These days, the call for financial inclusion is being answered by a disruptive force of new financial products and services. From fintech to storied institutional players, we're seeing a variety of offerings that are increasingly accessible and affordable for consumers. It's a step in the right direction. And beyond the moral imperative, companies that meet the call are finding that financial inclusion can be a source of business growth and a necessity for staying relevant in a competitive marketplace. A diaspora of credit-invisible consumers To start, let's put the problem in context. A 2022 Oliver Wyman report found about 19 percent of the adult population is either credit invisible (has no credit file) or unscoreable (not enough credit information to be scoreable by conventional credit scoring models). But some communities are disproportionately impacted by this reality. Specifically, the report found: Black Americans are 1.8 times more likely to be credit invisible or unscoreable than white Americans. Recent immigrants may have trouble accessing credit in the U.S., even if they're creditworthy in their home country. About 40 percent of credit invisibles are under 25 years old. In low-income neighborhoods, nearly 30 percent of adults are credit invisible and an additional 16 percent are unscoreable. Younger and older Americans alike may shy away from credit products because of negative experiences and distrust of creditors. Similarly, the Federal Deposit Insurance Corporation (FDIC) reports that an estimated 5.4 percent (approximately 7.1 million) households, were unbanked in 2019 — often because they can't meet minimum balance requirements or don't trust banks. Credit invisibles and unscoreables may prefer to deal in a cash economy and turn to alternative credit and banking products, such as payday loans, prepaid cards, and check-cashing services. But these products can perpetuate negative spirals. High fees and interest can create a vicious cycle of spending money to access money, and the products don't help the consumers build credit. In turn, the lack of credit keeps the consumers from utilizing less expensive, mainstream financial products. The emergence of new players Recently, we've seen explosive growth in fintech — technology that aims to improve and automate the delivery and use of financial services. According to market research firm IDC, fintech is expected to achieve a compound annual growth rate (CAGR) of 25 percent through 2022, reaching a market value of $309 billion. It's reaching mass adoption by consumers: Plaid® reports that 88 percent of U.S. consumers use fintech apps or services (up from 58 percent in 2020), and 76 percent of consumers consider the ability to connect bank accounts to apps and services a top priority. Some of these new products and services are aimed at helping consumers get easier and less expensive access to traditional forms of credit. Others are creating alternative options for consumers. Free credit-building tools. Experian Go™ lets credit invisibles quickly and easily establish their credit history. Likewise, consumers can use Experian Boost™ to build their credit with non-traditional payments, including their existing phone, utility and streaming services bills. Alternative credit-building products. Chime® and Varo® , two neobanks, offer credit builder cards that are secured by a bank account that customers can easily add or withdraw money from. Mission Asset Fund, a nonprofit focused on helping immigrants, offers a fee- and interest-free credit builder loan through its lending circle program. Cash-flow underwriting. Credit card issuers and lenders, including Petal and Upstart, are using cash-flow underwriting for their consumer products. Buy now, pay later. Several Buy Now Pay Later (BNPL) providers make it easy for consumers to pay off a purchase over time without a credit check. Behind the scenes, it's easier than ever to access alternative credit data1 — or expanded Fair Credit Reporting Act (FCRA)-regulated data — which includes rental payments, small-dollar loans and consumer-permissioned data. And there are new services that can help turn the raw data into a valuable resource. For example, Lift PremiumTM uses multiple sources of expanded FCRA-regulated data to score 96 percent of American adults — compared to the 81 percent that conventional scoring models can score with traditional credit data. While we dig deeper to help credit invisibles, we're also finding that the insights from previously unreported transactions and behavior can offer a performance lift when applied to near-prime and prime consumers. It truly can be a win-win for consumers and creditors alike. Final word There's still a lot of work to be done to close wealth gaps and create a more inclusive financial system. But it's clear that consumers want to participate in a credit economy and are looking for opportunities to demonstrate their creditworthiness. Businesses that fail to respond to the call for more inclusive tools and practices may find themselves falling behind. Many companies are already using or planning to use alternative data, advanced analytics, machine learning, and AI in their credit-decisioning. Consider how you can similarly use these advancements to help others break out of negative cycles. 1When we refer to “Alternative Credit Data," this refers to the use of alternative data and its appropriate use in consumer credit lending decisions, as regulated by the Fair Credit Reporting Act. Hence, the term “Expanded FCRA Data" may also apply in this instance and both can be used interchangeably.

Previously, the Global Identity and Fraud Report called for businesses to meet consumer expectations for online recognition and security while improving the digital experience. Organizations have answered this call with investments and new initiatives, but the fraud risk persists and consumers are relying on businesses to protect them. In our latest report, we explore the issues associated with siloed recognition processes, consumer expectations and preferences, and effective risk strategies.   We surveyed more than 6,000 consumers and 1,800 businesses worldwide about this connection for our 2022 Global Identity and Fraud Report.   This year’s report dives into:   How online security yields engagement and trust with today’s digital consumers The role of businesses in protecting online consumers, and the associated benefits The current opportunity for businesses to implement multiple identity and fraud solutions The role that orchestration and outsourcing play in helping companies prevent fraud   To earn consumer trust and loyalty, organizations need to leverage automated solutions to identify and protect consumers across their online journeys while providing seamless recognition and low-friction fraud prevention with a robust and flexible fraud platform. To learn more about our findings and how to implement an effective solution, download Experian’s 2022 Global Identity and Fraud Report. Read the report Review your fraud strategy

Last month my blog discussed how Building the Perfect Audience is Like Building the Perfect Burger! It was National Hamburger Month, so it seemed apropos! We offered marketers insight into building better audiences to help run more strategic marketing campaigns. This month, I am keeping with the monthly ‘holiday’ theme. June 20th was National American Eagle Day and being so close to our 4th of July holiday, I thought this was a perfect tie-in this month! You are probably wondering how I am going to tie in National American Eagle Day with another marketing strategy, but I promise you, I can! It’s all about having strategic insight into your customers and using an “eagle eye” to learn what you can about them to obtain better results from your marketing efforts. An eagle's-eye approach to finding and reaching the right consumers Here are a few fun facts about the great American Bald Eagle. Bald Eagles were placed at the center of the Great Seal of the United States in 1782! “Bald” in Bald Eagle refers to an old English word that means “white-headed.” We’ve all heard people talk about having an “eagle eye.” It’s true—this comes from the eagle’s astonishing eyesight. Eagles can see clearly and about eight times as far as humans can, allowing them to spot and focus on a rabbit or other prey at a distance of about two miles. Can you imagine? They can also look ahead and to the side simultaneously with a 340-degree visual field! Imagine if you had an eagle-eye, 340-degree view of your customers or prospects before running a marketing campaign. Well, you can. Experian data insights offers an eagle-eye approach to finding and reaching the right consumers at the right time in the buying journey to help you eliminate marketing waste and deliver a more significant return on your marketing spend. Understanding your customers is key With Experian’s Insights solution, as part of our comprehensive Experian Marketing Engine, we offer OEM marketers, agencies, and larger dealer groups access to multiple Insight categories to learn more about your customers. Understanding your current customers or the segment of prospects you would like to target allows for a more strategic approach to marketing campaigns. Our brand, model, registration, title, finance, market analysis, lifestyle, and household insights can help you take a 360-degree view of your customer (that's right, 360 degrees, 20 degrees more than an eagles eye!) There’s a lot of discuss here, so we’ve put together a complimentary resource, Understand Your Customer Before Choosing Your Audience that explains all the ways you can use Insights to learn more about your customers. What is the Experian Marketing Engine? Insights is part of the Experian Marketing Engine marketing solution that helps automotive marketers, manufacturers, advertisers, agencies, and platforms identify the right audience, uncover the most appropriate communication channels, develop messages that resonate, and measure the effectiveness of marketing activities.

According to Experian’s State of the Automotive Finance Market Report: Q1 2022, credit unions had their highest total share in five years

The Threat “With criminals, there’s no such thing as a border anymore. They don’t care where you are, who you are; if there’s money to take from you, they will take it.” That’s what U.S. Secret Service Agent Eric Adams had to say when asked about cybersecurity threats during the “Global Cyber Threatscape & the Role of Law Enforcement” panel I moderated at the latest NetDiligence CyberRisk Summit event. It’s clear to law enforcement that cybercriminals are hyper-connecting, deep information sharing, and crossing virtual borders—becoming more brazen (and clever) by the breach—leaving businesses, insurers, organizations, regulators, and consumers in the cross hairs of compromise, compliance, and recoupment. “We work with law enforcement; we work with insurance companies. We’re collecting data and trying to solve those problems because we understood that if you don’t cooperate before the incident, you don’t work together [at all].” – Michael Bruemmer, Experian During the “Beyond the Arrest: Law Enforcement Roundtable,” Adams and three other cross-border experts, Brian Abellera, Jason Conboy, and Matt Robinson, gave in-depth accounts of “cross-border incident response and the role of U.S. cyber law enforcement and oversees intelligence.” “We’re seeing smaller and medium-sized businesses [being targeted by ransomware]. We are really struggling to keep up with the information flow.” – Matt Robinson, RCMP I frequently talk about how quickly the threats are evolving and how Every Minute Counts in data breach response. The panel echoed this sentiment tenfold, covering five key topics, including “Unique Characteristics of U.S.-Canada Cyber” and “Public-Private International Cooperation.” The Evidence Board “We have to be nimble like the cybercriminals; putting in cyber liaisons internationally.” – Jason Conboy, U.S. Department of Homeland Security Investigations From stem swapping, ransomware revictimization, and romance schemes, the experts discussed how cross-border threats are infiltrating every square inch of the data security landscape. They also focused on the critical role of education, tabletop exercises, and timely incident reporting while zeroing in on how public-private partnerships can influence better outcomes and impact data protection, regulation, and litigation. Watch the full NetDiligence Cyber Risk Summit session on-demand

When acquiring inventory for your used lot, using AutoCheck Vehicle History Reports is like an ‘insurance’ policy! As the industrial-strength vehicle history report, AutoCheck helps dealers manage risk and confidently buy and sell more of the right vehicles. We’re so confident in our solution that we offer buyback protection. When is AutoCheck Buyback Protection available? AutoCheck Buyback Protection is available for vehicles with an AutoCheck vehicle history report if a certain title brand is found after the vehicle is reported to be free of the brand. AutoCheck Buyback Protection provides: A full year of coverage to protect consumers from major title problems that the Department of Motor Vehicles may have missed Coverage for the purchase price of the vehicle (up to 110% of the NADAguides.com published retail value) PLUS up to $500 in aftermarket accessories Title brands covered by the Buyback Protection plan include: Junk or salvage Dismantled, rebuilt, or reconstructed Flood damage Hail damage Fire damage Bought back by the manufacturer (“lemon law”) Odometer exceeds mechanical limits Odometer was not actual mileage How do consumers take advantage of AutoCheck Buyback protection? Consumers must register for AutoCheck Buyback protection within 90 days of the vehicle purchase date The AutoCheck report must have been run before purchasing the vehicle Consumers must provide a copy of the front and back of the branded title certified by the issuing state. The branded title must have been issued at least 60 days before the AutoCheck vehicle history report was run. Consumers must complete and submit a claim form and provide a complete copy of the AutoCheck vehicle history report Consumers have one year from the vehicle history run date to file a claim Don’t forget to remind your customers to register for the protection plan! Manage risk and protect your business with AutoCheck AutoCheck vehicle history reports can help you make the most informed decisions and minimize risk when purchasing a used vehicle! With tens of thousands of distinct accident sources, AutoCheck has more accident data than other providers. AutoCheck has data from over 95% of U.S. auction houses with 82% manufacturer coverage of open recall data for vehicles on the road We aggregate and analyze tens of thousands of distinct accident sources; many provided only to AutoCheck The only VHR integrated on all the top consumer vehicle shopping sites Become an AutoCheck Member Today!  

In the first six months of 2021, there was $590 million in ransomware-related activity, which exceeds the value of $416 million reported for the entirety of 2020 according to the S. Treasury's Financial Crimes Enforcement Network. Constant economic pressure coupled with the ever-increasing volume of data online have created an environment that’s ripe for attacks, leaving businesses and consumers vulnerable to attacks and theft. What are ransomware attacks? Ransomware is a subset of malicious software, AKA malware, that either threatens to publish or block access to data or a computer system. It often takes the form of a cyberattack where criminals take over an organization’s computer network. Once they’ve assumed control, the hackers demand a ransom to restore access to the illicitly encrypted data. Additionally, ransomware attacks and data breaches are now becoming more closely linked, with sensitive data including employees’ personal information, HR records, and more being filtered out and distributed during or after the attack. In fact, Experian has found that 7 of 10 data breaches involve ransomware. The negative impact of ransomware attacks According to the Identity Theft Resource Center, the average ransom demand in 2021 was $5.3 million, a 518% increase from the 2020 average. Experian’s latest Data Breach Response Guide found that businesses were hit with ransomware attacks every 11 seconds in 2021. These attacks also take up to 20% longer to begin breach notifications, leaving businesses even more vulnerable. In addition to the monetary loss and the time spent responding to and recovering from the attack, businesses also stand to suffer reputational damage, because consumer sentiment is that companies are responsible for protecting data. Having a plan in place makes a sizeable impact though, with 90% of consumers being more forgiving of companies that had a response plan in place prior to a breach. How to protect against ransomware attacks Experian’s 2022 Future of Fraud Forecast predicts that ransomware will be a significant fraud threat for companies as fraudsters will look for a sizeable ransom to cede control and potentially steal data from the hacked company. Preparing for the possibility of an attack includes training your staff to spot the signs of a phishing attempt, having a response plan in place, and leveraging partner solutions. To learn more about how Experian helps businesses protect against the fallout of a ransomware attack, visit us, and be sure to read about our other Future of Fraud predictions about cryptocurrency and Buy Now, Pay Later fraud. Request a call Future of Fraud Forecast

As we navigate a new way of living, working, and handling the unpredictability of COVID-19 and other potential health concerns worldwide, now is not the time to ease up on data breach preparedness. I’ve said it many times before, and I’ll repeat it, every minute counts in today’s fast-breaking data breach response environment. As pointed out in the foreword of the 8th Annual Experian® 2022 Data Breach Response Guide, “Almost everything is done and undone with a screen touch, keystroke, password, or pin.” It is a convenient reality for consumers looking to make quick, returnable digital purchases, as it is for hackers who can cause irreversible financial and reputational harm to companies and organizations. In this world, it’s not an option to put data breach preparedness on the back burner. Every employee in your organization, from the C-suite to the call center, must stay ready. In 2021, the average cost of a data breach was $4.24 million.[1] Industry Perspectives, Current Data, Consumer Response  New and improved for 2022-2023, our latest Data Breach Response Guide is an in-depth preparedness page-turner, complete with predictions, trends, experienced-based advice from Experian experts, and real-world incident insight informed by servicing breaches over 15 years. The Highlights  I’ve managed the roll-out of this guide for years, and I have to say, this guide is the most comprehensive and data-dense one yet. It has everything you need to learn how to prepare, plan, practice, audit, and manage your crisis response. You’ll get details on: The Rise of Ransomware—one happened every 11 seconds in 2021[2] What do businesses think about response plan drills?—84% agree their plans could be more effective with drills[3] Why hackers’ top industry target is still healthcare) and why How Experian® Crisis Solutions helps companies recover strong, much more Cyberattack Preparation is Paramount Cybersecurity and data breach preparedness is changing by the minute. Experian is expanding its product offerings, staying on top of rising threats, and relying on our deep experience to support partners when they need us most. Ready to learn more about how to stay ready for a data breach? Download the Experian® Data Breach Guide now. For additional preparedness insights, sign up for our free resource hub. [1] IBM & Ponemon 2021 Cost of a Data Breach Report [2] Cybersecurity Ventures, Cybercrime to Cost the World $10.5 Trillion Annually by 2025 [3] Experian and Ponemon. 2022. Ninth Annual Study: Is Your Company Ready for a Big Data Breach

Credit reports and conventional credit scores give lenders a strong starting point for evaluating applicants and managing risk. But today's competitive environment often requires deeper insights. Experian develops industry-leading credit attributes and models using traditional methods, as well as the latest techniques in machine learning, advanced analytics and Alternative credit data — or expanded Fair Credit Reporting Act (FCRA)-regulated data)1 to unlock valuable consumer spending and payment information so businesses can drive better outcomes, optimize risk management and better serve consumers READ MORE: What is Alternative Credit Data? Turning credit data into digestible credit attributes Lenders rely on credit attributes — specific characteristics or variables based on the underlying data — to better understand the potentially overwhelming flow of data from traditional and non-traditional sources. However, choosing, testing, monitoring, maintaining and updating attributes can be a time- and resource-intensive process. Experian has over 45 years of experience with data analytics, modeling and helping clients develop and manage credit attributes and risk management. Currently, we offer over 4,500 attributes to lenders, including core attributes and subsets for specific industries. These are continually monitored, and new attributes are released based on consumer trends and regulatory requirements.2 Lenders can use these credit attributes to develop precise and explainable scoring models and strategies. As a result, they can more consistently identify qualified prospects that might otherwise be missed, set initial limits, manage credit lines, improve loyalty by applying appropriate treatments and limit credit losses. Using expanded credit data effectively Leveraging credit attributes is critical for portfolio growth, and businesses can use their expanding access to credit data and insights to improve their credit decisioning. A few examples: Spot trends in consumer behavior: Going beyond a snapshot of a credit report, Trended 3DTM attributes reveal and make it easier to understand customers' behavioral patterns. Use these insights to determine when a customer will likely revolve, transact, transfer a balance or fall into distress. Dig deeper into credit data: Making sense of vast amounts of credit report data can be difficult, but Premier AttributesSM  aggregates and summarizes findings. Lenders use the 2,100-plus attributes to segment populations and define policy rules. From prospecting to collections, businesses can save time and make more informed decisions across the customer lifecycle. Get a clear and complete picture: Businesses may be able to more accurately assess and approve applicants, simply by incorporating attributes overlooked by traditional credit bureau reports into their decisioning process. Clear View AttributesTM uses data from the largest alternative financial services specialty bureau, Clarity Services, to show how customers have used non-traditional lenders, including auto title lenders, rent-to-own and small-dollar credit lenders. The additional credit attributes and analysis help lenders make more strategic approval and credit limit decisions, leading to increased customer loyalty, reduced risk and business growth. Additionally, many organizations find that using credit attributes and customized strategies can be important for measuring and reaching financial inclusion goals. About 25 percent of U.S. consumers have a thin credit file (fewer than five credit accounts). And about 19 percent of consumers either don’t have a credit file or don’t have information for conventional scoring models to score them.3 Expanded credit data and attributes can help lenders accurately evaluate many of these consumers and remove barriers that keep them from accessing mainstream financial services. READ MORE: How Expanded FCRA Data Is Revolutionizing the Credit Universe There's no time to wait Businesses can expand their customer base while reducing risk by looking beyond traditional credit bureau data and scores. About 60 percent of U.S. financial institutions are already using or plan to use alternative data, machine learning, AI and advanced analytics in their credit decisioning.3 Download our latest e-book on credit attributes to learn more about what Experian offers and how we can help you stay ahead of the competition.  Download e-book  Learn more 1When we refer to “Alternative Credit Data," this refers to the use of alternative data and its appropriate use in consumer credit lending decisions, as regulated by the Fair Credit Reporting Act. Hence, the term “Expanded FCRA Data" may also apply in this instance and both can be used interchangeably. 2Experian (May 2021) Experian Credit Attributes. 3Oliver Wyman  (12, January 2022) Financial Inclusion and Access to Credit. 4 Forrester (April 2022) Opportunity Snapshot: A Custom Study Commissioned by Experian.

We are thrilled to introduce a new quarterly series, Automotive Consumer Trends & Analysis. For years, Experian has been delivering automotive insights in our State of the Automotive Finance Market and Automotive Market and Registration Trends quarterly presentations. We are now bringing similar insights and analyses to the automotive consumer market. At Experian, we understand that marketers need to have a deep understanding of consumers in order to develop targeted, effective marketing strategies. Whether you are an OEM marketer, an agency or large dealer group our presentations will transform complex market data into actionable insights that you can begin using immediately. Learn more about vehicle segments and consumers Would you like to understand which people are buying what vehicles with a clear view of what these consumers look like? The Automotive Consumer Trends & Analysis presentations will provide updated quarterly insights on specific vehicle segments and the associated consumers within that segment. We’ll answer questions like: How many vehicles are on the road? Where are they located? How have recent registrations shifted the geographic distribution? Which manufacturers are selling those vehicles? Who is taking market share from whom? Who are the consumers who registered those vehicles? What are the demographic and psychographic insights for those consumers? We’ll also cover industry news and provide a special market analysis Inaugural Presentation! Release Date: June 23rd Segment: Crossover Utility Vehicles (CUV) You’ll leave the presentation with insights you need to make more strategic marketing decisions and better connect with consumers. Register now for the Automotive Consumer Trends & Analysis quarterly series. Once you register, you’ll receive an email when the presentation has been released.

Today’s OEM marketers, agencies and large dealer groups are under tremendous pressure to connect with consumers across multiple marketing channels. Finding a wide variety of relevant audiences is critical to campaign success. Because May is National Hamburger Month (yep, it’s a real thing), I will compare building the perfect burger to building the ideal automotive audience. Here we go. First, imagine your favorite burger joint (or gourmet burger eatery). You start by opening the menu and likely seeing some of the house “standards.” These are the traditional favorites available “off the menu” with little fuss. Burger with American cheese, Burger with lettuce, onion and tomato. Easy peasy. These types of offerings are similar to what we call our Syndicated audiences. Experian has more than 600 syndicated audiences that are readily available and on the shelf of most trusted platforms. More Choices and Options After that, things get interesting with lots of options to make your burger exactly how you want it. Do you want beef, veggie, portobello mushroom or maybe even bison as your “burger” choice? Cheese? Sure, but what kind? American, cheddar, swiss, blue, pepper jack? And what about toppings? Fried onion strings, raw, cooked? Mushrooms? Jalapenos? Ketchup, mustard, hot sauce, chipotle? Don’t even get me started about your bun choices! You see where I am going with this. With Experian’s Audiences, we have four more levels after our Syndicated Audiences that can help you create the targeted audiences you need based on your specific strategy. From Syndicated to Premium to Custom: Build the Perfect Audience For example, do you need to target in-market customers for a new or used vehicle?  Equity positioning? End of term? Alternate fuels? A specific make and/or model? Do you need to target consumers by a particular price range? We can also build custom audiences based on your first-party data coupled with our data resources to help with vehicle launches, services campaigns and any unique audience need you have. We don’t expect you to understand all of this in a short blog, so we’ve written a complimentary resource, Automotive Audience Choices are Key to Ever-Changing Strategies, explaining each of the five categories of audiences. Download it to learn how to build the perfect burger—I mean audience. By the way, as a Midwestern girl, my favorite burger is a traditional cheeseburger with all the fixins—so bring on the sharp cheddar, lettuce, tomatoes, pickles and fried onions. What’s yours? Feel free to email me about burgers or audiences! Audiences is part of the Experian Marketing Engine marketing solution that helps automotive marketers, manufacturers, advertisers, agencies, and platforms identify the right audience, uncover the most appropriate communication channels, develop messages that resonate, and measure the effectiveness of marketing activities.

From awarding bonus points on food delivery purchases to incorporating social media into their marketing efforts, credit card issuers have leveled up their acquisition strategies to attract and resonate with today’s consumers. But as appealing as these rewards may seem, many consumers are choosing not to own a credit card because of their inability to qualify for one. As card issuers go head-to-head in the battle to reach and connect with new consumers, they must implement more inclusive lending strategies to not only extend credit to underserved communities, but also grow their customer base. Here’s how card issuers can stay ahead: Reach: Look beyond the traditional credit scoring system With limited or no credit history, credit invisibles are often overlooked by lenders who rely solely on traditional credit information to determine applicants’ creditworthiness. This makes it difficult for credit invisibles to obtain financial products and services such as a credit card. However, not all credit invisibles are high-risk consumers and not every activity that could demonstrate their financial stability is captured by traditional data and scores. To better evaluate an applicant’s creditworthiness, lenders can leverage expanded data sources, such as an individual’s cash flow or bank account activity, as an additional lens into their financial health. With deeper insights into consumers’ banking behaviors, card issuers can more accurately assess their ability to pay and help historically disadvantaged populations increase their chances of approval. Not only will this empower underserved consumers to achieve their financial goals, but it provides card issuers with an opportunity to expand their customer base and improve profitability. Connect: Become a financial educator and advocate Credit card issuers looking to build lifelong relationships with new-to-credit consumers can do so by becoming their financial educator and mentor. Many new-to-credit consumers, such as Generation Z, are anxious about their finances but are interested in becoming financially literate. To help increase their credit understanding, card issuers can provide consumers with credit education tools and resources, such as infographics or ‘how-to’ guides, in their marketing campaigns. By learning about the basics and importance of credit, including what a credit score is and how to improve it, consumers can make smarter financial decisions, boost their creditworthiness, and stay loyal to the brand as they navigate their financial journeys. Accessing credit is a huge obstacle for consumers with limited or no credit history, but it doesn’t have to be. By leveraging expanded data sources and offering credit education to consumers, credit card issuers can approve more creditworthy applicants and unlock barriers to financial well-being. Visit us to learn about how Experian is helping businesses grow their portfolios and drive financial inclusion. Visit us

Many financial institutions have made inclusion a strategic priority to expand their reach and help more U.S. consumers access affordable financial services. To drive deeper understanding, Experian commissioned Forrester to do new research to identify key focal points for firms and how they are moving the needle. The study found that more than two-thirds of institutions had a strategy created and implemented while one-quarter reported they are already up and running with their inclusion plans.1 Tapping into the underserved The research examines the importance of engaging new audiences such as those that are new to credit, lower-income, thin file, unbanked and underbanked as well as small businesses. To tap into these areas, the study outlines the need to develop new products and services, adopt willingness to change policies and processes, and use more data to drive better decisions and reach.2 Expanded data for improved risk decisioning The research underlines the use of alternative data and emerging technologies to expand reach to new audiences and assist many who have been underserved. In fact, sixty-two percent of financial institutions surveyed reported they currently use or are planning to use expanded data to improve risk profiling and credit decisions, with focus on: Banking data Cash flow data Employment verification data Asset, investments, and wealth management data Alternative financial services data Telcom and utility data3 Join us to learn more at our free webinar “Reaching New Heights Together with Financial Inclusion” where detailed research and related tools will be shared featuring Forrester’s principal analyst on Tuesday, May 24 from 10 – 11 a.m. PT. Register here for more information. Find more financial inclusion resources at www.experian.com/inclusionforward. Register for webinar Visit us 1 Based on Forrester research 2 Ibid. 3 Ibid.

Cryptocurrency scams are on the rise as digital currencies gain popularity. The decentralized nature of these currencies makes them equally attractive to both legitimate consumers and fraudsters. Businesses may find themselves in a difficult position as they seek to prevent cryptocurrency-related fraud and help protect consumers. What are cryptocurrency scams? Cryptocurrencies are virtual currencies often based on and secured by blockchain technology. However, this does not always translate into security for the individual consumer. Many individuals fall victim to either cryptocurrency investment scams or cryptocurrency theft. Cryptocurrencies are not yet well-regulated or backed by a sovereign entity, leaving consumers open to threats when purchasing funds. The deregulated nature of the currencies makes it easy for scammers to build what appear to be legitimate cryptocurrency projects before disappearing, similar to pump-and-dump stock schemes. Additionally, scammers will perpetrate romance or other relationship-based scams and convince the victim to send them funds in cryptocurrency form. Cryptocurrency theft follows a few traditional fraud patterns: The fraudster may use phishing or social engineering to steal credentials. A crime ring might leverage malware or keystroke loggers to do the same thing. A scammer might present a “reward” to an unsuspecting consumer and require access to their wallet in order to “gift” the reward. Scammers consistently find new ways to trick unsuspecting consumers, including a recent scam relying on QR codes to steal funds converted to cryptocurrency via an ATM. Other common scams utilize imposter websites, fake mobile apps, bad tweets, or scamming emails to steal information and funds. The impact of scams on consumers According to the FTC, investment cryptocurrency scam reports have skyrocketed, with nearly 7,000 people reporting losses totaling more than $80 million from October 2020 to March 2021, with a media loss of $1,900. In 2020 the Better Business Bureau Scam Tracker Risk Report ranked cryptocurrency scams as the seventh riskiest. In 2021, they jumped to the second riskiest scam. In Michigan alone 31 cryptocurrency scams were reported from January 2020 to March 2022, with reported loses from $350 all the way to $41,000. The impact of scams on businesses While the true impact of cryptocurrency scams on businesses is hard to measure, it’s easy to identify several areas for concern. First is the opportunity for the theft of personally identifiable information (PII) during a fraudulent cryptocurrency transaction. Once fraudsters have stolen funds, they may also funnel them through a legitimate business and turn them into a regulated form of currency for easy of use. Businesses with legitimate cryptocurrency interactions may also suffer from spoofed apps or websites, causing reputational damage when consumers are taken in by a scam. Preventing the fallout from scams As companies debate accepting cryptocurrency as a form of payment, it’s important to consider that funds may be stolen or accessed by a malicious party. One way to protect your organization is to have a strong device identification strategy that can help ensure the entity accessing an account and the funds within is the true owner. By layering in this protection with other fraud defenses, businesses can be better prepared as consumer payment preferences shift. Additionally, financial institutions and other organizations should keep consumers informed about how to protect their own data and signs of scams. To learn more about how Experian is helping businesses develop and maintain effective fraud and identity solutions, visit us or request a call. And keep an eye out for additional in-depth explorations of our Future of Fraud Forecast. Request a call Future of Fraud Forecast

With used vehicle sales up 13% from 2020 to 2021, and auction volumes at historic lows, obtaining vehicles directly from consumers offers an opportunity for dealers to maintain a profitable sales pipeline. The key for dealers is to understand how their sales stack up against other local dealers — and more specifically, what types of vehicles those competitive dealers are selling. Dealers should take advantage of market visibility Experian’s marketing solution, the Automotive Intelligence Engine (AIE), offers dealers market visibility of pre-owned sales trends and recommends marketing strategies to help acquire used vehicle inventory. AIE provides specific strategies to help dealers acquire the most desired units and reach/resonate with consumers who are most likely to bring those units in on trade. Dealers can view: Who owns desirable vehicles the dealer would like to purchase Strategies to acquire and sell used units Sales trends such as segment, class, model, make and model Financing trends such as credit score, term, and lender Audience makeup: demographic and psychographic characteristics, who owns what type of vehicle, and where they live. By understanding the used owner, dealers can use messaging that resonates to help upsell them into a newer vehicle they desire—helping dealers stay competitive in today’s market. Dealers should also look at lending trends Exploring the world of used vehicle sales should also extend into lending trends. Since used vehicles are not included in OEM lending incentives, understanding trends helps dealers make more informed decisions. Used vehicles can qualify for special OEM sponsored CPO financing. With AIE, dealers have visibility into the amount financeable percentages, APR trends, terms, and tiers for lenders within their market. This benefits dealers to know which lenders are covering more significant percentages like 140% of NADA and what lenders are covering lower credit tiers. Knowing options on the lending side of the transaction empowers dealers to expand their financing options to work with lenders who facilitate lower credit scores or cover higher percentages. Learn how Experian’s Automotive Intelligence Engine can help you make more informed decisions about used car inventory acquisition. You may also be interested in reading more about audience segmentation and AIE in our blog, Data-Driven Audience Segmentation Empowers More Effective Omnichannel Marketing. 1US Used Car Market Finishes Strong in 2021: What's Up for 2022? | Nasdaq