Insurance companies, like banks and retailers, are forced to deal with a wide spectrum of fraud, which costs the industry and its customers billions of dollars each year. According to the Insurance Fraud Bureau, “Undetected general insurance claims fraud total £1.9billion a year adding on average £44 to the annual costs individual policyholders face, on average, each year.”
Savvy criminals who perpetrate insurance fraud have learned to mask their true identities when setting up policies online, regularly changing account information to circumvent conventional methods of fraud detection. Now, more than ever, insurance companies need to be wary of these schemes from the onset and deploy effective solutions to analyze information beyond that supplied by users.
By initiating the application process with a device reputation check provided by iovation Inc., insurance companies can stop fraud before it happens and avoid further checks and fees when a device is known to be associated with identity theft and other frauds.
The insurance industry has an opportunity to work in tandem with merchants, banks, and others to share data that helps pinpoint the devices responsible for fraudulent activity. Shared device reputation intelligence makes this possible for the first time.
The insurance industry can utilize the established reputations of over 800 million devices in iovation’s device reputation knowledge base. While a computer applying for insurance on a site may be new for the first time, it is rarely new to iovation’s global client base. By assessing risk based on the device in real-time, an insurance company can better determine whether a particular device is trustworthy before a transaction has been approved or an account has been opened.