Nearly 89% of survey respondents indicated their financial services organizations became increasingly concerned about fraud and identity management during the COVID-19 pandemic, according to Forrester’s New Technology: The Projected Total Economic Impact Of TransUnion TruValidate Identity Exchange report.1
Findings from the TransUnion 2022 Global Digital Fraud Trends Report revealed those concerns are valid. Businesses in Canada experienced:
But combating online application fraud comes with its own risks to friction-right customer experiences. Balance is the key, and tipping that balance in your favor is the focus of this blog post.
“We want to improve our fraud management to where we can identify fraud trends and help remedy fraudulent accounts while at the same time reducing friction for customers who don’t need multiple looks.” – Manager of fraud strategy, financial services.1
While fraud is rising, the Forrester Report revealed fraud management solutions aren’t always met with a high level of confidence. Across the customer journey, many organizations are using a patchwork of tools — which makes spotting fraudulent applications early more difficult. And if you already have inefficient, multitiered strategies, gaining assurance over uncertainties can be a challenge.
But perhaps their biggest concern revolved around the ability of their solutions to appropriately accept or reject applicants. When applications are regularly flagged for manual reviews, it bogs down employees, delays the approval process (sometimes by weeks), and causes long wait times that frustrate applicants — possibly driving them to competitors.
Additionally, a high ratio of false positives meant qualified customers were being rejected when they shouldn’t have been.
Those shortcomings sent organizations on a mission to find a new, easy-to-use solution that could better predict and identify potentially fraudulent applicants while simultaneously providing the right balance between active and passive controls in the fraud management process.
Ultimately, organizations adopted TransUnion TruValidate™ Identity Exchange — an identity risk management solution offering a comprehensive tool to help improve fraud management processes and better identify which applications truly needed to be pulled for manual reviews.
As a result, the Forrester Report1 found after investing in the solution, interviewed customers projected these benefits:
For more insights on how TransUnion TruValidate Identity Exchange can help organizations identify fraudulent applications, avoid false positives and improve efficiencies, take a look at this infographic.
1 The Projected Total Economic Impact of TransUnion TruValidate Identity Exchange, Forrester Research, Inc., March 2022. A commissioned study conducted by Forrester Consulting on behalf of TransUnion.