JuicyScore, an anti-fraud solutions provider has reaffirmed its commitment to tackling the rising online fraud that is emanating from access to digital loans illegally.
According to Regional Business Development Director at JuicyScore, Mr Chris Akolo, online fraudsters are now using highly sophisticated software to access digital loans without the fintech detecting them.
“We have recently noticed a significant increase in online fraud in the regions of our operation. For example, the number of randomizers has increased from 0,1% to 3,5%. Randomizers in one of the fastest-growing online fraud types and there is no way to detect it apart from using alternative data-based solutions,” said Mr Akolo.
Mr Akolo noted that fraudsters use special software, also known as randomizers.
“The purpose of such software is to thwart existing digital device fingerprints and pass off the same device from which the fraudster applies for a loan online as a new one every time. Thus, a fraudster can take out a loan from the same device an unlimited number of times, changing only the borrower’s data, while the financial organization’s security system will treat each application as unique,” he said.
To cope with the identification of randomizers, Mr Akolo notes that a set of technologies and algorithms for detecting various kinds of device anomalies will help to identify new high-risk devices and filter them out in the early stages of the loan pipeline.
“Digitization allows us to conquer new heights, gain access to new customers and reduce operating costs. However, such a situation also creates rather a rich environment for fraudsters. Many financial industries have to face such problems and suffer from losses connected with fraud every year. We help not only to minimize fraud, reducing it to a trickle, but to help achieve better financial results – approve more loan applications and reduce risk applying our high-risk markers to decision making system.”
As a result, JuicyScore provides the access to the tools that help in preventing fraud, reducing risks, and increasing the availability of online financial products via device authentication technologies and user behavior analysis.
“JuicyScore is an easy solution to detect payment fraud. In JuicyScore you can reduce risks in your online business easily and effectively. We do not utilize sensitive personal data or direct consumer identifiers. We analyze more than 50.000 data points and by using machine learning we provide an anti-fraud score along with a data vector of about 200 predictors important for anti-fraud and credit scoring via our API.”
The officer added, “JuicyScore is compliant with GDPR, current, and perspective regulating rules and security policies of browsers and operational systems. On top of the data vector provided by the API, we help clients to build customized scores and provide consulting on score modeling. If you implement our solution, you can expect a 10X ROI and a Gini increase of 5-20 points.”
Meanwhile, Mr Akolo confirmed that Credit Score is here to stay and it’s the only way for financial institutions to price risk.
“Credit score is the best prediction of a customer’s credit behavior, such as how likely a customer is going to pay a loan back on time, based on information from his/her credit reports. With JuicyScore parameters, you can create a basic range score, which may be used as an analog of credit risk score, which adds more value to your decision engine. With JuicyScore parameters, we can complement your credit process by providing alternative data that will improve your decision-scoring engine,” said Mr Akolo.
For basic range scores, which may be used as an analog of credit risk score, Mr Akolo said they can do that for thin files or new credit customers for whom they lack information and therefore increase their acceptance rate.