Canadian Businesses Can Drive Stronger Growth and Reduce Identity Fraud Risks with TruValidate Identity Exchange from TransUnion®

TransUnion® (NYSE: TRU) has expanded TruValidate Identity Exchange across industries in Canada to help financial institutions, credit card issuers, fintechs, telecommunications providers and other companies grow their business while combatting fraud with a new patent-pending, multi-layered approach to risk management and identity verification. Combining advanced analytics and machine learning, Identity Exchange is a dynamic solution that proactively assesses identity fraud risk – for example, during an application process when consumers are applying for loans, credit cards or phone contracts – to enable businesses to more confidently approve authentic customers. Early adopters of the solution have benefitted from increased acquisition while preventing fraud.

Identity Exchange can help businesses expand their customer base. New-to-credit (NTC) consumers – such as young Canadians who are early in their credit journeys, or those who are new to Canada – often face challenges obtaining credit products, despite being credit hungry and intentional about managing new credit products carefully, according to a recent global study by TransUnion. In Canada, 983,000 consumers opened their first credit product and became NTC during 2021, with 81% of these opening a credit card as their first product. When assessing the creditworthiness of a consumer, confirming their identity is a key first step, and in a digital journey, credit history is often used. When there is little to no credit history, businesses may decline the application or be forced to use more costly manual processes that create friction for authentic customers to confirm identity. A difficult digital experience can impact consumers from getting the credit they need.

With Identity Exchange, businesses can proactively assess multiple aspects of a customer’s identity, analyzing against millions of data points, such as credit bureau data, as well as the unique behaviours of each individual – activity that is uncharacteristic for an individual (for example, applying for 10 credit cards in 48 hours) – to determine in real-time the likelihood that the customer is actually a fraudster.

Each business faces unique challenges when it comes to identity fraud, and as more consumers engage digitally, detecting fraudulent transactions and verifying identities quickly and accurately is crucial. TransUnion’s analysis revealed that from 2019 to 2022, the number of digital transactions rose by 103% in Canada, and fraud attempts on digital transactions rose by 189%. Fraudsters are becoming more sophisticated and the traditional “checklist” approach of only checking individual identity elements is inadequate because each piece of data may be technically correct on its own (a legitimate address, phone number, etc.). Instead, organizations now need to embrace an integrated view of identity.

“Identity fraud in its various forms is one of the most challenging issues faced by businesses today – but it is a preventable crime. Identity Exchange proactively, intelligently and continuously applies data, creating friction on suspicious transactions and exposing fraudulent accounts to help mitigate risk before fraud losses can occur,” said Patrick Boudreau, head of identity management and fraud solutions at TransUnion Canada. “By having a clearer picture of who is behind the transaction, businesses can drive fraudsters away, drive better experiences, and drive stronger growth.”