New network applies technology to facilitate unprecedented and automatic collaboration between investigators across the country to keep fraud out of the banking system
Organized fraud rings are growing more sophisticated, sharing technology, data and insights designed to defraud financial institutions. And now – on the heels of FinCEN encouraging banks and credit unions to share information about financial crimes – a nationwide network of fraud investigators is working together to stop organized fraud for the first time(ID Insight).
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ID Insight, a Minneapolis-based national leader in developing solutions to prevent account takeover and new-account fraud, announced today that it is applying its award-winning fraud-mitigation technology to launch the Fraud Investigation Network SM, creating the unprecedented level of industry collaboration needed to detect and shut down fraud rings and schemes that target financial institutions.
The Fraud Investigation Network expands upon ID Insight’s fraud intelligence platform utilized by thousands of financial institutions across the country. For more than 15 years, banks and credit unions have improved their fraud detection by leveraging ID Insight solutions with a built-in velocity network that captures the repeated submission of identity attributes across participating institutions nationwide.
With this new level of collaboration, fraud investigators nationwide will now easily and automatically benefit from the investigative efforts and insights of their industry peers as they fight together to stop sophisticated fraud rings and schemes related to account takeover and new-account fraud. For the first time, available investigation insights around suspicious behavior from other institutions in the network are automatically shared in real-time as alerts and messages to the entire network, bringing added authority to every inquiry result.
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The launch of the Fraud Investigation Network comes just days after FinCEN, the Financial Crimes Enforcement Network at the United States Department of the Treasury, released clarifying information that encourages banks to share information about financial crimes. At the annual American Bankers Association/American Bar Association Financial Crimes Enforcement Conference in mid-December, FinCEN Director Kenneth A. Blanco announced that a provision of the USA Patriot Act allows banks to share more financial crime data among themselves.
According to ID Insight Co-Founder and President Adam Elliott, because completed investigations can be marked in one of two ways, either “fraud” or “not fraud,” it is possible to convert investigation results into a simple, binary variable – a 1 or a 0. “Each 1 or 0 packs an incredible predictive punch,” Elliott says. “Because our fraud intelligence platform already captures and codifies how investigations are ultimately resolved, all participating banks will benefit when these warning signals are provided back to other investigators in the network.”
