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First-Party Fraud (FPF) / Synthetic Identity Fraud


Financial institutions are forced to combat many types of fraudulent activity, but few are as damaging and difficult to detect as first-party or “bust-out” fraud. Analysts estimate that between 10% and 20% of all banks’ unsecured bad debt is actually bust-out fraud, resulting in tens of billions in losses every year.

Unfortunately for financial institutions, organized FPF is hard to detect via traditional rules-based and predictive analytics.  Bust-out fraud is difficult to identify for three primary reasons:

  • The fraudsters initially look and act like normal customers;
  • Criminals work together in networks and often spread activity across multiple departments within a bank; and
  • After holding accounts for a set period of time, the fraudsters act very quickly, meaning that banks can’t detect problems fast enough to react and block purchases.

Fortunately, criminals within fraud networks often reuse or slightly alter their identity information in creating multiple bank accounts. Infoglide SLA uses sophisticated technology to identify and piece together both exact and inexact (fuzzy) linkages and non-obvious relationships using these recycled pieces of information. As a result, fraud rings can be discovered before members strike the bank.

Key benefits of Infoglide’s Social Link Analysis solution for First-Party Fraud include:

  • Reduced Fraud Losses:  With social link analysis, banks can identify fraud rings while they are still active. As a result, banks can take effective countermeasures, such as increased monitoring, shutting down accounts, or taking legal action before fraudsters strike;
  • Reduced Operational Expenses:  Infoglide Social Link Analysis can complement fraud detection solutions already in place at the bank to streamline processes. For example, Infoglide SLA can provide additional analytics that improve estimates of a specific threat to improve triage efforts; and
  • Increased Investigator Efficiencies:  Through its visual link analytics tool, investigators can quickly discover and visualize relationships of persons of interest. These visual references can improve collaborative efforts between different parts of the organization as well as with law enforcement.

Read our newest white paper: Busting Fraud Rings with Social Link Analysis