San Diego Business Journal

Study Holds a Mirror Up to Identity Fraud

Friday, November 30, 2012

ID Analytics, a San Diego maker of analytics software used in risk management, said in a recent report the number of identity fraud rings operating in the United States is more than 10,000.

The firm said its study of the problem is the first in the nation to investigate the interconnections of identity manipulators and fraudsters to identify rings of criminals.

While many of the fraud rings are composed of two or three criminals, many others are made up of family members or groups of friends, the report said.

The ID Analytics study examined more than 1 billion applications for bankcards, wireless services and retail credit cards and found identity fraud rings attacking all three industries, with wireless carriers suffering from the most fraudulent activity.

Two big hotbeds for recent fraudulent activity were Georgia and South Carolina, while other states with a greater degree of fraud rings included Alabama, Delaware, Mississippi and Texas.

Two bankcard fraud rings in Florida each filed more than 200 applications, the report said.

Stephen Coggeshall, ID Analytics’ chief technology officer, said the information assembled in the latest report enabled the firm to build new variables into its fraud models so it can help its customers make better decisions and protect their customers.

— SDBJ Staff Report