New Study Reveals Distinct Patterns of Fraud Behavior Associated with Compromised Identities

Cross market, up-to-the minute transaction intelligence is critical to protecting consumers and enterprises

SAN DIEGO, Calif. – Sept. 30, 2015 – ID Analytics, LLC, a leader in consumer risk management, announced a new study from ID:A Labs that shows that timeliness of detection and diversity of data sources are critical factors in countering attempts to compromise consumer identities. Understanding fraud mobility, the pattern of how a fraudster uses an identity within and across industries, is one of the greatest challenges to fraud prevention and detection. The study described in ID Analytics’ white paper, “Fraud Mobility: Exploitation Patterns and Insights” tracked behavioral trends for both fraud victims, and non-compromised consumers based on an analysis of 68 million Social Security numbers of both victims and non-victims over the last five years.

Compromised Identities and Fraud Velocity

By studying the velocity of fraud activity for both compromised and non-compromised identities, ID Analytics observed that much like a stolen credit card, fraudsters exploit identities rapidly across multiple enterprises to monetize the identity before the consumer and businesses become aware of the compromise.

“Fraudsters strike fast and hard. Having access to up-to-the-minute transaction data from sources across industries is critical in detecting and preventing fraud activity,” said Scott Carter, CEO, ID Analytics. “Often, in-house solutions or vendor tools that rely on credit bureau or public records data will only detect the compromised identity after the confluence of fraud activity has occurred.”

Attempts to use the compromised identity were observed to be up to 7.5 times higher than for non-compromised identities in a very short period of time, with most of the application velocity occurring within a 24-48 hour period.  Additionally, the compromised identities initially tend to appear at multiple businesses within the same industry, but over a longer period these identities are seen moving industries, likely in an attempt to defeat traditional fraud detection tools. Findings indicate that a compromised identity remains at increased risk, long after the initial fraud. Criminals will assert previously compromised identities at a rate 3.4 times higher than their non-compromised peers.

Ken Meiser, ID Analytics’ VP of Identity Services previewed the study on October 29 at the 13th Annual ID Analytics Advisory Council in La Jolla, California.

For more information on the latest research in the area of fraud mobility and how businesses can protect themselves, download the complete white paper, “Fraud Mobility: Exploitation Patterns and Insights.”


About ID Analytics, LLC

ID Analytics is a leader in consumer risk management with patented analytics, proven expertise and up-to-the-minute visibility into consumer behavior. By combining proprietary data from the ID Network® — one of the nation’s largest networks of cross-industry consumer behavioral data—with advanced science, ID Analytics provides in-depth visibility into identity risk and creditworthiness. Every day, many of the largest U.S. companies and critical government agencies rely on ID Analytics to make risk-based decisions that enhance revenue, reduce fraud, drive cost savings and protect consumers. ID Analytics is a wholly-owned subsidiary of LifeLock, Inc. Please visit us at


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