Holiday shopping abound and lasting pandemic effects have changed the landscape for how people conduct services online. However, with greater digital presence comes greater digital exposure, leaving businesses and users vulnerable to fraud. One company poised to help tip those scales is fintech unicorn Socure.
On Monday, the digital identity verification and fraud solution provider unveiled its newest product at Money 20/20: Sigma Identity Fraud – a solution it claims utilizes over 17,000 features that analyze every dimension of a consumer’s identity including name, email, phone, address, IP, device, velocity, network intelligence, and real-time consortium feedback data in a single product.
According to Socure’s product highlights, the solution can increase auto-approval rates by up to 60% and captures fraud in the riskiest 3% by 90%. The fintech also claims it can reduce manual reviews by over 80% through substantially more accurate decisioning.
The startup’s predictive analytics platform applies AI and machine-learning techniques with a combination of online and offline data intelligence – think email, phone, address, IP, device and the broader internet. With these techniques applied, Socure can verify that people are, in fact, who they say they are when applying for various accounts.
Socure’s latest product actually “binds” device data to the individual using the device to deliver better identity decisions. The application also analyzes real-time dynamic linkages across seven billion rows of transaction data to inform the model. Its “clustering linkages” also allow it to gain improved identification of fraud and fraud rings.
According to Javelin Strategy & Research, identity fraud losses in the U.S. in 2020 reached a total of $56 billion. This figure represents a combined total of $13 billion for traditional identity fraud and $43 billion for identity fraud scams.
Currently, Socure’s system is basing itself on the 750+ clients the fintech services and will grow in accuracy as its base grows with it.
“We have created the perfect balance between fraud detection, eliminating customer friction and reducing false positives all in one solution with our latest Sigma Identity release,” said Johnny Ayers, founder and CEO of Socure.
In March, the company’s machine learning security tactics earned it the elusive unicorn status after a $100 million dollar Series D led by Accel Ventures. At the time of its last funding, the company said it plans to use its new capital to enhance its product offerings as it continues to develop patents. Marquee customers include Chime, Varo Money, Public, Stash and DraftKings.
The model is proving to be a success as Socure dropped its Q3 earnings in tandem with its latest product – and things are looking good. Socure achieved 500% year-over-year bookings growth in the third quarter of 2021 achieving the fifth consecutive quarter of record year-over-year revenue dollar growth.
“Enterprises of all sizes rely on Socure not just for fraud protection, but for growing their business. The accuracy of our Sigma fraud classification model has made legacy solutions centered around single identity elements, manual reviews or knowledge-based authentication a thing of the past,” Ayers said.