Loading...

Velocity checks can help prevent identity theft

Published: December 14, 2010 by Guest Contributor

By: Ken Pruett

The majority of the customers I meet with use some sort of Velocity Checks to assist with their Fraud and Compliance process. However, there are still quite a few that do not, especially when opening up New Business Accounts.

Historical data checks have proven to be an effective form of identity theft prevention for both Consumer fraud and Commercial Fraud. We see scenarios where a perpetrator will have one successful penetration of a business and opens up a fraudulent account.  They then try and replicate this against the same business. All of the information may be different, with the exception of one element, often the phone number. Without velocity checks, this may not be identified at the time the account is being opened.

More sophisticated rings try to be more creative in their fraudulent attempts. They may gain access to a consumers information and then go and apply at a variety of entities. They are more careful, so they never attempt to target the same business twice. They are aware that many companies have velocity checks, so they do not want to take a chance of having their information questioned.

At a minimum, the use of in-house velocity checks should be a standard process for you fraud detection measures. Typical data elements to check against are; name (business or consumer), address, phone number, and Social Security Number.

A fraud best practice would be to use a tool that provides velocity checks and incorporates the information into a fraud prevention tool. There are tools that provide checks across multiple businesses and this typically provides the best level of protection. By looking at inquiry information across multiple businesses, you are able to help prevent being a victim of some of the more sophisticated rings.

Don’t find yourself being the easiest target. Once you get hit, it could snowball and you may be victimized multiple times. We all know there is no way to stop all of the fraud, but let’s not make it too easy on the perpetrators. Try and find a way to use some sort of velocity checks in your process to at least minimize your fraud risk.

Related Posts

...

Published: June 6, 2023 by admin

According to Experian data analysis and a recent study on unemployment insurance fraud, at least 25% of new claims are a result of identity theft.

Published: April 15, 2021 by Eric Thompson

It’s critical for credit unions to understand the specific threats presented by life online and be prepared with a fraud detection and prevention plan

Published: April 13, 2021 by Alison Kray

Subscription title for insights blog

Description for the insights blog here

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Categories title

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.

Subscription title 2

Description here
Subscribe Now

Text legacy

Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words, consectetur, from a Lorem Ipsum passage, and going through the cites of the word in classical literature, discovered the undoubtable source.

recent post

Learn More Image