Idaho-based Kount has released a new product aimed at preventing insurance fraud as the industry increasingly turns to digital, and even mobile, setups.
In a Tuesday (Aug. 11) announcement, Kount said its new artificial intelligence (AI)-driven Insurance Digital Risk and Fraud Prevention Solution will fight against “increased levels of digital fraud specific to insurance providers.” The product will also, the company said, protect against identity assumption, bot quotes, and “ghost brokering,” which is when fraudsters use fake documents.
“Fraud prevention solutions need to address the most common types of insurance fraud, like bots that submit illegitimate bulk quotes to open fake policies by using consumer information” that is purchased or stolen, Jay Sarzen, senior analyst, Aite Group, said in the announcement. He added that “an AI-driven solution that establishes trust or risk in real time can detect and stop this automated behavior.”
Along with the security benefits, Kount’s product will also ensure “marketing campaign efficiency and conversion,” the company added. Kount’s products help “insurance companies identify visitors, manage leads, and determine who is shopping for a quote.”
Kount added that this means its business customers “are able to optimize marketing and sales efforts, personalize customer experiences, and reduce the time spent vetting prospects.”
“One of the largest national insurance companies we work with has seen a 10-times return on investment in working with Kount for fraud prevention,” said Vik Dhawan, vice president of product at Kount. “Kount’s fraud protection platform increases profitability and reduces fraudulent claims with digital identity verification and advanced artificial intelligence.”
Due to the pandemic, many companies have rolled out new online portals that are convenient to their customers. A downside to this: Fraudsters see consumer-oriented innovations as fresh ways to pursue their illegitimate line of work.
“Many of the same things that create tremendously valuable brand experiences are also tremendously valuable for fraudsters,” said Kount Chief Customer Experience Officer Rich Stuppy in a PYMNTS interview.
Stuppy said one example is advanced loyalty programs that allow customers to convert loyalty points to gift cards or transfer them to family or friends. These “are dream setups for a fraudster,” he added.