Press Release 12/20/2011

CLEARWATER, FL – December 12, 2011 – If the proof is in the numbers, then Clarity Services’ new Clear Subprime ID Fraud™ score is blowing away any doubt of it being just another identity fraud score. Clarity Services announced their new Subprime ID Fraud™ Score in October of this year and, after running more than a million reports, the satisfied customer results are pouring in. Clarity is an industry leader in subprime thin-file, and under banked consumer data reporting.

“Users are experiencing a four to five percent drop in credit default rates while also seeing an increase in the acceptance rate for good customers,” said Tim Ranney, president and founder of Clarity Services.

Designed with powerful identity verification elements and a custom Clarity Fraud Score derived from a combination of Clarity credit reporting and Experian identity fraud and credit report assets, Clear Subprime ID Fraud™’s customized score is specifically tailored for the subprime market. While the unique custom fraud score was created using a combination of Clarity and Experian’s data, it is not based on any of Experian’s current scoring models.

“Clarity’s Subprime ID Fraud™ product provides us with strong insight into our applicants’ identity profile and history,” said Timothy Li, vice president of risk strategies at Think Finance, a leading innovator in financial services for the under-banked segment. “This product quickly targets applicants that were previously undetected by our older tools. All of our products have since been converted to use the new Clear Subprime ID Fraud™, and this product has a much better hit rate than the product replaced,” added Li.

The new custom score and report address a variety of challenges faced in the subprime industry, including:

  • Detection of those consumers most likely to use their own real identity, or some version of it, to commit fraud in the application process.
  • Identification and return of the correct Social Security Number (SSN) for a consumer.
  • Determining if incorrect SSNs on an application are related to a harmless data entry error or a fraudulent attempt to obfuscate an identity.
  • Categorization of different fraud types to aid in the manual review process.
  • Identification of multiple SSNs, cell phones, addresses, emails and employer phone numbers associated with a specific bank account.

“The new report has proven to be highly predictive,” said Mike Cook, executive vice president of Clarity and former founder of ID Analytics. “Even when it is run after other identity screening products, this report identified significant pockets of identity fraud elements that have been missed by less powerful identity verification models” said Cook.

The Clear Subprime ID Fraud™ score joins an ever-broadening suite of credit and identity risk reporting tools available from Clarity that provide full visibility into a consumer’s use of alternative financial products, banking behavior, payment history and more. Clear Subprime ID Fraud™ is an FCRA compliant report that may be used to decline and accept consumers based solely on the returned score and data.

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