System, method and computer program product for assessing risk of identity theft

• US 7,870,078 B2
• Filed: 10/30/2003
• Issued: 01/11/2011
• Est. Priority Date: 11/01/2002
• Status: Active Grant

• Current Assignee: Insight ID, Inc.
• Original Assignee: Insight ID, Inc.
• Inventors: Clark, Robert T., Elliott, Adam
• Primary Examiner(s): OUELLETTE, JONATHAN P
• Application Number:
  US10/697,076
• Publication Number:
  US 20040153663A1
• Time in Patent Office: 2,630 Days
• Field of Search: 705/1
• US Class Current: 705/318
• CPC Class Codes: G06Q 30/0185 Product, service or business identity fraud
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 50/265 Personal security, identity or safety
• CPC Class Codes: H04M 15/00 Arrangements for metering, time-control or time indication ; Metering, charging or billing arrangements for voice wireline or wireless communications, e.g. VoIP
• CPC Class Codes: H04M 15/47 Fraud detection or prevention means
• CPC Class Codes: H04M 2215/0148 Fraud detection or prevention means

Abstract

In one embodiment, this invention analyzes demographic data that is associated with a specific street address when presented as an address change on an existing account or an address included on a new account application when that address is different from the reference address (e.g., a credit bureau type header data). The old or reference address and the new address, the new account application address or fulfillment address demographic attributes are gathered, analyzed, compared for divergence and scaled to reflect the relative fraud risk.

Claims

1. A computer-implemented method for assessing a risk of fraud, comprising:

receiving at least information relating to a first address relating to one of an account holder or an applicant;

determining demographic data relating to the first address;

receiving information relating to a second address;

determining demographic data relating to the second address

measuring demographic differences between the first and second addresses using the determined demographic data relating to the first address and the determined demographic data relating to the second address; and

calculating a score indicative of a level of risk of identity theft fraud using the measured demographic differences, wherein calculating a score is done using a processor.

2. The method of claim 1, further comprising analyzing whether the first address is a warm address.

3. The method of claim 1, further comprising analyzing whether the first address is a undeliverable mail address.

4. The method of claim 1, wherein calculating a score comprises using a mathematical model that includes weighting factors for one or more pre-defined variables used in the model.

5. The method of claim 1, further comprising reporting an assessment of a risk of identity theft based at least in part on the score.

6. The method of claim 5, further comprising analyzing the first address for negative data.

7. The method of claim 6, wherein the act of assessing risk of identity theft is based on the score and analysis of the negative data.

8. A computer-implemented method for assessing a risk of identity theft fraud with respect to new applications, comprising:

receiving first address information relating to an applicant for an account;

receiving reference address information relating to a reference address;

determining demographic data relating to the first address information and the reference address information; and

calculating a score indicative of a level of risk of identity theft fraud using the determined demographic data, wherein calculating a score is done using a processor.

9. The method of claim 8, wherein receiving a reference address includes receiving reference address information as part of input data provided in making a request to assess a risk of identity theft fraud.

10. The method of claim 8, wherein calculating a score comprises measuring at least one difference in demographic data between the determined demographic data relating to the address information and the determined demographic data relating to the reference address.

11. The method of claim 8, wherein receiving reference address information includes receiving reference address information from a third party database.

12. The method of claim 8, wherein the reference address is an address from a credit report of the applicant.

13. A computer-implemented method for assessing a risk of fraud, comprising:

receiving street addresses including an applicant address and a reference address;

determining demographic data relating to the street addresses;

using demographic attributes of the street addresses to predict the risk of fraud by analyzing differences between the demographic data of the street addresses;

assessing the risk of fraud based on the differences between the demographic attributes wherein assessing the risk is done using a processor.

14. The method of claim 13, further comprising reporting the assessment of fraud.

15. The method of claim 14, wherein assessing a risk of fraud comprises assessing the risk of identity theft fraud perpetrated through a new application.

16. The method of claim 14, wherein assessing a risk of fraud comprises assessing the risk of identity theft fraud due to account takeover.

17. The method of claim 16, further comprising receiving information relating to a media request.

18. The method of claim 17, further comprising assessing risk of identity theft when the request for media is made on an emergency basis.

19. The method of claim 13, wherein assessing risk of fraud comprises assessing a risk of identity theft in fulfillment activities.

20. The method of claim 13, further comprises determining negative information relating to the street addresses and determining positive information relating to the street addresses and associating the negative and positive information with the determined demographic data to assess the risk of identity theft fraud.

21. A system for assessing a risk of fraud, comprising:

a processor;

memory;

computer instructions operable by the processor to append data from the memory or input by a user to at least one variable used in assessing a risk of identity theft fraud;

computer instructions operable by the processor to analyze differences in demographic data for two different street addresses;

computer instructions operable by the processor to calculate a score indicative of a level of risk of fraud; and

computer instructions operable by the processor to output an assessment of a risk of level of fraud.

22. The system of claim 21, wherein the computer instructions to calculate a score comprise instructions to calculate a score indicative of a risk of fraud using a formula of the form Y=A+B1*x1+B2*x2+B3*x3+Bn*xn

where Y is a dependent or outcome variable and is the result used to predict the risk of identity theft fraud, A is a constant value, B1 . . . Bn are the coefficients or weights assigned to independent variables, and x1 . . . xn are the independent variables.

23. A computer-implemented method for determining whether an account request for a change of address from an applicant involves fraud, comprising:

receiving a request to change an address of an account, said request including an old address and a new address of the applicant;

obtaining demographic data based on the old address of the applicant;

obtaining demographic data based on the new address of the applicant;

calculating a differential between the demographic data based on the old address of the applicant and the demographic data based on the new address of the applicant;

calculating a score for the request based on the differential, wherein calculating a score is done using a processor; and

determining, based on the calculated score, whether the request for change of address may involve fraud.

24. A computer-implemented method for determining whether an account request from an applicant for media involves fraud, comprising:

receiving a request to provide media to the applicant relating to an account;

determining whether the account has information relating to change of addresses, said information including an old address and a new address of the applicant;

obtaining demographic data based on the old address of the applicant;

obtaining demographic data based on the new address of the applicant;

calculating a differential between the demographic data based on the old address of the applicant and the demographic data based on the new address of the applicant;

calculating a score for the request based on the differential, wherein calculating a score is done using a processor; and

determining, based on the calculated score, whether the account request may involve fraud.

25. A computer-implemented method for determining whether an account request from an applicant for media involves fraud, comprising:

receiving a request to provide media to the applicant relating to an account, said request including a current address of the applicant and a shipping address to which to ship said media;

obtaining demographic data based on the current address of the applicant;

obtaining demographic data based on the shipping address of the applicant;

calculating a differential between the demographic data based on the current address of the applicant and the demographic data based on the shipping address of the applicant; and

calculating a score for the request based on the differential, wherein calculating a score is done using a processor; and

determining, based on the calculated score, whether the account request may involve fraud.

26. A system for processing account requests from applicants, comprising:

a processor for for receiving account requests from one or more business entities, each of said account requests including an address of an applicant;

the processor including an interface for transmitting said addresses to an address data service to obtain demographic data therefrom; and

the processor further including a scoring module for calculating a score for the request based on the demographic data, the score indicating whether the request may involve fraud.

27. The system of claim 26, wherein the account requests are input to a client device and transmitted to a server hosting the processor.

28. The system of claim 26, wherein the account requests are input to a client device and the processor is hosted on the client device.

29. A method for providing information assessing a risk of fraud, comprising:

receiving two different street addresses, the two different street addresses including an applicant address and a reference address;

receiving demographic data associated with the two different street addresses;

analyzing the two different street addresses and the demographic data associated with the street addresses, wherein analyzing is done using a processor; and

based, at least in part on the analysis, providing an assessment of a risk of fraud.

30. The method of claim 29, wherein providing an assessment of risk comprises sending the assessment via an electronic message.

31. The method of claim 29, wherein providing an assessment of a risk of fraud comprises providing a score and an explanation of the score.

32. The method of claim 29, wherein providing an assessment of risk comprises sending the assessment via voice.