Fraud ring
A fraud ring is a group of people or identities working together to commit fraud. Lenders can use link analysis to connect applications that reuse details, but a connection is a lead for review, not proof of fraud.
Example
For illustration, four applications arrive in a burst. Three share a phone number and a device, and one of those three is later confirmed as fraud. The linked applications are leads for review, not proof that the other two are fraudulent.
How fraud rings target lenders
Applications can involve synthetic or stolen identities. A ring may submit many applications in a burst, so timing can give a lender another reason to review connected activity.
Velocity checks and link analysis work together when applications arrive in bursts.
How link analysis connects applications
Each application can be treated as a node. A shared detail links nodes, and connected applications form a cluster.
A cluster that touches confirmed fraud is a lead for review, not proof that every linked application is fraudulent. A family may share a phone, and an office phone can connect genuine applications, so analysts check for those explanations.
Questions we get asked
Can one shared detail connect applications for review?
Yes. A shared detail can link applications in link analysis. That connection is a lead to review, not proof that the applications involve fraud.
Does a cluster around confirmed fraud prove the other applications are fraudulent?
No. It makes the connected applications a lead for review, but does not establish that every one is fraudulent. Genuine applications can share details too.
Why pair link analysis with velocity checks?
Fraud rings often apply in bursts, and velocity checks can be used alongside link analysis. The shared details connect applications, while the burst in timing can also prompt review.
Decisimo’s fraud link analysis calculator links applications through shared phones, emails or devices and shows clusters around known fraud in your browser.
