New AI-Powered Risk Score Predicts First-Party Fraud Abuse at Scale
INCLINE VILLAGE, Nev., March 6, 2025 /PRNewswire/ — Socure, the leading AI-driven platform for digital identity verification, fraud prevention, and sanctions screening, today announced the launch of its Identity Manipulation Risk Score, the first-ever cross-industry predictive risk score designed to stop repeat first-party fraud abusers from exploiting the digital economy at scale.
This AI-powered capability is embedded within Sigma First-Party Fraud, Socure’s innovative solution that leverages the largest cross-industry first-party fraud consortium to perform real-time analysis of dispute histories, payment denials, and account closures across millions of identities and billions of transactions. Socure’s first-party fraud consortium spans major financial institutions, fintechs, payment platforms, sports betting companies and merchants providing an unmatched network of fraud intelligence from diverse sectors. Sigma First-Party Fraud provides organizations with critical risk signals, real-time risk monitoring and actionable intelligence to detect bad-faith actors at account opening and throughout the entire customer lifecycle.
A Breakthrough in First-Party Fraud Prevention
First-party fraud, or the use of one’s own identity to open an account and commit a dishonest act for personal or financial gain, is costing businesses over $100 billion annually. Unlike third-party fraud, which involves stolen or synthetic identities, first-party fraudsters exploit their real, verified credentials, making it far more difficult to detect. What’s worse, in a recent survey Socure found that nearly half (49%) of those who committed first-party fraud in 2024 said they did so because they got away with it in 2023, proving that repeat abuse is a growing problem without a deterrent.
With the introduction of the Identity Manipulation Risk Score, organizations can now leverage Socure’s Sigma First-Party Fraud solution to quantify the likelihood of identity manipulation at critical decision points, including account opening, high-risk transactions, and dispute resolution. Identity manipulation behaviors include consumers applying for services with different emails or phone numbers to exploit multiple organizations using their own true identity. By leveraging real-time signals from 210M+ contributed identities, 325M+ accounts, and over 20 billion transactions, Sigma First-Party Fraud enables fraud teams to detect early indicators of abuse, predict bad-faith behavior, and prevent repeat fraud before it escalates.
The rise of first-party fraud presents an urgent challenge for financial institutions, fintechs, and digital platforms. With traditional fraud models struggling to detect this unique form of fraud, solutions like Sigma First-Party Fraud offer a new approach—leveraging AI and cross-industry data to accurately predict and prevent fraudulent activity before it impacts the bottom line,” said David Mattei, Strategic Advisor at Datos Insights. “The ability to detect identity manipulation and track unscrupulous consumers across institutions is a massive step forward in protecting the financial ecosystem at scale.”
How It Works: AI-Powered Risk Intelligence
Sigma First-Party Fraud‘s Identity Manipulation Risk Score is built on Socure’s proprietary AI models and the largest first-party fraud intelligence consortium, offering:
- AI-Powered Predictive Risk Scoring – The first-ever cross-industry risk score that quantifies identity manipulation risk at account opening, transactions, and disputes.
- Consortium-Driven Insights – Built from real-time data across financial institutions, fintechs, BNPL, gaming, and eCommerce providing unparalleled first-party fraud intelligence.
- Real-Time Risk Monitoring – Delivers instant alerts when an identity’s risk profile changes, enabling proactive intervention before fraud occurs.
- Adaptive Machine Learning Models – Continuously refines fraud detection, leveraging insights from billions of transactions to enhance accuracy and reduce false positives.
“Identity manipulation is at the core of predicting first-party fraud, as most fraud prevention solutions fail to detect it,” said Ori Snir, Head of Product Management, Fraud and Identity Solutions at Socure. “With the launch of the Identity Manipulation Risk Score, we’re giving organizations the ability to proactively assess risk before financial losses occur, using AI-powered predictive analytics that stop bad actors in their tracks.”
A New Standard for First-Party Fraud Detection
With traditional fraud tools struggling to keep pace with evolving fraud tactics, Socure’s Sigma First-Party Fraud solution provides organizations with a critical layer of protection against first-party fraud. By accurately identifying fraud risks early, minimizing operational costs, and reducing false positives, businesses can build a more secure financial ecosystem.
The Identity Manipulation Risk Score is now available as part of Sigma First-Party Fraud through Socure’s RiskOS™ platform and API integrations. For more information, visit the company’s website.
About Socure
Socure is the leading provider of AI-powered digital identity verification and fraud prevention solutions, trusted by the largest enterprises and government agencies to build trust and mitigate risk, anytime through the customer lifecycle. Extensively leveraging AI and machine learning, Socure’s industry-leading platform achieves the highest accuracy, automation and capture rates in the world. With the acquisition of Effectiv, Socure expands its capabilities to offer end-to-end identity fraud and payment risk management, integrating advanced transaction monitoring, credit underwriting and know-your-business (KYB) solutions into its platform.
Serving more than 2,800 customers across financial services, government, gaming, marketplaces, healthcare, telecom, and e-commerce, Socure’s customer base includes 18 of the top 20 banks, the largest HR payroll providers, the largest sportsbook operators, 28 state agencies, four federal agencies, and more than 500 fintechs. Leading organizations including Capital One, Citi, Chime, SoFi, Green Dot, Robinhood, Dave, Gusto, Poshmark, Uber, DraftKings, PrizePicks, the State of California and many more trust Socure to deliver certainty in identity across onboarding, authentication, payments, account changes, and regulatory compliance. Learn more at www.socure.com.
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SOURCE Socure
