We have selected announcements, relevant news articles and white papers from various sources to provide a more in-depth background of First Party Fraud. They are intended to provide real life examples of these types of activities and the risks businesses may encounter.
Humaitrix Press Release
FOR IMMEDIATE RELEASE
Turnkey Risk Solutions Rebrands as Humaitrix
Payments Industry Executives Leehy and Sahrmann Join Leadership Team;
New Risk Solutions and Data Analytics Services Now Available
NEWARK, Del., Sept.17, 2019 -- (Business Wire) -- Turnkey Risk Solutions (TRS), a risk management company specializing in first party fraud and nationally recognized authority on synthetic identity fraud detection and prevention, has rebranded as Humaitrix to support its new strategic direction. Humaitrix unites the human experience with advanced technologies to mitigate fraud risk, enhance compliance, maximize operational resources and reduce financial loss. The company will now offer risk or first party fraud solutions-as-a-service and data analytics services, in addition to risk consulting. Longtime payments industry veterans John J. Leehy III and Gregory W. Sahrmann have joined the company to help facilitate the company’s expanded vision and will serve as chief executive officer and chief operating officer respectively.
Humaitrix utilizes a holistic and layered approach to help organizations combat the growing threat of first party fraud. More than two decades of knowledge and experience, combined with entity resolution, custom algorithms, artificial intelligence and machine learning go into the company’s proprietary suite of fraud detection, prevention and advanced analytics solutions. Through embedded applications, Humaitrix technology finds hidden corollaries linking false identities and fraudulent credentialing. Partnering with financial institutions, payment processors, insurance carriers and healthcare providers, Humaitrix empowers clients with faster and more accurate new account screening, portfolio monitoring, compliance remediation and more.
Humaitrix founder and former JP Morgan Chase risk executive Amy Walraven will serve as president and chief strategy officer. “Our company has long been at the forefront in the fight against synthetic fraud and we are now able to provide lenders and other service providers with the tools they need to identify and categorize hidden fraud patterns within their enterprise data,” said Walraven. “Adding two strong and accomplished leaders like John and Greg positions Humaitrix for a truly exciting future,” added Walraven.
“Greg and I are excited to be joining the Humaitrix team," stated Leehy. “The company has incredible expertise in combatting today’s sophisticated fraud threats and we’re eager to help lead the way forward,” added Leehy.
Humaitrix is a risk management company specializing in the development and application of highly complex algorithms for detecting various forms of first party fraud. Extensive analytical, investigative and operational expertise drives industry leading solutions that proactively detect and prevent synthetic identity fraud, credit abuse and credit bust-out schemes, while providing more robust compliance with minimal customer friction. Founded in 2013, Humaitrix is headquartered in Newark, Del. To learn more, please visit Humaitrix.com or call (302)-273-3007.
The articles listed below represent a small cross section of relevant press releases for First Party Fraud and the impacts associated within multiple industries. These articles were selected to illustrate that even though First Party Fraud has become the new buzz word it has existed for many years. Due to the lack of accurate identification and controls it has become persistent and pervasive.
(Click on headers . . . for additional links)
First Party Fraud ...
The “Customer” is the perpetrator of the fraud and the business is the victim.
BUST OUT - A fraud scheme where the “Customer” intends to maximize the amount of loss to a business; frequently going significantly over the credit limit.
- Fifteen Charged in ‘Bustout’ Scheme That Cost Victim Banks More Than $15 Million - The Federal Bureau of Investigation
- Transcontinental crime ring broken up, Pinellas authorities say - Tampa Bay Times
- Queens man sentenced in $200,000 in credit card "bust out" scam - U.S. Immigration and Customs Enforcement
- Jackson Heights Variety Store Owner Masterminded $6.8 Million Credit Card Fraud and Money Laundering - Queens District Attorney's Office
CREDIT REPAIR - “Customer” is intentionally manipulating their credit history in an effort to hide from bad credit.
- Three Men Indicted In $2.5 Million Fraud Scheme Using Stolen Social Security Numbers - United States Department of Justice
- Participant In Multi-Million Dollar Fraudulent Credit Repair Scheme Sentenced - United States Department of Justice
SYNTHETIC IDENTITIES - An identity that is fabricated leveraging a valid Social Security Number (SSN) and combining it with fictitious Personal Identifying Information (PII)
- Suspected terrorist links to synthetic ID fraud are being 'ignored' - CBC News
- How 'synthetic' identity fraud costs Canada $1B a year - CBC News
- More defendants plead guilty in massive, $200M credit card fraud - nj.com
- 18 charged in $200M credit card fraud scam that created 7,000 new identities - nj.com
- The Borrower Who Never Was - The Wall Street Journal
Reputational Risk ...
These articles are examples of potential implications of First Party Fraud
ANTI-MONEY LAUNDERING (AML)
CHILD ID THEFT
- Report on Child ID Theft Attempts to Raise Awareness on Vital Issue - Carnegie Mellon University CyLab
- Scam traffic's in kids' social security numbers - NBC News
KNOW YOUR CUSTOMER (KYC)
- Banks 'must go beyond box-checking' for successful KYC operations - Bureau Van Dijk
Impacted Industries ...
These articles are examples of some of the costs associated with First Party Fraud.
- Flawed Social Security data say 6.5M in US reach age 112 - Associated Press
- Improper payments by federal agencies reach a record $125B - Associated Press
- International crime ring stole millions from Medicare - Dayton Daily News
- Fraud and Organized Crime Intersect Eurasian Enterprise Targeted - The Federal Bureau of Investigation
- Thieves are targeting your child's Social Security Number - 19 Action News
- Businesses are Also Synthetic ID Theft Targets - SecureWorld
- The $272 billion swindle - Why thieves love America’s health-care system - The Economist
- Using Big Data to Stop Fraud in its Tracks - A Smarter Planet Blog
- A $250 Million Fraud Scheme Finds a Path to Brighton Beach - The New York Times
- 57% of Insurers Say Personal Lines Insurance Fraud Losses to Rise in 2013 - Claims Journal
- Investigating Insurance Fraud - A $30-Billion-a-Year Racket - The Federal Bureau of Investigation
Synthetic identity fraud: Can I borrow your SSN? Who else might be using your Social Security number and why?
This paper is a primer for understanding synthetic identity fraud. It defines synthetic identity fraud, describes its evolution, explains how it works and what the identities are being used for, identifies the industries being impacted and shows who is most commonly targeted and why. It also highlights some of the challenges and the ramifications associated with this fraud type.