FCC Paragon Leverages LexisNexis® FraudPoint™ UK to Enhance Fraud Detection with 95% match rates
FCC Paragon share why they selected FraudPoint™ UK for fraud detection
FCC Paragon recently appointed LexisNexis® Risk Solutions to implement its cutting-edge fraud detection solution LexisNexis® FraudPoint™ UK. In this interview, FCC Paragon explains why it selected FraudPoint™ UK over other solutions, and how it addresses their specific challenges.
FCC Paragon also reflects on previous methods of managing and addressing fraud, what it sees as the key benefits and features of FraudPoint UK, and the market conditions that led the team to require such a solution.
Read this interview in full to learn why expertise, scale and innovation were such key factors in FCC Paragon’s decision to select LexisNexis Risk Solutions as their preferred technology partner.
At FCC Paragon, we've been operating independently for nearly 30 years, a rarity in the lettings industry where most of our competitors are corporately owned and driven by insurance products. Instead, we're focused on delivering top-notch referencing services, recognising that quality is our key product. We're constantly innovating, always on the lookout for new ways to serve our clients better and putting customer care at the forefront of everything we do. When you reach out to us, you won't encounter automated responses - it's always a person on the other end.
Our commitment to customer service is evident in our adherence to service level agreements (SLAs), ensuring prompt responses to all inquiries. Our growth over the years has been fuelled by our reputation for exceptional client care. In a nutshell, we specialise in tenant referencing, recruitment referencing, and driving checks, all geared towards separating the good actors from the risky.
We are constantly on the lookout for innovative solutions to combat fraud within our industry. When FraudPoint UK was presented to us, we eagerly seized the opportunity. Anything extra we can implement to enhance our fraud detection efforts is something we're excited about. Fraud is evolving, and we need to stay ahead of the game.
FraudPoint UK addresses specific challenges we face, such as identifying fraudulent references, which can easily slip through when managing numerous files daily. With its comprehensive approach and when combined with financial stability checks, credit searches, and AML screening, FraudPoint UK greatly improves our ability to verify applicants’ addresses and credit footprint.
During our proof of concept (POC), we were impressed by the outstanding results, boasting a match rate of over 95%, surpassing our previous methods. Given the current economic climate and the surge in fraudulent attempts during tenant referencing, it's crucial for us to manage risk effectively.
LexisNexis® FraudPoint™ UK
LexisNexis® FraudPoint™ UK uses predictive analytics powered by LexisNexis® Risk Solutions extensive data resources, advanced statistical linking and supercomputing technology, to help catch fraud at the point of customer application.
Before partnering with LexisNexis Risk Solutions, we managed fraud detection and prevention using a combination of our own technologies and data from a previous supplier. While our existing setup was robust, we recognised the need for a new partner who could further enhance our capabilities. We hadn't heard of LexisNexis Risk Solutions before, but a recommendation prompted us to explore further.
Upon visiting the website and speaking with our relationship manager, we were instantly impressed. The breadth of data and tools offered by LexisNexis Risk seemed to seamlessly complement our existing systems, far exceeding our expectations. Additionally, our previous provider for data services was acquired, leading us to seek alternatives. LexisNexis Risk came highly recommended in this regard.
We first came across FraudPoint UK during our annual customer review, when our relationship manager visited our site. He introduced us to the solution and discussed its potential benefits in more detail. We were immediately interested in exploring it further, recognising its value in enhancing our fraud detection capabilities.
One aspect that appealed to us was the flexibility of FraudPoint UK. We appreciated that we could gradually activate its features as needed, allowing for a measured response that considers the risks involved, both to landlords and our own operations. This approach ensures that we can effectively manage applications while minimising potential risks.
LexisNexis® FraudPoint™ UK
LexisNexis® FraudPoint™ UK uses predictive analytics powered by LexisNexis® Risk Solutions extensive data resources, advanced statistical linking and supercomputing technology, to help catch fraud at the point of customer application.
When evaluating FraudPoint UK, several features stood out to us as particularly advantageous. Firstly, the match rate was a key factor that caught our attention. Ensuring accurate identification and verification of applicants is crucial in our industry, and FraudPoint UK 's high match rate provided confidence in its ability to meet our needs effectively.
While pricing is always a consideration, our primary focus was on the solution's ability to address fraud risks comprehensively. We prioritise underwriting our own warranties for rentals, which means any fraudulent activity directly impacts our bottom line. Therefore, having a solution like FraudPoint UK that enhances our referencing process and minimises the risk of defaulting tenants is paramount.
We were also impressed by the depth of information provided by FraudPoint UK, which surpassed what we had experienced with previous suppliers. The ability to consolidate data and integrate it seamlessly with our existing systems, including our tenant database, significantly enhances our ability to make informed decisions during the referencing process.
Moreover, the customised model offered by FraudPoint UK, based on a thorough analysis of our historical data, ensures a tailored approach that maximises effectiveness. This custom model approach has contributed to our high match rate and provides us with the confidence that we are leveraging the solution to its full potential.
Ultimately, our goal is to safeguard the interests of landlords and letting agents by mitigating risks associated with fraudulent activities. Even a small percentage of defaults can have significant financial implications for us, which is why having a robust referencing process, supported by solutions like FraudPoint UK, is crucial for our operations.
Within our industry, the evolving nature of fraud presents a significant challenge that we must continually address. It's imperative that we stay vigilant in protecting the interests of landlords. The landscape of fraud is dynamic, with new tactics emerging regularly, making it crucial for us to keep pace with these developments.
Our decision to consider solutions like FraudPoint UK stems primarily from the need to better safeguard landlords against fraudulent activities. Fraudulent behaviours, such as providing false email addresses or undeclared addresses, pose serious risks to our operations. Previously, identifying and verifying individuals involved a labour-intensive process of manual investigation, as we had to meticulously scrutinise each provided address to ensure accuracy.
Moreover, the competitive landscape within the industry has intensified, with a scarcity of available properties prompting tenants to resort to extreme measures. This heightened competition underscores the critical need for robust fraud prevention measures like FraudPoint UK. As the industry undergoes significant transformation, with tenant referencing practices evolving, integrating solutions like this becomes a logical progression for us.
With FraudPoint UK 's introduction, we now have the capability to efficiently identify individuals from a single search, streamlining our verification process significantly. Moreover, the prevalence of undeclared addresses has raised concerns about potential subletting, highlighting the importance of solutions like those offered by LexisNexis Risk Solutions to provide comprehensive insights into applicants' financial activities.
LexisNexis® IDU®
LexisNexis® IDU® offers a flexible approach to identity management, helping you confirm identities online, comply with anti-money laundering requirements and protect your business from the threat of fraud.
In terms of volumes, our business experiences fluctuations throughout the year, with activity dipping around Christmas and ramping up notably by Easter. On average, during peak seasons, we anticipate handling around 3,000 applications per week. However, it's important to note that these figures fluctuate due to the seasonal nature of our industry.
We're confident that FraudPoint UK will seamlessly accommodate our needs, regardless of these peaks and troughs. With its automated API integration, the solution can handle the capacity of both busy periods and slower times without issue. Our workflow follows a waterfall process, where data from FraudPoint UK is fed into LexisNexis® IDU®, and is subsequently checked against our own solutions.
Every single application is meticulously checked as part of our process. While FraudPoint UK provides valuable insights, our integration efforts ensure that its results are incorporated into our existing services, enabling us to make informed decisions while upholding our standards of thoroughness and accuracy.
How has your experience been working with LexisNexis Risk Solutions so far?
Our experience working with LexisNexis Risk Solutions has been nothing short of exceptional. From our very first meeting with Chris, we established a brilliant relationship that made us feel like more than just clients – we felt like partners. Communication has been a standout aspect of our collaboration. Unlike previous experiences with other suppliers where we had to chase for meetings and struggled to get responses, LexisNexis Risk Solutions has been incredibly responsive and quick to assist whenever we've had questions or concerns.
The openness of communication channels has been particularly appreciated, as has the level of responsiveness from the LexisNexis Risk Solutions team. Weekly meetings to discuss technical setups and results have been invaluable, and having direct contacts we can easily reach out to via email or phone has streamlined our operations significantly.
What's truly remarkable is that LexisNexis Risk Solutions has delivered on everything they promised. We haven't felt oversold on anything – the solutions they've provided have met and exceeded our expectations. Additionally, the speed at which LexisNexis Risk Solutions has been able to respond to our needs and move projects forward has been impressive, reinforcing our confidence in them as a long-term partner.
