There’s good news and bad news when it comes to fraud and the growth in technology. The bad news is that fraudsters have easier access to the consumer data they need to build synthetic IDs. The good news is thanks to technology, telecommunications pay TV and utility companies are better armed mitigate losses by detecting behavioral patterns early in the process.
However, the technology used to fight fraud is only as good as the data and analytics behind it. Here are five ways data, analytics, and technology can help you not only prevent fraud, but also prevail.
Data is essential. Not just the volume of data but the breadth of data resources such as payroll information, utility records, and government-issued IDs. How frequently an applicant appears across different data sets can result in more informed identity-verification decisions. When a person has a phone, electric bill and payroll account, the identity is more likely to be real as a fraudster usually doesn’t make the effort to establish a wide track record.
Velocity is the frequency that data attributes or relationships occur over a period of time. For instance, the program could be set to flag three or more inquiries on a single name over one week. By using velocity, detection tools can flag unusual activity and score the applications for fraud risk.
Monitoring suspicious activity in real time is crucial to minimizing losses. The latest detection tools offer alerts that can appear in seconds or in batches at specified intervals. These solutions continuously refresh data assets with confirmed fraud reports, proprietary alerts, and daily inquiries.
In the fight against synthetic IDs, too many false-positive results can hurt efficiency, increase operational costs, and frustrate legitimate consumers that want to establish cable television or electrical service. Keying technology can consolidate records from hundreds of millions of consumers by assigning unique identifiers or “keys” to each person. This helps to reduce the chance that consumers with information in common will be mixed up.
Finally, one size doesn’t fit all when fighting fraud. Every industry has its own unique verification needs. For instance, as the telecommunications industry becomes a more popular target for organized fraud groups, utility billing and collections information can help capture fraudulent applications.
Now that you’ve thought about these five areas, here’s a short quiz to help you assess your fraud-detection methods and learn more about minimizing risk, improving efficiency, and meeting customer demand for fast secure service.