New System Can Identify Thousands of Fraud Rings and Aid in Prevention of Future Identity Fraud
ID Analytics®, LLC announced the U.S. Patent and Trademark Office granted the issuance of U.S. Patent Number 9,280,658 for the company’s system and method for the systematic detection of fraud rings.
This patent recognizes ID Analytics’ unique method for identifying groups of interconnected fraudsters. The detection of fraud rings can help to prevent future fraud and aid law enforcement in criminal investigations.
A study conducted by ID Analytics in 2012 found there are more than 10,000 identity fraud rings in the U.S. Identity fraud occurs when a person intentionally uses false personal identifying information (PII) such as names, address and Social Security Numbers, to improperly obtain goods and services. A fraud ring is an organized group of two or more people who collaborate to commit identity fraud. These people may engage in a variety of fraudulent behaviors including forgery, filing false claims, identity stealing, identity manipulation and counterfeiting checks or currencies, among others. Working together, these groups of individuals are able to make more money, better elude detection, aid one another with logistics and carry out more diverse strategies for committing fraud.
The patent covers a technique for the detection of rings of identity fraud by gathering a group of likely fraudsters and looking for interconnections. When these interconnections are strong, there are likely fraud rings. The system harnesses the power of ID Analytics’ ID Network®, one of the nation’s largest networks of cross-industry consumer behavioral data.
“This automated approach to detecting fraud rings is an important milestone in understanding and mitigating identity fraud. Rather than performing manual spot checks and poring through vast amounts of data, with limited effectiveness, this system enables us to efficiently identify thousands of fraud rings,” said Dr. Stephen Coggeshall, chief analytics and science officer, ID Analytics. “The addition of this patent enhances our portfolio of patents for fraud detection and is a testament to the unique effectiveness of the ID Network.”