Nick Mothershaw - Experian The Growing Tide of Risk and use of Data by Criminals

Fraud as a % of Applications FIRST PARTY

Fraud as a % of Applications FIRST PARTY – MORTGAGES

Fraud as a % of Applications THIRD PARTY ZOOM

Fraud as a % of Applications THIRD PARTY - MORTGAGES

First / Third - Product Analysis Black bars show 2014 split positon;

Fraud Type Analysis ALL PRODUCTS

Fraud Type Analysis MORTGAGES

Who are the Fraudsters? – Mosiac Analysis First Party Fraud - ALL PRODUCTS Municipal Challenge Urban Cohesion Rental Hubs

Who are the Fraudsters? – Mosiac Analysis First Party Fraud - MORTGAGES Urban Cohesion Rental Hubs City Prosperity

Age Analysis

Gender Analysis

Where does fraud occur? First Party Fraud - Mortgages

Our new FraudStats website Join the conversation on Twitter @ID_and_Fraud #FraudStats

Regulatory Challenge Payment Services Directive 2 Anti Money Laundering Directive 4 Payment Accounts Directive eIDAS Regulation EU Data Protection Regulation (GDPR) EBA Strong Customer Authentication

The problem with ID … Too many different meanings Identity (account, mindset, me) Identify Identifier Identification Identity tree starts with birth certificate Easy to get Easy to forge Easy to assume someone else’s Not linked to death records Identity checking is expensive Existence? Attributes? Authentication? Identity checking (really) isn’t yes or no Confidence Measure of effectiveness

The Challenge - Achieving the right balance Fraud Risk Mitigation Customer convenience and choice Customer Preferences Data Footprint Market Approach ü ü Vs ü ü ü For consumers with data footprint can do more online, and more instantly For less data footprint need to revert to documents and face to face checks: when this is the case make this easy; give options More and more people prefer online. Some people want a Face to Face experience. Might not be near a Branch / Outlet. Some people will use a financial advisor Branch / Outlet: support for face to face checks. Expert driven Online: offer consumer options, maximise online conversion rate. Online, Phone or Face-2-Face

Who is this? Can we trust them? RECOGNISED IDENTITY TRUSTED

Fraudsters will hide behind a digital facade. RECOGNISED Digital Anonymity IDENTITY TRUSTED

Recognised Identity Revealing “Digital Anonymity” IDENTITY RECOGNISED TRUSTED Revealing “Digital Anonymity”

Online Approach More happy customers! RECOGNISED Online Approach More happy customers! IDENTITY TRUSTED ID Validation Letter to home Send in Documents Bring Documents into Dealership Abandon Proceed Ways to access a service - Today Ways to access a service - Tomorrow Knowledge Based Questions Card / Bank Account Verification Phone call to Home/Mobile Automatic Document Verification Manual Document Verification Penny Payment Selfie Verification Letter to Home ID Validation Abandon Proceed More customers get immediate access to products Less customers abandon applications due to inconvenient processes Source of Funds validation build into the process

New ways to identify Individuals Knowledge Based Questions Penny Payment

New ways to identify Individuals Automatic Document Verification Phone call to Home/Mobile

Joining it all up Experian CrossCore

Authentication – Today and tomorrow Weak Forgotten Phished / Breached UID and Password More Secure Inconvenient Simple 2nd Factor Secure Reliable Easy to use Biometrics SMS One Time Code Finger Print Browser / App PIN Voice Landline One Time Code Face Hardware / Software Token IRIS Card Reader Heartbeat

Identity as a Service                   TODAY IDaaS What is IDaaS Experian provides all services around identity authentication and ongoing credential management. Allows organisations to concentrate on their core business Issues Reusable Identities: the consumer only has one set of credentials for use with many organisations, removing the need for 10s of user ids and passwords Org Org Collect Personal Data   Validate Identity   Verify Identity   Validate Documents   Obtain offline proofs   Manage Broker proof production   Issue & Manage Credentials   Ongoing Credential Use   Consumer Audit Trail  

Evolution of Identity Identity Providers (IdP) Identity Exchange ID VERIFIED Attribute Exchange CONSUMER DATA Information Services Providers (InSP)

GOV.UK Verify MY IDENTITY RECOGNISED TRUSTED LIVE LIVE MARCH The UK government has set up a “market” of Identity Providers When an UK citizen wishes to access government services online they will be asked to select an Identity Provider to verify their identity. Once the citizen have been verified the Identity Provider gives them a logon and other credentials to allow them to instant access other government services. LIVE Consumers choose an Identity provider based on brand and the range of ID verification options offered LIVE MARCH

So where does all this take us?

RECOGNISED Support throughout the Digital Journey Protection against First Party Fraud, ID Theft and Cybercrime MY IDENTITY TRUSTED Identity as a Service Fraud Detection FraudNet Detect Hunter CrossCore