Stopping fraud rings with link analysis software
With almost half of all reported crimes in the UK being fraud or cybercrime, the costs to business continue to challenge the bottom line, with organised crime posing continuous and sustained attacks across sectors.
How can organisations keep a step ahead and proactively prevent organised fraud whilst also understanding what ‘good customers’ look like?
This paper unpacks the challenge, takes a 360 view of fraud and explores how advanced network investigation technology can offer solutions.
As more businesses use websites, social media, cloud based services and hold more personal data electronically than ever before, high profile online data thefts continue to rise.
The UK Government launched a new fraud initiative in early 2016 in response to the unprecedented level of fraud being reported across the UK – with almost one in two crimes being fraud or cybercrime.
In fact, fraud against the public and private sectors was the National Crime Agency’s top economic crime threat to the UK in 2016 and it’s estimated that fraud losses in the UK are around £193 billion per year, with almost 75% of losses being against the private sector.
Per year fraud losses in the UK are around £193 billion
Synectics Solutions work across a range of sectors including financial and insurance, on a national and global scale. Their SIRA product not only provides tailored insights to the individual company, but the National SIRA database exists to share intelligence amongst their clients to help tackle financial fraud. Research conducted by Synectics Solutions suggests that in some sectors, organised fraud activity affects as much as 59% of all fraud filings to the National SIRA database 2017.
Organised fraud activity affects as much as 59% of all fraud filings
TARGETING ORGANISED FRAUD
The increase in organised fraud may be a signal that it is resorting more to application fraud due to the advances made by financial organisations to control and reduce losses post application. Or, it could simply reflect the wealth of easily obtained personal data that is being made available by the public in their day to day lives.
As more businesses use websites, social media, cloud based services and hold more personal data electronically than ever before, high profile online data thefts continue to rise. In fact, two-thirds of big UK businesses have been hit by a cyber-attack in the past year, according to government research in 2017.
Keeping ahead of the advancement in digital technology is essential for organised crime groups to maximise their return and evade detection, which is often done from outside of their local jurisdiction. However, despite more companies being concerned about data security, a large proportion still do not have basic protections or have formalised their approach.
Organised crime groups are making use of new technology, the dark web, and the increasing availability of electronic data within businesses, meaning organisations can be routinely targeted by large scale use of both false and hijacked genuine identities. This, combined with the recruitment of mules, the use of manipulated and false information and prominence of professional enablers, provides them with a variety of means with which to penetrate an organisations’ defences.
Once onboarded, often mimicking the behaviours of good customers, fraudulent accounts are increasingly difficult to identify and track. Their main aim is to get access to products and services to either commit fraud, facilitate fraud or for high end money laundering activity.