Socure has introduced its first-party fraud solution, Sigma First-Party Fraud, powered by the concurrent launch of its First-Party Fraud Consortium (FPFC). The consortium enables companies to tackle the multi-industry issue of first-party fraud by pooling data and insights, allowing its partners to detect and prevent fraud before it takes hold.

The consortium's founding members include many digital banks and fintechs, including SoFi, Green Dot, Varo, Ingo, Dave and Public, amongst others, totalling over 50 million active accounts across the consortium at launch. Additionally, the consortium is actively working with many players to provide insights into account activity – both positive and elevated risk – to quickly add more than 200 million additional active accounts to the network. First-party fraud challenges First-party fraud is committed by individuals who use their own identity to perpetrate dishonest acts for financial gain.

The use of their own identities— with accurate credentials —makes first-party fraud much harder to prevent than identity fraud associated with stolen, manipulated or fabricated synthetic identities. According to Socure's research, these fraudsters are succeeding to the tune of billions of dollars, with annual first-party fraud losses in the US alone adding up to more than USD 100 billion. Detecting and preventing first-party fraud requires rapid analysis of alternative data signals that aren't tracked in traditional credit reports to discern patterns of fraudulent behaviour over time and across multiple platforms.

In fraud prevention, large data networks are essential, and the industry must work together to solve this growing problem. On average, 45% of FPFC members have overlapping consumer bases, making collaborative data sharing more valuable to identify fraudulent behavioural patterns that may have otherwise been mistaken as legitimate. Socure's first-party fraud solution analyses data from the FPFC in addition to risk indicators derived from the company's Socure Risk Insights Network—which sees feedback data from more than 1,800 customers across the digital economy.

Socure also draws on more than 400 databases of cross-industry ID data, totalling millions of transactions across geographies and companies of all sizes to provide identity matching across the Socure FPFC to stop fraud. By expanding industry-wide knowledge of how consumers behave across different financial ecosystems, the Socure FPFC intends to help financial institutions, merchants, investment platforms, gaming and sports betting, telcos, and payment processors accurately identify first-party fraud risk. In tandem with Socure's Sigma First-Party Fraud solution, customers can convert more trustworthy customers, reduce charge-offs and chargeback losses, eliminate manual processes and friction, speed onboarding, reduce customer abandonment, and enhance identity verification accuracy and trust throughout customer ecosystems.

About Socure Socure is a platform for digital identity verification and trust. Its predictive analytics platform applies artificial intelligence and machine learning techniques with trusted online/offline data intelligence from physical government-issued documents as well as email, phone, address, IP, device, velocity, date of birth, SSN, and the broader internet to verify identities in real time. The company has more than 1,800 customers across the financial services, government, gaming, healthcare, telecom, and ecommerce industries, including banks, card issuers, MSBs, and more.

Socure customers have become investors in the company, including Citi Ventures, Wells Fargo Strategic Capital, Capital One Ventures, MVB Bank, and Synchrony. Additional investors include Accel, T. Rowe Price, Bain Capital Ventures, Tiger Global, Commerce Ventures, Scale Venture Partners, Sorenson, Flint Capital, Two Sigma Ventures, and others.

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