ID Insight patent to help prevent identity theft

NORTHFIELD, Minn., Aug 02, 2010 (BUSINESS WIRE) -- Minnesota-based data and analytics company ID Insight has been awarded a patent for its innovative method of identifying differences in addresses to help banks and other financial institutions detect and prevent identify theft.

Address manipulation plays a critical role in identity fraud, and the eight-year-old company uses its cutting-edge data and analytics to help banks, credit card issuers and retailers analyze every available piece of information about the addresses tied to change-of-address requests.

ID Insight has determined that the primary way to commit identity theft is to change the address from that of the victim to that of the thief. Once complete, the thief is free to open new accounts in the victim's name and take over existing accounts. When analyzing legitimate versus fraudulent address changes, there are significantly different patterns. This is the point where identity theft can be detected in process -- and stopped before any damage is done. ID Insight's patented "Address Differential Analysis" technology brings this concept to action, enabling financial institutions to cost-effectively combat this expensive, rapidly expanding crime.

How it works: If a "customer" says they're moving from a suburban residence to a vacant lot in a crime-ridden part of town and asks for a replacement credit card, for instance, ID Insight knows -- in about one second -- that a fraudster is likely behind the request.

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