Outfoxing I.D. Thieves - InformationWeek
02:07 PM
Building Security for the IoT
Nov 09, 2017
In this webcast, experts discuss the most effective approaches to securing Internet-enabled system ...Read More>>

Outfoxing I.D. Thieves

Startup aims to stop fraud before it starts

Identity theft and associated fraud is costly to financial organizations as well as consumers. Market-research firm Financial Insights says such theft will cost financial institutions $4.2 billion this year and likely reach $8 billion by 2006. Startup ID Analytics Inc. says it has found a way to thwart thieves at their point of entry: the credit application.

chartID Analytics has studied more than 200 million credit applications from credit-card issuers, banks, and other sources, 10 million of which are suspected or known to be fraudulent. Using that data, the company has developed pattern-recognition technology that looks for dozens of fraudulent patterns in an application. "We can see trends no company would be able to see looking [only] at their own data," says CEO Bruce Hansen. A bank approving a checking account may not know that a thief used the same Social Security number to start three retail charge cards and establish a new residence just prior to applying for the account.

Applications from customers such as Citibank and Diners' Club get vetted against the vendor's database and given a score that ranks the likelihood that it's fraudulent. "I can say it works," says an executive at a large financial-services company, "and it's working better than our initial expectations."

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of IT Report
In today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll