Fraud Rings in Action Video

October 13, 2015
By Ken Meiser

One of the things I love about my job is the opportunity I have to work with incredibly smart people and address real-world problems. This video from ID:A Labs is a great example of how contributory ID Network® insight and great data science can help stop fraudsters from victimizing consumers and enterprises. Over the past few years, ID:A Labs has been researching rings of organized fraud. In our new Fraud Rings in Action video you can see an example of this recent ID:A Labs research at work. This ability to recognize subtle patterns of fraudulent behavior and highlight them in our tools contributes to both the detection of bogus applications and provides enterprises with tools allowing them to tailor their remediation practices to reflect specific threat vectors.

In the attached video, you see three examples of how detection of ring behavior takes place. The video tracks the appearance of a social security number on applications associated with multiple names and addresses within a geographic area. We see the same social security number (SSN) being asserted on multiple applications from different addresses. In the video, the number represents the volume of fraudulent applications received from that address and the lines connect addresses associated with fraudulent applications all sharing the same SSN. Understanding these patterns allows the team to build algorithms to detect this fraud at the time of application, allowing ID Network members to take action to protect themselves and their customers.

The video also demonstrates the up-to the minute nature of the network visibility. As more and more applications are received, the network opinion of the behavior changes and the increased risk scores (reflected by orange and red dots) provide a warning that the application needs additional review. Associating these risky transactions against other application details such as address or phone assists us in identifying potential geographic hotspots for fraud ring activity in the U.S.

ID:A Labs is designed to allow our scientists and engineers to propose and conduct self-directed research and development. We’ve long recognized that good ideas can come from anywhere and that ID:A Labs is an integral part of how we grow and improve our business. If you are a client or are considering becoming a client, we encourage you to come out and visit the ID:A Lab and hear more about our research. For more details on ID:A Labs research into fraud rings’ download our white paper, I See Fraud Rings.


Ken Meiser is Vice President of Identity Solutions.