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LexisNexis® Risk Solutions Enables NewDay to Increase Fraudulent Application Detection to 70%
Technology Category
- Analytics & Modeling - Predictive Analytics
- Application Infrastructure & Middleware - Data Exchange & Integration
- Cybersecurity & Privacy - Identity & Authentication Management
Applicable Industries
- Finance & Insurance
Applicable Functions
- Business Operation
- Quality Assurance
Use Cases
- Fraud Detection
Services
- Software Design & Engineering Services
- System Integration
The Challenge
As the largest non-bank card issuer, NewDay faced significant challenges from fraudsters exploiting stolen identity credentials to open credit cards online. At one point, up to 70% of NewDay applications were fraudulent, making it overwhelmingly difficult to identify good customers with established credit history from fraudsters attempting to impersonate them. Relying solely on static identity verification methods such as external bureau data proved to be ineffective, as millions of credentials have been compromised in data breaches and sold on the dark web. NewDay needed a more holistic approach to differentiate legitimate customers from fraudsters, enabling them to verify a user’s true identity in near real time.
About The Customer
NewDay is a major financial services company, providing millions of customers with products and services in the Near Prime and Co-Brand credit market sectors. Its proprietary risk management models and segmented approach enable them to tailor products to meet the specific needs of their customers. Some of NewDay’s partners in the Co-Brand sector, which provide loyalty rewards and special offers, include established retailers such as Amazon, Debenhams, House of Fraser, Arcadia Group, and Laura Ashley. NewDay also operates three brands in the Near Prime sector – Aqua, Marbles, and Opus. NewDay’s innovative credit offerings include an instant spend service in which customers can purchase credit cards online that are then instantly activated for immediate use.
The Solution
Leveraging LexisNexis® ThreatMetrix® digital identity intelligence, NewDay can reliably detect fraudsters attempting to apply for new credit cards using stolen identity credentials that compromise good customers’ established credit. NewDay can also differentiate good customers from fraudsters in near real time, reducing friction for customers utilizing their instant spend service. The LexisNexis® Digital Identity Network® collects and processes global shared intelligence from millions of daily consumer interactions including logins, payments, and new account applications. Using this information, the ThreatMetrix solution creates a unique digital identity for each user by analyzing the myriad connections between devices, locations, and anonymized personal information. Behavior that deviates from this trusted digital identity can be reliably identified in near real time, alerting NewDay to potential fraud. Suspicious behavior can be detected and flagged for review, step-up authentication or rejection before a transaction is processed, creating a frictionless experience for trusted users.
Operational Impact
Quantitative Benefit
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