Identity Fraud Prevention for Government Agencies Webinar Program. An i360gov Educational Webinar Sponsored by:

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1 Identity Fraud Prevention for Government Agencies Webinar Program An i360gov Educational Webinar Sponsored by:

2 Identity Fraud Prevention for Government Agencies Speakers: Frank W. Abagnale Identity Fraud Expert and author of Catch Me If You Can Andy Bucholz Vice President of Market Planning, LexisNexis Risk Solutions An i360gov Educational Webinar Sponsored by:

3 Questions are encouraged and can be submitted via the interface control panel. An i360gov Educational Webinar Sponsored by:

4 Identity Fraud Prevention for Government Agencies Frank W. Abagnale Identity Fraud Expert and Author of Catch Me If You Can Frank W. Abagnale is one of the world s most respected authorities on identity theft, forgery, embezzlement and secure documents. For over 35 years he has worked with, advised and consulted with hundreds of financial institutions, corporations and government agencies around the world. Mr. Abagnale s rare blend of knowledge and expertise began more than 40 years ago when he was known as one of the world s most famous confidence men. This was depicted most graphically in his best-selling book, Catch Me If You Can, a film of which was also made, directed by Steven Spielberg with Leonardo DiCaprio and Tom Hanks. A Broadway musical of the same title was also created and in April 2011 opened on Broadway. It has since been nominated for four Tony Awards, including Best Musical. Between the ages of 16 and 21, he successfully posed as an airline pilot, an attorney, a college professor and a pediatrician, in addition to cashing $2.5 million in fraudulent checks in every state and 26 foreign countries. Apprehended by the French police when he was 21 years old, he served time in the French, Swedish and U. S. prison systems. After five years he was released on the condition that he would help the federal government, without remuneration, by teaching and assisting federal law enforcement agencies. Mr. Abagnale has now been associated with the FBI for over 35 years. More than 14,000 financial institutions, corporations and law enforcement agencies use his fraud prevention programs. In 1998 he was selected as a distinguished member of Pinnacle 400 by CNN Financial News a select group of 400 people chosen on the basis of great accomplishment and success in their fields. In 2004 Mr. Abagnale was selected as the spokesperson for the National Association of Insurance Commissioners (NAIC) and the National Cyber Security Alliance (NCSA). He has also written numerous articles and books including The Art of the Steal, The Real U Guide to Identity Theft and Stealing Your Life. An i360gov Educational Webinar Sponsored by:

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39 Identity Fraud Prevention for Government Agencies Andy Bucholz Vice President of Market Planning for LexisNexis Risk Solutions Andy Bucholz is the Vice President of Market Planning for LexisNexis Risk Solutions, where he is responsible for the strategy and product development for identity-based solutions within the LexisNexis Government Division. In this capacity, he helps federal, state, and local governments stop fraud and recover revenue by leveraging the availability of public records data. Bucholz has held multiple leadership roles during his five year tenure at LexisNexis. Prior to joining LexisNexis, he founded G2Tactics, Inc., a startup that built the first portable mobile license plate reader. He is a recognized expert and frequent speaker in the field of data aggregation technology as it is used to uncover fraud an area in which he holds several patents. Bucholz holds a Bachelors of Science in Business Administration degree from The Citadel, The Military College of South Carolina and has secured several patents in the field of data-gathering and data mining technology. He also brings a strong law enforcement background to LexisNexis, having served previously as a police officer for the City of Alexandria, Virginia and has authored the published book, Police Equipment. An i360gov Educational Webinar Sponsored by:

40 Identity Fraud Prevention Andy Bucholz, VP Market Planning LexisNexis Risk Solutions

41 A Question of Identity Who is applying? How do I validate their identities online? Are they Fictitious? A Resident? Incarcerated? Deceased? What interactions do they have with my Agency? Are they receiving benefits? Do I know where they live and how to contact them? Are they committing fraud? Should I trust the information being presented to me? Identity Fraud Prevention for Government Agencies 41

42 Identities Change Faster Than Government Can Keep Up Moving (Especially out of State) 35,000,000 people moved in ,000,000 people move out of state annually 40% of movers never notify the Post Office Name Changes, Divorces, Marriages 3,000,000 changes in marital status each year 50,000 applications for name changes each year 3,900,000 children are born annually 2,500,000 people die annually Not all are reported to SSA Multiple Social Security Numbers 10% of people have multiple SSNs associated with their names Phone Numbers The U.S. has over 321M active cell numbers Total active phone numbers exceeds U.S. pop Criminal History Over 2,200,000 individuals currently incarcerated Over 20,000,000 individuals with criminal history Multiple Residences Over 5,000,000 homes sold in 2011 Employment 21,000,000 employment changes annually Identity Fraud Prevention for Government Agencies 42

43 Applications Are Increasingly Online Payments Are Now Mostly Anonymous Applications are increasingly online, improving efficiency, but creating gateways for identity-driven fraud Payments are mostly anonymous with debit cards and electronic deposits Identity Fraud Prevention for Government Agencies 43

44 Hacking for Identities A specific person s SSN can reportedly be bought for as little as $3.80 In the last five years, SSNs have become so easy to obtain that thieves now usually bundle the number with extra identifying information like birth dates and even medical records in order to get the price up. "Social Security numbers are a commodity in the underground right now. Identity Fraud Prevention for Government Agencies 44

45 Selling Your Identity on the Black Market Identity Fraud Prevention for Government Agencies 45

46 You Have Given Away Your Identity in Many Places It is very easy to steal an identity - they are everywhere and unguarded: Doctor s Offices Dentist Offices Rental Applications Job Applications Car Dealerships Schools Athletic Programs Ancestry Websites Home mailbox Identity Fraud Prevention for Government Agencies 46

47 The Battle Against Identity Theft has been Lost 850M identities have been stolen since 2004 Over 500M stolen from Banks, Retailers, and Others in 2013/14 Protecting identities from criminals has failed HHS Agencies now need to protect themselves from criminals using stolen or synthetic identities Government fraud accounted for less than 10% of identity fraud in 2006, but 50% by M people were the victims of identity fraud in M American Veterans / Service Members compromised in 2006 A Name, SSN, Address and DOB can be purchased online for as little as $5.00 Identity Fraud Prevention for Government Agencies 47

48 Agencies are Under Attack by Organized Criminals Buy or Steal Identities Expand to Other States and Programs Fraudsters infiltrate and rob HHS programs using stolen and synthetic identities Establish Identities: Mailbox, DL, W2, I9, Phone # Receive Benefits Use Identities to Apply for HHS Benefits Identity Fraud Prevention for Government Agencies 48

49 There is a Solution

50 Comprehensive Identity Management See a Complete View of Each Identity at the Start of the Application Process ENROLLMENT DISCOVER VERIFY AUTHENTICATE Who are you? Does John Doe exist? Are you John Doe? Discover the identity Capture identity at application Verify the identity Establish that the identity exists Authenticate the identity Determine ownership of the identity ASSESSMENT EVALUATE ALERT Is John Doe Eligible? Is John Doe Still Eligible? Evaluate the identity Assess against legislation, regulations, and rules to determine if the applicant is eligible Alert to identity changes Receive notification when high-risk behaviour is exhibited Identity Fraud Prevention for Government Agencies 50

51 Reducing Identity Fraud: Florida Department of Children and Families (DCF) Success Story 99 % FL DCF received the Governor s Savings Award saving the state over $12 million in costs after 5 months of implementation of applicants are processed by the system. Expects to save over $60 million in the 1 st year The State of Florida has realized tremendous savings by streamlining operational processes and by proactively deterring fraudulent enrollments Solving Problems That Matter 51

52 LexisNexis and Florida DCF Partnership The Need for Effective Front-End Prevention Streamline the Process and Time Required to Authenticate Applicants Achieve Uniform Identity Assurance Across All Applicant Channels Challenges: Integration across multiple programs (high SNAP focus) Present a friendly and consistent user experience Successes: Workers and applicants adjusted smoothly to the new process Significant Return-on-Investment $15.3M: Fraudsters Opting-Out to go Elsewhere $5.1M: Identity Theft Cost Avoidance $3.2M: Alerts that the Applicant is Deceased $7.3M: Alerts that the Applicant is Incarcerated $1.4M: Staff Efficiency Savings Deter, Identify, and Review Fraud Total Savings To-Date: $32.3M Identity Fraud Prevention for Government Agencies 52

53 LexisNexis Identity Management Solution: Verification Process Key Benefits: Instantly checks an individuals selfentered/provided information Verifies critical identity information relevant to agency processes against thousands of data sets, including residency Allows the agency to specify the number of fields required to pass verification Compliments existing SSA verification checks for Name/SSN Integration: Remains transparent to the user Provides real-time response Seamlessly integrates into workflow If an individual fails the agency s required pass fields, the application is flagged for additional adjudication Identity Fraud Prevention for Government Agencies 53

54 LexisNexis Identity Management Solution: Authentication Process Instant Authenticate is a knowledge-based authentication (KBA) solution that can proof an identity and evaluate potential risk by answering the question: Are you the owner of this identity? Key Benefits: Public records driven Generates out-of-wallet, multiple choice questions Supports both banked and non-banked populations Creates uniform identity assurance across all applicant channels Integration: Highly configurable Supports multiple languages Identity Fraud Prevention for Government Agencies 54

55 LexisNexis Identity Management Solution: Diverse Proofing Categories Establish ownership of an identity in real-time to prevent improper payments Property Address Relatives Questions reflect dynamic and changing information on the individual SSN Info Question Categories Drivers License Student Financial Vehicle Associate Identity Fraud Prevention for Government Agencies 55

56 Not Just Online: Supports Call Centers, Paper Based Applicants, and In-Person Interviews Address Call Center Applicants who failed online Paper-Based Applicants In-Person Interviews Worker Utilizes LexisNexis Hosted Online IV/IA Portal *Minimal information required to locate an individual s identity for verification / authentication* SSN Info Student Property Vehicle Relatives Drivers License Question Categories Financial Associate Identity Fraud Prevention for Government Agencies 56

57 The LexisNexis Difference: Our Solutions Are powered by LexID SM, a highly accurate linking technology, turning disparate information into meaningful insights Link over 10,000 sources of data to make locating and identifying individuals simpler and easier Are powered by over 46 billion records, with 77 million records processed daily 16.5 billion consumer records 4 billion property records 277 million unique/active LexIDs 1.4 billion unique business contacts Contain historical information on the entire US population going back up to 35 years. Comprehensive Content Names Current and Historical Addresses Criminal and Incarceration Records Sex Offenders Death Records Phones (mobile, prepaid, unlisted) Utilities (some back to 1940) Real Property Motor Vehicles Watercraft and Aircraft Bankruptcies, Judgments, Liens Professional Licenses Other Licenses (Hunting, Fishing, etc.) Concealed Weapons Civil Court Filings Marriage and Divorce Records Comprehensive News Business / Employment Info Identity Fraud Prevention for Government Agencies 57

58 Questions? Andy Bucholz VP of Market Planning Identity Fraud Prevention Resources to Explore: FraudoftheDay.com IdentityGov.com Identity Fraud Prevention for Government Agencies