Sydney, Australia, 27 November 2013 – Experian, the global information services company, today launched its Australian Fraud Bureau to provide credit providers with a robust approach to combating fraud at the point of application.
Experian's Fraud Bureau facilitates data sharing among credit providers to identify data inconsistencies, patterns and trends at the point of application – before fraud occurs. Rather than relying on traditional methods of fraud prevention, such as black lists of known fraud, Experian is fundamentally changing how fraud and potential fraud is identified and safeguarded against. It uses sophisticated analytics to deliver a match and fraud propensity score, as well as details of links to existing identified frauds and fraud syndicates that may already be evident or recorded, thereby enabling the early identification and avoidance of credit application fraud activities.
Experian is a global leader in fraud prevention and offers fraud services in over 20 countries around the world, including United Kingdom, United States and India. It brings best in class analytics, data and consultancy capabilities to the Australian market, delivering unmatched global experience combined with deep local expertise in fraud detection.
Globally, Experian has demonstrated that sharing credit application data delivers a 30 per cent uplift in potential fraud detection rates compared with first party data methods.
To validate the effectiveness of the bureau locally, Experian conducted a trial with eight leading Australian organisations across the retail, financial services and telecommunications sector. The trial, which ran over a three month period, processed and assessed 7.3 million credit applications on a retrospective basis.
These initial local trial results showed an average of 14 per cent uplift in fraud prediction and also identified 3.1 per cent of the total credit that had been granted over the period but which was, in all probability, fraudulently obtained and could have been prevented by the Australian Fraud Bureau in the application.
The Australian Fraud Bureau combines risk indicators, demographic data from unique local data sources, risk indicators and sophisticated cross database matching algorithms to deliver the most sophisticated fraud detection system available in Australia. It verifies credit applications in batch (offline) or real time to provide instant results, avoid false positives and credit application abandonments, as well as enhancing the consumer experience.
The Australian Fraud Bureau works in tandem with existing fraud detection systems and software to provide a reliable, complementary service, without the need to overhaul legacy systems or invest in new application fraud software.
The Australian Fraud Bureau enables credit providers to increase their efficiencies and minimise client friction by identifying those applicants with strong levels of identity correlation indicating a low likelihood of fraud thus supporting regulatory identity verification requirements. It also improves operational efficiencies, particularly in terms of staffing and the cost of application processing and, importantly, the costs of managing credit portfolios as fraudulent credit applications inevitably progress to unpaid debts and present operational costs in collections processes.
“Through the introduction of the Australian Fraud Bureau, we are making a structural shift to how fraud is identified and managed in Australia by enabling the early identification and avoidance of probable fraud before the credit is granted,” explains Kim Jenkins, Managing Director, Experian Australia and New Zealand.
“We know Australians lost $1.4 billion in 2010-2011 due to personal fraud*, which includes credit card, fraud, identify theft and scams. Credit application fraud is one component of this that all lenders can take steps to address. To date, fraudsters have exploited weaknesses in credit lending systems as a result of organisations not sharing data about suspected fraud cases. Advances in technology and increasing rates of fraud are creating unprecedented risks and costs imposts to all credit providers. The result is that fraud in Australia has continued to grow year on year.
“The Australian Fraud Bureau will be the foundation for a number of additional anti-fraud products and services that Experian will be introducing to the Australian market over the coming months and years. Following Experian’s recent acquisition of The 41st Parameter, we now have an even stronger suite of services in the anti-fraud arena which we believe will bring significant benefits to our clients in their fight against fraud and financial crimes.”
Experian's fraud ROI calculator demonstrates the uplift in fraud detection that each organisation will attain by using the Fraud Bureau. It provides lenders with security and a clear ROI and identified business case benefits before committing spend.
The opening of the Australian Fraud Bureau follows the launch of Experian’s Consumer Credit Bureau in Australia in February 2013.
Note to editors:
* ABS 2013. Available from: http://www.abs.gov.au/Ausstats/abs@.nsf/0/0BFD18E71ADFB95FCA2574740015D60C?OpenDocument
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Experian is the leading global information services company, providing data and analytical tools to clients around the world. The Group helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.
Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2013 was US$4.7 billion. Experian employs approximately 17,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.
For more information, visit http://www.experianplc.com.