WHITE PAPER

The critical role of email
risk scoring in fraud prevention

Executive Summary: Using email as the global passport
to detect and deter fraud
Fraud leaders are pulled between two tensions: preventing fraud and supporting
low-friction transaction experiences consumers demand today. To achieve this, fraudteams need dynamic, global tools that evolve as fast as fraud tactics. This whitepaper
will provide background on why the dynamic tool you need to put at the center of yourfraud prevention strategy is staring right at you: the email address.
The email address is the global common denominator for doing business online.
Whether it’s a new insurance quote, account registration, or virtual claim response,
an email address is part of the process. According to Statista, email usage is predicted
to grow by 2 to 3% each year from 2018 to 2023.

Over 92% of emails in our network are personal.
(Why? Consumers prefer using email accounts
under their control. Corporate accounts are tied
to jobs, which change.)1
These trends represent why email is the logical front-end fraud prevention layer.
Every time an email address is used, it leaves a trace. Over time, those traces unveil
patterns of behavior. This story can be examined to assess the risk present in everytransaction. Our approach with LexisNexis® Emailage® offers less friction than othermethods (such as manual review) of determining whether a transaction is a fraudulent
attempt or legitimate customer.

“The biggest challenge facing companies isn’t necessarily
online fraud. Instead, it’s maintaining the delicate
balance between deterring fraudsters and delivering
seamless customer experiences.2”

1Introduction: The most underused variable in fraud prevention
When was the last time you were able to do anything online without an email address
required at some point in the process? When was the last time you worked at a company
that didn’t collect email addresses in some form or another?
Most companies view the email address as only useful for things like customer
notifications and marketing campaigns. But we know it is capable of so much more.

How does email risk scoring work?
LexisNexis Emailage goes beyond static data and illuminates the person behind atransaction using IP address, email and additional static and dynamic information tovalidate identity and accurately assess risk.
Many fraud prevention tools only analyze standard transaction data such as name oraddress. These are easy for fraudsters to trick, reverse-engineer, evolve and innovatearound. But fraudsters use email addresses in ways which fall into patterns that areidentifiable, based on velocity and structure.
Compared to data such as names and addresses, emails always use the same standard
syntax of username, “@” sign and domain name.

Here are just a few of the unique data points email addresses provide
and how they can work for you:
Name Matching: In general, email addresses have a name associated with them.
This name information provides an easy-to-compare data point to stop risky orfraudulent transactions.
Domain Information: Domain names are an integral part of an email address.

By researching the domain information, a carrier may identify: the age of theregistration, name of the registrant, street address and the email associated withthe domain registration.

The email address provides an enormous amountof behavior and history that is perfect for frauddetection and prevention.
In most cases, an email address alone is not considered personally identifying
information (PII). Because PII laws limit what certain organizations can use forfraud detection, it is safer for organizations to use an email address versus moresensitive data. Users can choose any combination of numbers or letters whencreating their email address. This means an email address is not intrinsicallytied to a person’s identity, and insurance carriers will not need to go throughadditional legal review to use email as part of their risk engine.

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The power of fighting network-to-network
Fraudsters have no regard for industry or region.
The only way to stop them is with the power of a
combined network.
Our global email risk intelligence has 96% coverageof email addresses worldwide, as well as thehistory and behavior associated with email andIP addresses.

Utilizing positive and negative
behaviors, along with network
intelligence, paints a full pictureof a consumer’s risk profile. This
also enables real-time trackingof trends for greater certainty
in decisioning.

There are other methods to verify identity. However, if your company operates globally,
these methods have limitations or may not even be available. Unlike a physical address,
driver’s license or even phone number, the email address works globally.
LexisNexis Email intelligence provides the additional layer of defense you need to havea comprehensive fraud prevention strategy. Identity verification by phone number
often focuses on domestic coverage, as getting reliable telecom data varies by country.
Verification by device ID is a powerful fraud detection tool, but consumers tend tochange devices every few years. Because most consumers keep the same email addressfor 10+ years, Emailage provides a deep history of behavior and patterns toidentify outliers.

How LexisNexis Emailage drives ROI by identifying high-risk transactions
Utilizing non-transaction data gives fraud prevention teams additional intelligence
to make confident risk decisions. This is achieved with additional information likewhether the email account is active and valid, its tenure, ownership and previoustransaction behavior.
Using this information as a front-end layer of security empowers fraud leaderswith intelligence for accurate risk decisioning.

Improve Fraud Hit Rate: 42% identified as high risk by Emailage turned

out to be fraud.3

Streamline Processes: Optimize your manual review queue using Emailage
with custom rules to streamline workflows so good customers have a seamlessexperience, and the riskiest transactions are automatically stopped forverification and manual review.

“Unlike a physical address, driver’s license or even phone number,4		the email address works globally.

”3

“91% of email users have the same email address for at least

three years, and 51% of email users have the same email addressfor over 10 years.5”

The critical role of LexisNexis Emailage in approving more transactions
Emailage helps capture revenue by approving more transactions that might haveotherwise been sent to manual review.
Emailage segments transactions into risk bands, determined by the product’s
sophisticated risk assessment algorithm. Carriers can implement different businessrules to each risk band, using Emailage as a decisioning tool to help determine which
low-risk transactions can be fast-tracked and automated, versus which high-risk
transactions require human intervention and elevated scrutiny.
Emailage’s approach to machine learning enables users to leverage custom
rules so only truly risky transactions require review. These rules are designed toimprove over time, increasing in accuracy as you share fraud events, and rules arecontinually fine-tuned for your region and your business. Then, you can optimize
manual review, sending only the highest-risk transactions.

Examples include:• Links to known fraud events• High-risk domains and locations• Segmentation of emails with risky behaviorsYour business already captures email address information for policies, transactions
and engagement. Use it to effectively deter fraud and deliver seamless experiences toyour customers.

Bottom Line: LexisNexis Emailage simplifies fraud prevention. You can save moneyby using the right fraud signals and grow your business by removing friction fromcustomer experiences.

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How LexisNexis Emailage drives ROI by identifying low-risk transactions
New Revenue: Low fraud scores allow fraud teams to approve moretransactions upfront. This includes thousands of cases that may have been
declined or stopped for manual review. The result is increased revenue withminimum fraud exposure.

Customer Experience: Allow orders to be processed in more seamless ways,
driving increased customer satisfaction and retention.

Optimization: Scale your business.
New Lines of Business: Spur business growth by expanding into
new markets.

How Emailage drives ROI by optimizing manual review
Optimization: Automate workflows and processes, so only theriskiest transactions are moved to manual review.

Speed: Review high-risk cases faster.
Accuracy: Make confident risk decisions, reduce errors andimprove overall scoring.

Efficiency: Reduce the percent of cases sent to manual review, which could
lead to saving significant amounts of time.

5“95% of customers surveyed would recommend Emailage.

”

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An overview of use cases
Online Quotes: Identify fraud risk for new business to more accurately quote rates andquickly process low-risk applicants.

Account Setup and Maintenance: Protect customers from account takeover by evaluating
the fraud risk of a digital identity.

Virtual Claims Processing: Automate claims workflows with confidence by verifying
identities.

The LexisNexis Emailage impact

277 billion global
data points analyzed

8.2 million confirmed
fraud emails shared

22,500 fraud emails
shared daily

Processed transactionsin 150+ countries
by IP address

Prevented $4.5 billionof fraud globally

95% of customers
surveyed wouldrecommend Emailage

6For more information, call 800.458.9197
or email insurance.sales@lexisnexis.com

About LexisNexis® Risk Solutions
LexisNexis Risk Solutions harnesses the power of data and advanced analytics to provide insights that help businesses and governmental
entities reduce risk and improve decisions to benefit people around the globe. We provide data and technology solutions for a wide rangeof industries including insurance, financial services, healthcare and government. Headquartered in metro Atlanta, Georgia, we have offices
throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information-based analytics and decision tools for
professional and business customers. For more information, please visit www.risk.lexisnexis.com and www.relx.com.
Our insurance solutions assist insurers with automating and improving the performance of critical workflow processes to reduce expenses,
improve service and position customers for growth.

Internal Emailage, now LexisNexis Risk Solutions Report, (February 2017)
Results are average and are based on multiple POCs done with new customers and incremental benefits received by existing customers. These may vary based on
different geographies, customer inputs and industries.
4Testa, Amador “Personal and corporate domain queries”, LinkedIn, retrieved 11 August 2021 from https://www.linkedin.com/pulse/epic-power-email-addressfraud-prevention-amador-testa/
5“DMA Insight: Consumer email tracking study 2015,” The Direct Marketing Association, retrieved 26 April 2017 from https://dma.org.uk/uploads/56543b6e6d645email- tracking-report-2015_56543b6e6d5b5.pdf

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Emailage provided by LexisNexis is not provided by “consumer reporting agencies” as that term is defined in the Fair Credit Reporting Act (15 U.S.C. § 1681, et seq.)(FCRA) and does not constitute a “consumer report” as that term is defined in the FCRA. Emailage may not be used in whole or in part as a factor in determining
eligibility for credit, insurance, or employment or for any other eligibility purpose that would qualify it as a consumer report under the FCRA. Due to the natureand origin of public record information, the public records and commercially available data sources used in reports may contain errors. Source data is sometimes
reported or entered inaccurately, processed poorly or incorrectly, and is generally not free from defect. This product or service aggregates and reports data,as provided by the public records and commercially available data sources, and is not the source of the data, nor is it a comprehensive compilation of the data.
Before relying on any data, it should be independently verified. LexisNexis and the Knowledge Burst logo are registered trademarks of RELX Inc. Emailage
is a registered trademark of Emailage Corp. Other products and services may be trademarks or registered trademarks of their respective companies.
Copyright © 2021 LexisNexis Risk Solutions. NXR14971-00-0721-EN-US