We were just at the Government Big Data and BI Summit where we presented on applying fraud lessons from the financial sector to agency program integrity and using big data to improve identity intelligence.
Trends in fraud management in the commercial sector have evolved as fraudsters have become more sophisticated about hiding under a stolen or made-up identity. Public sector agencies can learn from that experience to move beyond chasing after the fact to preventing fraud before it happens.
Combating identity-based fraud on an agency scale can be challenging. Identity intelligence must incorporate both fraud mitigation (data integrity) and identity verification (proving that the applicants are who they say they are).
Here are a few points from the presentation:
- Big data can be overwhelming. Without a structured “backbone” to organize the data, it is just noise. Linking unstructured data to structured, known data points allows you to use many additional facts to properly identify users and transactions.
- Analytics propel and support the processes that control identity verification and data integrity – through the use of data driven procedures that enable better decisions to be made. Focus on prevention measures, including identity proofing that uses a broad range of data elements to verify the applicant’s identity.
- Know when to use more extensive authentication. Segmenting the population of users is a crucial part. You have to analytically approach your strategy and take the right steps for good identity fraud management.
- Move beyond regulatory compliance in my handling of potential fraud. Meeting regulatory requirements is essential. To minimize fraud and improve user experience, more is usually required.
- While raw data is valuable, how well you link and analyze the data is where the real value resides. Linking and analytics are core competencies needed for accurate identity verification and fraud prevention.
- Information and insights both inside and outside of your internal shop are invaluable. An identity has an existence outside of what you see within your own data and that existence can yield highly useful clues and insights.
- Data accuracy affects quality of results. The degree to which data is inaccurate or incomplete or is incorrectly associated to the wrong identity can be a big deal and can skew result accuracy.
- Multiple, corroborating data points reveal the true identity. A three dimensional view of an identity is much more trustworthy than a monocular view.
For more information about applying these solutions in your agency, contact one of our specialists.