Experimental design bureau: National Hunter

History

2017: Version release

On April 24, 2017 the Joint Credit Bureau announced start of the version of scoring for counteraction to credit fraud within the National Hunter system.

The upgraded model is created by means of a method of logistic regression and the fixed calibration and is based on the complex variables allowing banks to select scenarios of behavior of potential clients:

• previous attempts of fraud of the client,
• unreliable information about the employer,
• coincidence of mobile phone number at several borrowers,
• a large number of requests for the credits for the last 2 weeks, etc.

Result of creation of complex variables - a set of the ratings ranging the entering population of clients on a risk degree of credit fraud.

This approach based on use of different combinations of rules of a system and determination of specific behavior model of swindlers increased efficiency of model twice in comparison with the previous version, the company stated.

Scoring of experimental design bureau can be integrated into global scoring model of banks that will allow to reduce losses from fraud, to increase approval level for positive population of clients with low risk. The model helps to optimize carrying out primary customer segmentation on risk level and to apply manual consideration only on some groups of requests, setting for the others automatic failure or approval.

This model of scoring is applicable for universal credit institutions, banks working in a segment of car loans and a mortgage.

During the periods of economic instability the activity of swindlers always increases therefore the banks crediting public market need to approach most carefully check of borrowers for preserving of quality of a portfolio. According to credit institutions which use our system "National Hunter" directed to counteraction to fraud at the interbank level in 2016 it was succeeded to prevent attempts of fraud for the amount more than 42 billion rubles. Thanks to National Hunter service banks can automate process of detection of suspicious requests at a stage of their consideration. It allows to carry out detailed inspections only of a part of borrowers and to optimize expenses on operating activities. Alexander Akhlomov, development director of products, experimental design bureau

2015

Additional services

On November 18, 2015 the Joint Credit Bureau started additional services within the National Hunter system.

According to experimental design bureau, nearly 100% of the organized fraudulent attacks happen to use of "false" phone numbers. Number capacity of telecom operators with the low level of identification at execution of number is in most cases used. The service based on data of Rossvyaz allows to segment operators on popularity level at swindlers that allows to automate process of verification of employment of applicants and to considerably reduce operating expenses.

Within fight against organized groups of swindlers of experimental design bureau started analytical service "Clusters of Negative Behaviour". Fraud is the separate "sphere of business" which participants try to cut down the operating expenses too, using the same phones and documents for the attack in several credit institutions.

It is extremely difficult to reveal chains of addresses of swindlers on the party of one credit institution as suspicious data are not used twice within attacks to the same bank. On the basis of the application information accumulated in Bureau from all participants of a system the model of communications of data is under construction and the data repeating in chains of the attacks – clusters of negative behavior are selected. Participants of service can send an inquiry to a system, having obtained information whether such data in earlier revealed clusters of negative behavior were used.

Both analytical services are available to the existing participants of National Hunter and do not require completions and significant changes of settings of a system. The principle of system operation is based on transfer of credit requests in Bureau where statements are processed on the Hunter platform. The arrived statements are compared to the historical data loaded by other participants of service (more than 40 largest credit institutions) therefore discrepancies in data or coincidence to the known cases of fraud come to light. In a year in a system more than 250 thousand attempts of fraud are fixed.

Alexander Akhlomov, the development director of products of the Joint Credit Bureau, noted:

"For the last year the share of requests with suspicion grew by fraud twice. If in 2014 the share of fraudulent requests made about 1% of the general flow of the entering statements, then according to the results of 9 months 2015 it exceeded 2%. And, if the total quantity of requests in a system was reduced by 30%, the number of suspicious requests grew by 46% that directly demonstrates activation of swindlers which banks faced. In the current situation the banks crediting public market need to approach most carefully check of borrowers for preserving of quality".

Start fraud bureau

The Joint Credit Bureau (JCB) started at the beginning of 2015 a fraud bureau for insurance companies on the platform National Hunter. Identification of high-risk clients and counteraction to fraud in a segment of voluntary car insurance will become the main objective of the new direction.

Service works in online the mode and will allow to make quickly and more deliberately decisions on each insurance application or compensation of damage. National Hunter will be useful to insurance companies for all product lifecycle of KASKO, including stages of cost determination of the policy, execution of the supplementary agreement, settlements of losses.

Service verifies the data specified in the statement with a great number of historical these all participants of insurance market who are stored in the database of experimental design bureau. Process of verification is based on use of a rule set, put in the software of National Hunter. As a result Service issues the report with indication of risk factors, or fraud probabilities and also the scoring point characterizing degree of potential risk. For maximum efficiency comparison is performed with policies and applications for compensation of damage both on KASKO, and according to the CMTPL.

"According to RSA insurance companies for 2013 lost more than 22 billion rubles in fabricated cases of the CMTPL and KASKO. This solution will help to reduce such losses and to prevent cases of organized fraud. At a stage of preliminary testing of service on historical data of 4 large insurance companies using service it was succeeded to reveal 85% of high-risk clients, - the CEO of experimental design bureau Daniel Zelensky says. Development and setup of service took place on the basis of the requirements developed by group of underwriters and workers of security services of a number of the largest insurance companies. We are grateful to them for participation in working meetings and examination in questions of warning and fight against fraud. The service "ground" under the existing business processes of insurers and a reality of the Russian market became result of joint work."

The experimental design bureau already have a successful experience of creation and development a fraud bureau for credit institutions. Since 2012 service National Hunter for Banks which includes more than 40 largest retail banks today works. Practice shows that "bad clients" and fraud go behind the credit to the banks which are not entering into our club that, in turn, promotes accession to service of new participants and further increase in its efficiency

"Insurance companies, as well as banks, incur heavy losses from high-risk clients, - the Chairman of the board of directors of experimental design bureau, the vice president of Sberbank of Russia Irina Kremleva comments. – Banks managed to combine the efforts on counteraction to fraud on National Hunter's platform several years ago, and results really impress. I am sure that in present conditions, consolidation of participants of insurance community will allow to make the market of car insurance more transparent and will give effective tools for objective assessment of a risk profile of the client. All this as a result will make business more profitable and also will provide loyalty of good clients".

The appeal to credit history and other services of Bureau for assessment of a risk profile of the client profitable not only to insurance companies, but also citizens. The international statistics confirms direct interrelation between accurate driving and timely execution of credit obligations. Credit history is some kind of financial passport of the person which gives real advantages in case of fair execution of credit obligations by it. Already now some insurance companies provide discounts for policies of KASKO to owners of good credit history.