VELOCITY OF CHANGE

Velocity of change counts the number of changes between data elements on new transactions with previous ones as a means of identifying suspicious behavior.


Velocity of change is one of the mechanisms to catch identity morphing. As a general fraud-prevention tool there is a high correlation to risky behavior with those transactions that fail this type of test. Most major fraud-screening solutions have this type of functionality built into it.


Velocity of change is good for detecting stolen card numbers, multiple fraud attacks from the same perpetrator, and also for detecting some forms of identity morphing.

The more data elements you can track velocity of change on the more effective the tool is. Good data elements to perform this test on are: credit card numbers, addresses (billing and shipping), phone number, e-mail address and account number.


If you establish accounts for your customers performing velocity of change on the number of accounts associated with a particular individual data element or in the opening of new accounts can help catch fraudsters before they can even place a fraudulent order.

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THE FRAUD PRACTICE

KEY NOTES


Alternative Solutions - Fraud Screening services have velocity of use already built in. Be sure to check if you can add your own custom fields. If you are looking at doing this check based on their account numbers you will have to look at purchasing in-house solutions or building this service on your own. Look at velocity of change as well, as these two forms of velocity complement each other.


Building this In-House - The velocity of use technique requires a supporting database and two calls to work. One call increases the count on a data element while the second call does a look up to see what the count is.


Estimated Cost - Costs to implement a simple velocity of use tool are low, as long as you already have database resources you can utilize and the applications you use to process orders are easily integrated into it. A lot of ERP, application servers, decision servers and the like on the market have this technology integrated into them.


Sample Venders - N/A

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