100-member CUG helps contain frauds
Experian Fraud Prevention Bureau today has 100 members, who share fraud related information. Vaishali Kasture, country head, Experian India, provides details:
N. Mohan: Experian’s Fraud Prevention Bureau now has 100 members. Can you outline the specific benefits the platform has brought to the members?
Vaishali Kasture: Experian Hunter, our fraud prevention tool, detects application fraud by matching credit request information against multiple data sources, including the shared fraud data. It comprises several rules that work towards identifying inconsistencies in credit applications. This service is built on a robust framework that ensures detection of fallacies.
The industry has the benefit of screening against a database of 80 million plus unique applications when using Experian Hunter services. With its use, we have seen a 55% yoy growth in FY17-18, with the number of transactions reaching 40 million, bringing an overall savings of `21,000 crore for the BFSI sector in India.
For instance, in the secured loans space, Hunter could detect a potential fraud with PAN and date of birth match.
PAN and DOB of principal borrower was matched against rejected application of another borrower from a different CUG member. Also, details with the other CUG borrower revealed different telephone and employer information. When this case was referenced to the field investigation team, the following remarks were made: “Employer: Incorrect Employment Details” & “Contact: Fake Contact details”. The application was rejected leading to a saving of `70,00,000 for the bank.
Can you give an indicative list of members of the CUG?
Currently, the platform is supporting around 20 life insurance companies and 80 banks, HFCs and NBFCs to manage application frauds thus comprising over 60% of the retail lending market in India.
What are the unique features of the Hunter platform, which powers the bureau? 0
Hunter is key in helping the Indian BFSI industry stay ahead of fraudsters and in fraud prevention through early detection of the same. One of its unique features is the robust framework that is has been built around. Through the CUG, we have created an ecosystem that enables members of the group to share data of their respective applicants inclusive of the ones who have shown signs of being potential fraudsters. Hunter runs this data on its platform and alerts the respective members in case of any inconsistencies observed, thereby creating a resilient environment to fight fraud.
Can you explain the salient aspects of the technology behind Hunter?
The Hunter platform shares data across all the CUG members making it the largest fraud repository in the country. The platform uses its unique technology to highlight 3 types of cases to identify potential fraud:
Erstwhile applications which have been declined for fraudulent reasons Inconsistent applications in terms of data being submitted
Velocity applications detecting multiple applications not just from the same person but also with same addresses, contact numbers, bank account details etc
All these helps in identifying not just lone operators but also syndicated rings that try and defraud the banking system.
How effective is the information sharing between the members of the CUG?
The CUG enables members of the group to share data of their respective applicants inclusive of the ones who have shown signs of being potential fraudsters. The more the members in the CUG, we have more data for screening the applications, hence, this makes the platform more efficient. In addition, various features like reasons for decline of an application, help the CUG members to consider further details of applications while screening them and thus take informed decisions.
Also, we have ‘Hunter Fraud Score’ that measures the probability of fraud in a credit application across the banking and insurance industries. The score helps retail finance providers and insurance companies to significantly increase their efficiency in fraud detection. Businesses can identify applications that should be screened for potential fraud and prioritize those that have a high probability of being fraudulent. This enables them to potentially lower their fraud losses and focus on approving applications from genuine customers.
Are there similar platforms facilitated by Experian in other countries? Can you give details?
The Hunter platform is a global product for Experian and is being used across multiple countries. The big markets for this product apart from India are United Kingdom, Brazil, Columbia etc.
Vaishali Kasture points out that the CUG has created an ecosystem that enables sharing data and then detecting possible frauds well in time