Top 5 US Card Issuer Partners with BioCatch to Protect Senior Citizens from Fraud and Saves $3.5M
A top 5 US card issuer sought a solution to better protect senior citizens from fraud and identity theft after finding that 40% of confirmed fraudulent credit card applications had a declared age of 60+. Further, by analyzing the percentage of applications that were automatically approved against year of birth, the issuer saw an opportunity to improve the onboarding process, as the experience for genuine senior customers was statically worse when compared to other age groups. In applications where the declared age was over 60, the issuer found that the average automatic approval rate was only 55% and increased to an average of 80% in applications where the declared age was less than 60.
For this credit issuer, applications that are not automatically approved are subject to a manual review and follow up process. While this process was used to vet all potentially high-risk applicants, it led to the highest number of cancellations among elder age groups. with an average cancellation rate of 18% when the declared age was over 60 and only 2% among applications where the declared age was below 60. While a percentage of cancellations were initiated by the user, a larger majority were done by the issuer because they were unable to reach the applicant after multiple attempts.