CASE STUDY
Credit Bank Uses Kount to Detect Fake Identities and Prevent Loss
Credit Bank* is an American bank specializing in auto loans, personal banking, and savings accounts. The financial institution is also one of the nation's leading issuers of consumer credit cards.
THE PROBLEM
No way to detect fake identities
For years, Credit Bank derived the majority of its revenue by issuing credit cards to consumers. But over the years, the company’s most valuable source of income gradually became its greatest liability. Credit Bank was experiencing an increase in unrecoverable charges. Cardholders would max out their card balances and never repay what was due — including interest.
Credit Bank suspected these troublesome accounts were opened with synthetic identities. Fraudsters were stealing bits of information from different people and putting everything together into one fake — yet seemingly credible — identity.
The issuer could no longer afford to write-off the fraudulent activity, so Credit Bank went looking for technology that could detect and block these imposters.
THE SOLUTION
A proven-effective approach
Credit Bank discovered Kount’s synthetic identity prevention technology and was intrigued by its capabilities.
Because of Kount’s partnership with Equifax, the technology incorporates more than a century’s worth of identity data into the analysis process. With unparalleled data and a clear understanding of what it means, Credit Bank recognized that Kount’s technology would be able to expose the type of fraudsters they were dealing with.
THE RESULTS
Unparalleled success blocking costly accounts
Upon launch, Kount’s technology completed a one-time scrub of the issuer’s existing card portfolio. The analysis revealed more than 62,000 accounts tied to synthetic identities causing more than $8 million in annual losses.
Credit Bank also implemented ongoing monitoring to screen identity information provided during account origination. And the results are exceeding the issuer’s expectations. Kount’s technology is on pace to detect and block more than 100,000 synthetic identities annually, stopping $25 million in financial losses each year.
Overall, Kount has given Credit Bank peace of mind. No longer does the lender have to worry about extending credit to fake users. Instead, Credit Bank can focus on growth opportunities and taking care of legitimate customers.
GET STARTED TODAY
Want to prevent synthetic identities from stealing your revenue?
Contact Kount today. We can help you create a trust and safety strategy that stops fraudsters from using fake identities and jeopardizing your business's revenue.
* Our customer asked that their name be anonymous.