1 p.m. PDT.