Veda to fight identity fraud

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Australians lose around $1.4 billion to personal fraud each year and identity crime is one of the fastest-growing forms of fraud in the world.

Research by data analytics company Veda Group shows 41% of people would not know if their identity had been stolen. There has been a 72% increase in the number of identity takeovers in the last year and a 194% increase in the past five years.

To combat this, Veda has launched Knowledge Based Authentication (KBA), the latest feature to its IDMatrix electronic identity verification service.

KBA is a type of electronic verification which adds an extra level of protection by using “out of wallet” knowledge questions to verify an individual’s identity, said Veda’s Fraud and Identity Solutions general manager Imelda Newton.

“It adds assurance that the person presenting the identity is indeed that person. Questions are generated dynamically and no established relationship with applicants is required.

“The way in which it breaks predictability for fraudsters means it is highly effective in minimizing fraud due to identity theft or takeover.”

Fraud expert Brett Warfield said recent Australian research indicates the most prevalent forms of fraud involve finance service industry employees assuming the identity of customers to raid their bank accounts and term deposits, and employees creating fraudulent loans.

More than 50% of the frauds identified in the Warfield & Associates research had identity crime at their core.

“Whether it is from staff assuming their customers' identities, criminal groups conspiring to steal identities or create false identities, or even individuals misrepresenting their identity, the ability of organisations to know their customers has never been greater,” said Warfield.

“The criminal gangs, in particular, are adept at finding vulnerabilities in identification and authentication processes and exploiting them. Organisations have to be constantly vigilant about managing their risk and developing new methods and processes to mitigate their exposures.”
  • Yogesh Raja on 1/12/2013 12:11:40 AM

    We are boosting identity fraud by signing important documents despite of knowing that in the event of crime these signatures don't even expose fraudster's gender.

    In other words our current system is like passports without photos and that is why it is so difficult to deter and prosecute fraudsters.

    To make signatures reliable all we have to is attach ID sticker (small sticker with image of person's face printed on it and countersign so that the signature is shared between the sticker and document to validate transaction. This system enables us to personalise signature on any document anywhere in the world without using any equipment and minimal cost and fuss.

    Important points to show why this system will be effective and fool proof.

    1. This system will provide us the option to personalise signature on any document anywhere in the world without the need to use any equipment.

    2. Current signature system is like passports without photos and that is why it is so difficult to deter and prosecute fraudsters.

    3. Personalised signature system will deter fraudsters because in the event of crime their conclusive identity and traces of thumbprint on ID sticker and document will get exposed on the document in question.

    4. Fraudsters will not get tempted to misuse other people’s ID stickers to fake identity fraud because

    a. Their appearance will not match the image of the person on ID sticker.

    b. Their traces of thumbprint will not match those of person on ID sticker. Police could use this option to filter out lookalikes in the event of crime. Image on sticker will provide police option to use CCTV images from other locations to prove that this person in question was not present at that point of transaction at that moment in time. This shows that our current system of relying only signatures as a security is the root cause of the problem.

    c. In the event of crime personalised signatures will make it easy for the victims to prove their innocence instantly.

    d. Along with signature individuals can use ID stickers on say office equipment, greeting cards and even on medical reports and medicines to prevent fatal blunders.

    5. Initially I suggest that financial institutions could supply their customers pocket size books with say 60 ID stickers which will not be expensive to produce. In future we will have to use photo booth machines everywhere to obtain them. It would make no difference if individuals printed their own ID stickers on their computers.

    6. Report on following link show that identity fraud is the fastest growing crime and unless we use proposed system our bad problem will just continue to get worse thus costing fortune. This report also shows that currently we do not have any system good enough to deter identity fraud the way proposed system will.

    7. If required rather than paper we could use different material for these stickers which will retain clearer traces of thumbprint.

    8. Proposed system will eliminate the need for us to protect our personal details since fraudsters will not get tempted to misuse them. This system will drastically reduce our risk of becoming victims of fraud and drastically increase fraudster’s risk of getting prosecuted. This system will be the most effective way to deter use of fake documents thus stopping international fraudsters and illegal immigrants from making easy money from us.

    9. Reduction in identity fraud crimes will also save police and prisons fortunes which they could put to better use elsewhere.

    10. I was motivated to invent this system after becoming a victim of fraud. This idea is rights protected by granted patent number GB2301555

    Those willing to exploit this system should contact me.

    Thank you.

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