SingleSource protocol for decentralised risk scoring & fraud prevention

Posted by Jeremy Ullrich on 5/31/18 3:58 PM
Jeremy Ullrich
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SingleSource protocol for decentralised risk scoring and fraud prevention

For organisations, fraud is an issue that is estimated to account on average for a 5% loss of revenue in a given year. Despite advancements in software development and predictive analytics, the ability to truly detect and prevent fraud is limited due to the inability to share information across organisations.

To combat fraud, a 'neutral' third party needs to provide a secure and scalable platform that helps to identify fraudulent activity across organisations, while protecting the identity and information provided.

This is where the SingleSource solution comes in. SingleSource's fraud risk scoring platform and global data exchange protocol on the blockchain generates, stores and exchanges risk score data in a decentralised manner. This in turn eliminates fraud on a global scale, and enables good customer behaviour to be rewarded.

To read more about SingleSource's protocols, download the free white paper here.

The individual is given control on what, how much and when to share information relevant to their risk score. They in turn provide an unchangeable record of the data used to generate the risk score, and enable organisations to jointly contribute fraud data and customer transaction history without breaching the privacy of the user.

The capability to provide a trusted mechanism for exchanging risk information without compromising the privacy of customer data is critical to creating a successful global fraud platform.

How does SingleSource work?

Shared industry data (externally sourced)

Along with data provided by the individual, additional customer data is acquired through the data exchange ecosystems (described further here) which enhances the data used for fraud and risk scoring. Data partners participating on the SingleSource ecosystem will be screened to ensure that they can provide reliable data that benefits the ecosystem. Data can then be on-boarded via the API.

Fraud Intelligence Engine (FIE)

Industry data and other data sent to the SingleSource Platform is continually being analysed and profiled by the FIE. This uses advanced graph technology and fraud profile algorithms to connect various data points in real-time, to enable a holistic assessment of a customer’s fraud risk.

SingleSource Risk Score

The SingleSource Risk Score is used by the receiving institution (e.g. insurance company, telco) as part of their decisioning process in relation to the service request. The SingleSource Risk Score is a dynamic score and evolves based on the input data from external sources.

Claiming a Risk Score can be user initiated by signing-up directly with SingleSource, or service organisation initiated when an individual applies for services that require a risk/fraud check. However control over the data is always in the hands on the individual, and information is verified by SingleSource against data held on the blockchain or with traditional institutions. Information that can be viewed includes:

  • bill payment history
  • insurance claims history
  • blacklist status
  • sanctions status
  • KYC

Vetted institutions will hash the inputted data using their public key to ensure full traceability of the data source, which is then held on the blockchain for transparency. SingleSource receives the data file, confirms the source of the data file, and unlocks the hashed data to generate a SingleSource Risk Score. A smart contract is triggered and the institution receives a reward for contributing data.

A result stack is generated from the profiles run against the service request. The risk scoring engine analyses the result stack to generate a SingleSource Risk Score, which is then hashed and published on the ledger along with the fraud profiles triggered and data sources used. Validation of the hash can occur without exposing the actual customer details.

Certitude Tokens

The CERTI (Certitude) Token ecosystem operates on an earn and spend model, which is managed by the SingleSource Foundation. The CERTI Token is the currency for the SingleSource ecosystem.

CERTI Tokens have a utility value (i.e. similar to a postage stamp) which can be redeemed for services or traded on an exchange in various markets. The various markets include:

  • KYC - SingleSource Know Your Customer (KYC) is our core launch product. It enables organisations to screen both traditional and cryptocurrency customers at a global level.
  • Risk Scoring - The SingleSource risk scoring market is core to the CERTI Token ecosystem, as data collected and connected through SingleSource is used to drive various use cases later. SingleSource Risk Score serves the needs of current service institutions (banks, insurance, telco, utilities, etc.), and is designed to disrupt traditional risk scoring and credit checking services.
  • Data Exchange -Initially, the data exchange market is an extension of the Risk Scoring Market, which enables service organisations to share useful data (fraud blacklists, property data, claims history, payment defaults, etc) with SingleSource to seed the ecosystem and be compensated for that data.

Future markets may be developed by SingleSource or third parties using the SingleSource protocol and CERTI Token ecosystem. You can discover more potential concepts in the full white paper, or find out more detailed information about SingleSource by contacting us.

Download the full whitepaper here

Topics: News, Fraud prevention

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