International companies, particularly those in the financial services markets, have long struggled to comply with the varying data privacy laws of the countries in which they operate. Simple data analysis practices in one region of the world may or may not be acceptable in another, and the penalties of non-compliance can be harsh to say the least. This leads to inefficiencies in areas such as AML, Compliance and Fraud Investigation.
For most companies, the data to identify and catch fraudsters already exists within the organization; however, because data is distributed across various data silos in different countries, resolving identities and non-obvious relationships requires rapidly accessing multiple data sources with different structures and access methods.
Consider then the requirement to comply with data privacy laws, which make it essential that the analyst returns only the calculated probability of a match in a foreign database, instead of the actual data associated with that match. Businesses have spent massive amounts of money trying to tip-toe through the minefield of privacy laws and acceptable practices. Determining “who’s who” and “who’s working with whom” has proven difficult where data privacy laws prohibit individual analysts from ‘seeing’ the results of a search into a database in another country.
Infoglide’s Identity Resolution Engine is uniquely capable of solving these requirements by searching into disparate data – irrespective of where it resides – and returning only the percentage likelihood that a match or relationship was found. The software then returns contact information of the appropriate data steward, if desired.
Taking the weight of data privacy concerns off analysts increases productivity and helps them focus on the cases that truly matter to your organization. For more information, contact sales@infoglide.com.
“A recent article in Bank Systems & Technology says that financial services institutions are discovering increasingly sophisticated attempts to defraud their customers – more sophisticated in how they gather information and employ it in their criminal schemes. ‘As fraudsters increasingly seek to exploit weaknesses in consumers’ defenses through social engineering schemes rather than hack vulnerabilities in banks’ security systems, the need for enterprisewide solutions to detect fraud across channels is greater than ever.’”
“Buying rather than building speeds up the process of filling gaps in (or simply improving) functionality, and so is a logical step, and Experian itself has plenty of acquisition experience (including of course QAS itself). It opens up the intriguing possibility that Experian QAS may be looking in the future to spread its wings beyond its historically tight market of contact data management. If so then this may not be the last acquisition that it makes.”
“Effective November 1, 2010, if you do not accurately provide the TSA with your full legal name as it appears on your government issued identification within 72 hours of a flight, your reservation could be canceled, at will, by the Transportation Security Administration (TSA). Why are they doing this? To enhance the security of commercial air travel, the TSA has developed Secure Flight, a program that compares airline passenger information against U.S. government watch lists.”
“‘You need the ability to migrate data from one cloud service provider to another, and there are cloud interoperability scenarios that need to be addressed as well,’ notes Matt Edwards, director of the cloud services initiative at TM Forum, a communications industry association. ‘There are multiple things that need to be addressed to avoid vendor lock-in and to remove the barriers for the adoption of cloud services.’”
By Mike Betron, Infoglide Software Director of Marketing
A recent article in Bank Systems & Technology says that financial services institutions are discovering increasingly sophisticated attempts to defraud their customers – more sophisticated in how they gather information and employ it in their criminal schemes. “As fraudsters increasingly seek to exploit weaknesses in consumers’ defenses through social engineering schemes rather than hack vulnerabilities in banks’ security systems, the need for enterprisewide solutions to detect fraud across channels is greater than ever.”
The sources of information about individual consumers are rapidly growing and increasingly accessible. Most of us concerned about our personal information think first about that portion of the World Wide Web that is indexable by conventional search engines, sometimes called the “surface web.” That information is more easily monitored and managed than social media sites (e.g. Facebook) and other dark web sources such as local, state, and government databases.
What is needed is a comprehensive picture of our personal online reputation, but it’s not a simple task. It requires the ability to tie together diverse data from a multitude of sources in a variety of formats. Using similarity searching, advanced filtering, and sophisticated scoring, federated searching across disparate data sources can produce a unified view of an individual’s “identity” for ongoing monitoring. Ideally, that unified identity can be refreshed using automated rather than manual processes.
Identity resolution offers the ideal core technology for any solution designed to present a unified picture of personal identity across surface web, dark web, and social media sources. Since identity resolution engines are designed to incorporate new data sources without requiring system rewrites, they offer the best hope for deployment of extensible systems for online identity management.
“On the heels of the very successful Association of Certified Fraud Examiners (ACFE) conference last month comes an industry event which represents investigators of financial crimes and fraud. The International Association of Financial Crimes Investigators (IAFCI) meets in Washington, DC next week with an agenda that is chock full of sessions involving discussions of best practices for solving and preventing financial crimes.”
“In a recent report, Light noted that the key to successful fraud mitigation with technology is applying a combination of several methods - including the typical red flag approach, predictive modeling, neural networks, profiling, claims databases and identity matching - to ‘maximize the identification of true positive fraudulent claims and of true negative fraudulent claims.’”
“Robert Riegle from the Department of Homeland Security describes fusion centers as force multipliers. ‘They leverage financial resources and the expertise of numerous public safety partners to increase information awareness and help our law enforcement agencies more effectively protect our communities.’”
“L&I works extensively with state and federal law enforcement, and other regulatory agencies to detect and prosecute individuals committing workers’ comp fraud, contractors failing to register with the state, and businesses that wrongly classify workers to cheat on insurance premiums. Some investigations lead to criminal prosecution. People tend to think fraud only involves workers cheating the workers’ comp system. But in reality, millions of dollars are lost when employers, medical providers and contractors commit fraud.”
“At the national level, the number of potential fraud cases continued to rise throughout the first half of the year. Figures released last week by the Illinois-based National Insurance Crime Bureau show a 14 percent increase in questionable claims of the year in four of the six categories the agency tracks… Nationally, reported incidences of suspected organized insurance fraud cases grew 65 percent to 1,837 cases during the first six months of 2010 compared to the same period in 2008, according to the National Insurance Crime Bureau.”
“The initiative makes Maryland among the first nationally to establish a statewide network for data generated from license-plate readers. While the devices have not endured regular scrutiny and occasional opposition the way public surveillance cameras have historically, the technology in many respects is more powerful. Privacy advocates warn that plate recognition enables police to document where drivers go – both guilty car thieves and innocent citizens alike – by registering their GPS locations when each license plate is scanned. Police need reasonable suspicion that a crime has been or will be committed for much of the contact officers have with the public, at least in theory. But laws that restrict data gathering by law enforcement don’t always keep up with the 21st century.”
“American authorities are investigating the U.S. division of global banking group HSBC over its compliance with anti-money laundering procedures, according to a regulatory filing… ‘These examinations and inquiries pertain to, among other matters, our global banknotes business and our foreign correspondent banking business, and our compliance with the Bank Secrecy Act, Anti-Money Laundering and Office of Foreign Assets Control requirements,’ the filing said.”
“Wachovia admitted it didn’t do enough to spot illicit funds in handling $378.4 billion for Mexican-currency-exchange houses from 2004 to 2007. That’s the largest violation of the Bank Secrecy Act, an anti-money-laundering law, in U.S. history — a sum equal to one-third of Mexico’s current gross domestic product.”
“The identification of the patient is not always accurate in healthcare. Information for one individual may exist in one or multiple databases where it resides as ‘duplicate,’ inaccessible or unknown to those needing to see the complete or most current picture. Due to administrative errors, information on two different individuals can be ‘overlaid’ and presented as one person’s record. Linking the wrong clinical information to a person not only can cause great personal harm to the patient, but also can incur huge costs to the healthcare provider in correcting and mitigating the error.”
“‘By working with our partners across the globe, we have achieved historic advances in international aviation security – including bolstering explosives detection, strengthening the vetting of passengers against terrorist watchlists, refining passenger screening techniques and deploying tens of thousands of trained aviation security personnel—that make air travel safer for everyone.’ Among other things, the report showed that aviation security received a large boost with the implementation of Secure Flight for 100 percent of passengers flying domestically and internationally on U.S. airlines.”
“The Donaghey College of Engineering and Information Technology at the University of Arkansas at Little Rock (UALR) will host the 15th International Conference on Information Quality (ICIQ) on November 12-14, 2010. The ICIQ attracts researchers and practitioners in the academic, public and private sectors from across the globe.”
If you’re involved in fraud detection, then you’re probably aware of ACFE, the Association of Certified Fraud Examiners. With over 50,000 members, it’s the largest single fraud anti-fraud organization in the world. ACFE is also the publisher of FRAUD magazine.
The conference is geared to address the challenges faced by anti-fraud professionals, featuring top-level educational sessions and providing a great forum for participants to network with colleagues. Join us in Washington, D.C. and experience for yourself why this is the most important event for anti-fraud professionals.
If you would like to schedule some time to meet with Infoglide representatives, please contact us at sales@infoglide.com.
“Crown prosecutors said they will likely be able to collect about $6.1-million, about $450,000 less than what Mr. Malik owes from the original winnings, including interest. That money will be returned to the Ontario Lottery and Gaming Corp., which paid the money to the real winners, plus interest, when it discovered Mr. Malik’s fraud.”
“ICE’s experience in trade-based money laundering investigations has shown that one of the most effective ways to identify instances and patterns of trade-based money laundering is through the exchange and subsequent analysis of trade data for anomalies that would only be apparent by examining both sides of a trade transaction.”
“McClain heads up Contractor Compliance for the agency and has just 27 inspectors to cover the state. The agency registers 55,000 contractors each year, so reigning in folks like Mulinski is a difficult task. ‘Finding them working on a job site is a real challenge,’ he said. Once we find them there, knowing that they are registered, who are employees and who are workers?’”
“In the last few posts, we reviewed the basic architectures used to implement entity resolution (ER) systems. Although this gives us the big picture at the systems level, ER really takes place at the reference (record) level where the system must ultimately decide whether two references are for the same or for different real-world objects, i.e. to link or not to link. In this series I’ll discuss some of the most common methods for making these linking decisions.”
“NYAAIF noted that the New York-based Insurance Information Institute reported that fraud and abuse in the New York no-fault system accounts for roughly 20 percent of every no-fault claim paid—or about $1,561 per claim. Spread across the state, that amounted to nearly $230 million in ‘fraud taxes’ in 2009, according to the Alliance.”
Three states (Wyoming, Nevada and Delaware) do not require any proof of identification to set up a business. Another 26 states allow a limited liability corporation (LLC) to be set up without showing beneficial ownership. ‘When banks try to cross-reference within their own business customers, they’ll find the connection,’ she says. ‘But when they distribute it across several banks, it’s not clearly visible. It’s hard to do pattern relationships because banks don’t compare notes, so that’s how [the fraudsters] dilute and avoid detection.’”
“The Secure Flightwatch-list matching process occurs before a passenger even gets to the airport so if you get a boarding pass, the Secure Flight matching process is done. In other words, you are clear once you get that pass.”
“During 2010, independent/standalone data quality vendors (Clavis, Pitney Bowes, Human Inference and Trillium) will focus on name and address cleansing as they struggle against better-funded match/merge and data profiling capabilities increasingly integrated with megavendor MDM. Also at this time, a dearth of non-aligned matching algorithms (such as those from Digital Trowel, Infoglide, Omikron and Uniserve) will engender ‘algorithm envy’ among disenfranchised MDM providers.”
“Rockland County Legislator Ed Day, R-New City, has called for a review of Medicaid spending by the county that would also determine whether enough is being done to prevent and detect Medicaid fraud. ‘Medicaid expenditures represent an amount that is 110 percent of all the property taxes collected here in Rockland,’ said Day.”
“The most significant area of concern is organized crime. Canadian Security Intelligence Service estimates that there are about 750 organized crime groups operating in Canada and 80% of them are involved in the illicit drug trade. The cross-border movement of currency was identified as a continued concern.”
Infoglide Software provides entity resolution and analysis solutions for retail, banking, insurance, government, and law enforcement. Without the need for data cleansing or warehousing, Infoglide Software's Identity Resolution Engine™ (IRE) analyzes all of the information relating to individuals and/or entities from multiple sources of data and then applies...
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