Socure Introduces First-Ever Dispute Abuse Score to Stop Serial Fraudsters Across Industries

Sigma First-Party Fraud Solution Detects Repeat Abusers at Scale with Unprecedented Visibility into Suspicious Activity Across the Financial and eCommerce Ecosystems

INCLINE VILLAGE, Nev., July 23, 2025 /PRNewswire/ -- Socure, the leading platform for digital identity verification, compliance, and fraud prevention in over 190 countries, today announced the launch of its Dispute Abuse Score, the industry's first risk model purpose-built to predict the likelihood that individuals will abuse dispute processes, including Reg-E policies. This solution enables organizations to proactively and post-transaction detect repeat abusers who exploit dispute processes across platforms, a form of first-party fraud that costs U.S. businesses tens of billions of dollars annually.

"Dispute and Reg-E abuse have historically been two of the hardest forms of first-party fraud to detect, with bad actors hiding behind clean or slightly manipulated identities to exploit consumer protections," said Johnny Ayers, CEO and Founder of Socure. "Socure's Dispute Abuse Score changes the power dynamic by providing fraud and review teams with mission critical intelligence that the industry has never had access to, until now."

This game-changing innovation demonstrates Socure's continued leadership in defining the future of first-party fraud detection and addressing the evolving tactics of bad actors. Unlike legacy fraud tools and inferior platforms that just can't keep up with the pace of fraudster innovation, this purpose-built model is fueled by Socure's proprietary First-Party Fraud Consortium and Identity Graph, analyzing dispute histories, account closures, payment denials, geolocation and device intelligence from over 350 million identities and nearly 30 billion transactions. This cross-industry visibility enables organizations to identify repeat abusers who would otherwise remain hidden when institutions operate in isolation.

This innovation further accentuates Socure's industry leadership role with RiskOS™ as the platform for every identity and risk decision, Socure's global and local ID graphs at the core of every differentiated insight and the market's best-performing products the Socure team has built its stalwart reputation on.

The Dispute Abuse Score delivers predictive risk assessments and supporting intelligence at onboarding, transaction, or dispute resolution, empowering risk teams to:

• Auto-approve low-risk disputes to reduce investigation backlog
• Reject high-risk transactions to prevent losses
• Deter bad actors and gather compelling evidence for First-Party trust by requiring additional verification (DocV, one-time passcode, employment verification, bank statement, additional documents, etc.)
• Adjust funds availability or hold times for high-risk users
• Feed investigation outcomes and dispute risk data into internal models for continuous optimization

"Socure's new Dispute Abuse Score represents exactly the kind of innovative, data-driven solution our industry needs to stay ahead of repeat abusers who exploit consumer protection mechanisms," said Mandy Goettelman, Chief of Staff at Green Dot Corporation. "As a founding member of Socure's First-Party Fraud Consortium, Green Dot understands the critical importance of industry collaboration in combating these sophisticated fraud schemes. This tool will help us better protect our customers while ensuring legitimate disputes are processed efficiently, ultimately creating a safer and more trustworthy financial ecosystem for all."

Dispute abuse, known as Reg E abuse in the debit world, has emerged as a critical threat across industries. Recent proprietary research from Socure reveals the scope of this challenge:

• Approximately 40% of all consumers had at least one disputed transaction within the last 24 months
• 15% of consumers who disputed a transaction have done so at two or more institutions within a 12-month period
• Consumers who have disputed transactions at two or more institutions are five times more likely to be labeled as 'abusers'
• Gen Z consumers make up 23% and Millennials 49% of all consumers with disputes, with 79% of Gen Z shoppers disputing payment charges in 2024

"Socure's new solution underscores its unique position in First Party Fraud," said Jim Mortensen, Strategic Advisor at Datos Insights' Fraud & AML Practice. "It delivers real-time intelligence to give financial institutions an edge in spotting high-risk behaviors to transform how they manage trust, friction, and fraud prevention throughout the customer lifecycle."

Built on insights from Socure's cross-industry consortium, Sigma First-Party Fraud goes beyond traditional tools by identifying serial abusers through risk signals that span across sectors, including e-commerce, gig work, and gaming, where it manifests under terms like "buyer's remorse" or "bettor's remorse." The Dispute Abuse Score marks the second major model released under Socure's Sigma First-Party Fraud solution, following the Identity Manipulation Score launched in March 2025.

About Socure
Socure is the leading platform for digital identity verification and fraud prevention solutions, trusted by the largest enterprises and government agencies to build trust and mitigate risk. Leveraging AI and machine learning, Socure's industry-leading platform achieves the highest accuracy, automation, and capture rates in the industry. With the acquisition of Effectiv, Socure has launched its RiskOS™ platform to offer end-to-end decisioning and orchestration for identity fraud and payment risk management, integrating advanced transaction monitoring, credit underwriting and know-your-business (KYB) solutions into its platform.

Serving more than 3,000 customers and 190+ countries across financial services, government, gaming, healthcare, telecom, and e-commerce, Socure's customer base includes 18 of the top 20 banks, the largest HR payroll providers, the largest sportsbook operators, 58 organizations across the public sector, and more than 600 fintechs. Leading organizations including Capital One, Uber, Angi, Citi, Chime, SoFi, Green Dot, Robinhood, Dave, Gusto, Poshmark, DraftKings, PrizePicks, the State of California and many more trust Socure to deliver certainty in identity across onboarding, authentication, payments, account changes, and regulatory compliance. Learn more at www.socure.com.

SOURCE Socure