Fraud Defense – Layered Security and Identity Intelligence


We have seen over and over that the foundation of identity security and fraud prevention is knowing who really has access to your critical or sensitive systems. Over the past few years, security and identity management analysts have been cautioning about the need for layered defenses against fraud. In particular, experts are calling for a risk-based approach that can ramp up security under more suspicious or threatening scenarios while continually providing multiple lines of defense against fraud.

Fraud mitigation solutions help diminish the use of invented identities based on invented or combined identity elements – for example, a stolen SSN linked to a new name and address. Fraud mitigation is centered on the concept of stopping fraud before it happens early in the registration process. It analyzes and rates the likelihood of fraud based on a careful review of the data given. For example, recognizing multiple uses of the same name or address and checking for data that has been reported as belonging to a deceased person.

While protecting against fraud and data loss, businesses still need to offer an improved online end user experience and reduce intrusive authentication methods that frustrate users and cause them to move to other channels or worse, to other businesses.

A layered fraud mitigation and identity intelligence system allows for the most judicious use of more intrusive authentication methods.  The first layer starts with “silent” authentications such as velocity and pattern detection across broad networks detecting suspicious patterns that otherwise would go unnoticed within any single institution. This network detection, combined with validation of the components of an individual’s identity, help to segment trustworthy customers from suspicious behavior – this limits customer friction while still effectively keeping out synthetic identities.