Experian (LSE: EXPN, OTCQX: EXPGY) recently earned the Silver Medal in the 2025 Impact Awards from Datos Insights for its First-Party Fraud Scores innovation. This award highlights exceptional progress in spotting and stopping first-party fraud, which involves deceit by borrowers themselves, not just evaluating their ability to repay loans but also uncovering their intent to commit fraud.
First-party fraud is a growing concern for lenders and financial institutions because it can lead to costly defaults when borrowers intentionally commit fraud, such as applying for loans with no intention of repayment. Experian’s new solution uses advanced machine learning models that analyze a combination of credit and non-credit data, behavioral analytics, and identity graph techniques to detect suspicious applications and transactions immediately. This real-time capability allows decision-makers to intervene early, protecting institutions before losses occur.
One of the distinguishing features of Experian’s approach is its cross-industry visibility. Unlike many fraud detection tools that focus solely on historical repayment behavior within individual lenders, Experian aggregates data from multiple institutions and industries. This broader perspective enables the detection of coordinated fraud schemes that might slip through conventional systems. For example, it identifies “bust out” fraud where an individual accumulates credit lines across several lenders with the plan to default in a coordinated fashion. It also tracks repeat offenders who attempt fraud at various points of interaction.
Delivered through Experian’s Ascend Platform, the First-Party Fraud Scores suite offers several key components. The Consumer First-Party Fraud Scores flag early signs of payment default risk by analyzing up-to-date identity signals and broader industry patterns. The Bust Out Score specifically targets coordinated multi-institution defaults. Extending beyond consumer lending, the toolset includes Commercial First-Party Fraud Scores, which protect small business and commercial lending by weighing both business and individual credit data. This integrated view provides a comprehensive defense against fraud risk across various lending verticals.
Experian’s Chief Innovation Officer, Kathleen Peters, emphasized the importance of this unified platform in detecting multiple fraud dimensions at different stages of the lending process. By identifying fraudulent intent during application and account monitoring phases, lenders get a powerful tool to reduce high-risk accounts before defaults happen, ultimately saving money and protecting consumers.
The recognition by Datos Insights, the leading advisory partner for banking, insurance, and securities industries, underscores how important detecting first-party fraud is becoming in the broader fight against financial crime. Jim Mortensen, a strategic advisor at Datos Insights, pointed out the “significant market advantage” Experian achieves by using cross-industry data to spot complex fraud patterns. The award to Experian’s First-Party Fraud Scores shines a light on innovation that improves fraud detection not only in scale but also in precision, speed, and actionable outcomes.
Experian operates worldwide, serving many sectors beyond finance, including healthcare, automotive, and insurance. Its extensive data assets, combined with machine learning and identity intelligence solutions like Precise ID, allow it to develop sophisticated tools that continuously evolve in response to emerging fraud threats. Experian’s work reflects an ongoing commitment to helping businesses manage risk while empowering consumers to achieve financial goals.
This achievement is significant as financial fraud remains a costly and evolving problem globally. Solutions capable of early detection that look beyond historical credit behavior and focus on identifying intent are critical. Experian’s innovative approach demonstrates how data and technology can combine to offer lenders a more proactive defense, ultimately fostering greater trust and stability in financial markets.
For context, Datos Insights’ Impact Awards recognize companies that deliver meaningful advances in fraud and anti-money laundering solutions. Experian’s accolade represents both the quality and impact of its technology in an industry urgently seeking smarter fraud prevention methods.
Experian’s First-Party Fraud Scores innovation has earned well-deserved industry recognition for improving the way lenders assess and respond to fraud risk. By analyzing data across institutions with real-time machine learning models, Experian provides tools that go beyond traditional credit scoring to reveal fraudulent intent early and accurately, protecting both lenders and honest consumers alike.
