Experian, the global information services company, launched the ‘Hunter Fraud Score’, a new scoring mechanism that measures the probability of fraud in a credit application across banking and insurance industries.
According to the credit information company, the new score will help retail finance providers and insurance companies in India significantly increase their efficiency in fraud detection.
Businesses will be able to identify applications that should be screened for potential fraud, and prioritise those that have a high probability of being fraudulent.
This will enable them to potentially lower their fraud losses and focus on approving applications from genuine customers.
Hunter prevents application fraud by matching credit application data against multiple data sources, including the shared fraud data. It comprises several rules that work towards identifying inconsistencies in credit applications.
The suspicious applications are moved into the investigation tool for further analysis and action.
Experian launched the Hunter Fraud Management Services for the life insurance sector in India in March this year and have six life insurance companies going live this month.
The credit information company is running the Experian Fraud Bureau — a closed user group (CUG) of industry members, who share fraud data and in return access advanced fraud detection services from Experian. This group includes 47 banks and 15 life insurance companies.