Equifax Launches Solution Set to Counter Fraud

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Equifax unveils a new solution set for unemployment insurance prevention that helps identify and prevent potential fraudulent claims for unemployment insurance agencies.

The UI Eligibility suite of services addresses concerns on misdirected payments caused by fraudulent acts, causing the delay in payments for workers. It provides a data-based solution and authentication tools to verify self-employed claims during the pandemic.

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Because of the existence of the Pandemic Unemployment Assistance Program (PUA), many individuals take advantage of and claim benefits for other people. The IU Eligibility suite of services will authenticate the information of receipts without upgrading the state agency’s technology in place.

Equifax Solution Set to Counter Fraud

“The dramatic increase in need and the new opportunity for self-employed individuals to file for unemployment insurance under the CARES Act has contributed to a significant increase in unemployment benefits fraud,” said Equifax vice president Juan Cole.

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The company consulted with government officials to align solutions and data to create data sets that will eventually identify fraudulent applications. This allows Equifax to process the surge in unemployment claims, ‘getting benefits quickly into the hands of those making valid claims.’

The new toolset has verification solutions to mitigate synthetic fraud risk and streamline the identity process. It benefits the decision on who can claim the benefits and identify fraudulent acts subject to state punishment.

Closer Validation

In line with identifying the potential fraud or overpayment markers, Equifax’s IU Eligibility suite of services also features closer validation for diverse data sets. This will focus on what matters the most, processing claims, fraud risk value, and detection tools.

Equifax offers a comprehensive suite of identity, authentication, and fraud prevention services to government agencies, telecommunications companies, and financial institutions. The real-time decision benefits these organizations, validating claimant information.

The multi-dimensional data sources allow multiple verifications within milliseconds. For the PUA program, Equifax can validate the claims without the tax return data, which normally takes up to 18 months. The solution is streamlined, fast, and effective, especially for validating information.

Since early April, the rate of unemployment increased massively, with more people taking advantage of the system. According to the North Dakota Attorney’s General Office, 146 out of 168 unemployment insurance claims were a result of fraud.

“And more are coming. We have perhaps 20-plus police reports that have been sent to the Consumer Protection Division awaiting the actual contact or submission of an ID theft affidavit,” said Parrell Grossman.

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