Webinar Training

Finding a Fraud "Needle" in a Haystack of Applications

Finding a Fraud "Needle" in a Haystack of Applications

Archived
60 Minutes
Available OnDemand for Premium Members

Identity Fraud is a significant problem for financial institutions, costing billions of dollars in losses. Fraud prevention efforts can reduce losses, but often interfere with the smooth servicing of legitimate customers. Moreover, determined fraudsters have defeated many of the fraud prevention mechanisms employed over the past decades.

This session will focus on the latest advances in electronic identity fraud detection, and the development of a method to identify different types of fraud based on the unique data characteristics of each type. The approach is analytic and the discussion is focused on developing solutions to detect synthetic identities, stolen identities, manipulated identities, vulnerable victims, friendly fraud and suspicious identity activity.

The following topics will be discussed:

  • How a paradigm shift in thinking about fraud as an account event rather than as a fraudulent identity can expose new tools for use in fraud detection
  • Identity verification is a critical tool in fraud detection
  • Different fraud schemes, comprehensive detection mechanisms and investigations

Background

Identity fraud is unrelenting and it's affecting both Financial Institutions and consumers alike. In fact, according to the Javelin Strategy & Research's 2012 Identity Fraud Report, Fraud incidence rate in 2011 increased 12.6% resulting in 11.6 million total fraud victims. Identity fraud losses were estimated at $18 billion.

Identity fraud takes various forms:

  • Stolen Identity - what happens when an innocent victim has their identity or their credit account taken over?
  • Synthetic Identity - fraudsters attempt to open accounts using fictitious or manufactured identities
  • Manipulated Identity - suspicious identity behavior, perhaps intentional, where an individual has multiple name spellings, assorted apartment numbers, several social security numbers
  • Vulnerable Victim - the very young and the elderly are sometimes at greater risk of having their identity misused
  • Friendly Fraud - an added twist, sometimes the victim is known by the fraudster, perhaps a family member

Knowing the various types of identity fraud is just the first, but very important step, that fraud professionals can take to help meet the challenges in detecting identity fraud. The next step is understanding the latest identity fraud prevention efforts that can help your organization reduce losses while keeping the customer experience positive.

This webinar will focus on the latest advances in electronic identity fraud detection, and the development of a method to identify different types of fraud based on the unique data characteristics of each type. The approach is analytic and the discussion is focused on developing solutions to detect synthetic identities, stolen identities, manipulated identities, vulnerable victims, friendly fraud and suspicious identity activity.

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