» I See Fraud Rings

According to a new study by ID Analytics’ ID:A Labs, there are more than 10,000 identity fraud rings in the U.S. This study is the first to systematically find many thousands of identity fraud rings, which was accomplished by developing an algorithm capable of automating the process of examining the interconnections between identity fraudsters to uncover rings of organized activity.

» Child Identity Fraud Study

Minors’ identities are particularly appealing targets for fraudsters because their personal data is untainted, legitimate, less likely to be monitored for misuse, and few tools are available to protect children against attack. To provide greater insight into the scope of child identity fraud, ID Analytics conducted a study of more than 172,523 children enrolled in ID Analytics’ Consumer Notification Service at some point during the 12-month period.

» Address Discrepancy Data Study

Requesting a change of address on an account is a common tactic used by fraudsters to gain access to an account’s assets. Once the fraudulent address is in the system, the fraudster can then place orders for replacement credit cards, checks, passwords/PINs or new cell phones which will be mailed to the fraudulent address. Frauds linked to address changes are costing companies millions of dollars each year.

» Complying with the “Red Flag Rules” and “FACT Act Address Discrepancy Rules”

The Red Flag rules became effective on January 1, 2008; organizations must comply with the rules by November 1, 2008. The rules seek to protect lenders and consumers from the detrimental impact of identity fraud. Affected creditors are now required to design and implement procedures for detecting and preventing identity fraud at the point of account origination as well as during management of existing accounts.

» National Fraud Ring Analysis

To stem the growth of identity crimes, such as identity theft and fraud, consumer facing businesses have invested significant resources strengthening their fraud detection and verification technologies at the point-of-application. While there have been many inroads made, and most in the financial services industry will tell you that the growth of identity fraud is flattening, dollar losses attributable to organized fraud rings continue to grow. By using abundant information and technology resources, fraud rings continue to develop new tactics to avoid fraud defenses.

» Online Interactions Data Study Findings

For many businesses, the Internet has become a mainstream channel for customer acquisition, financial transactions, low-cost customer care, and delivery of sensitive information. While the convenience, personalization and speed of online interactions have resulted in mainstream consumer adoption, these same interactions have created new and unique challenges for businesses. One of these challenges is the validation of identity assertions made in an online or faceless transaction.