CREDIT CARD APPLICATION FRAUD USE CASE

Credit card application fraud is a type of identity theft that involves opening a credit card account in another person's name. By opening an account using stolen information, a fraudster an accumulate potentially limitless charges using another person's identity.

In 2016 alone, more than $1.6 billion was lost by companies due to credit card application fraud.

Transunion, 2017

CREDIT CARD APPLICATION FRAUD SCENARIOS

Post-fraud Attrition

Fraud involving new card accounts are most prone to attrition.

Automated Attacks

Automated attacks have become a viable method for completing application fraud when the issuer relies strictly on the verification of personally identifiable information (PII).

Fraudsters can develop scripts for different institutions, based on the template of their applications, that automatically fill out various fields with the appropriate type of PII. This, in turn, allows fraudsters to increase the frequency with which they can submit applications.

RESOLUTION

Prevent credit card application fraud in real-time by verifying if and when an applicant's PII was compromised.

COMPROMISED identifies stolen PII and delivers scored risk intelligence to help flag high, medium and low-level vulnerabilities for new account creation or account takeover. Risk scoring can be performed by single data descriptors or by weighting all of an individual’s exposed credentials.

Our workflows let you set up rules whenever specified events occur. These rules enable you to route users to different outcomes based on the risk score. When you send COMPROMISED an API call, the output of your workflow is immediately returned to help your risk engine make a time sensitive decision.

Risk scores are requested at the key events where fraud or abuse occurs (e.g. ask for score when sending a create order event, open new account, login to existing account, etc.).

How Credit Card Application Fraud risk could be scored when considering compromised credentials:

COMPROMISED TOOLS TO PREVENT CREDIT CARD

API Call

Dashboard

Risk List

Monitoring

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