Fraud ring

A fraud ring is a group consisting of multiple bad actors who work together to perpetrate fraud, such as money laundering, identity theft, or marketplace fraud. Fraud rings can be small or large, consisting of as few as two or three bad actors, or spanning into the dozens or even hundreds. Often, the members of a fraud ring will share resources (for example, identity information needed to skirt identity verification measures) and work in tandem to realize their goals.

Frequently asked questions

How can businesses identify a fraud ring?

When a business uncovers a bad actor engaged in fraud on their platform, it can often be difficult to determine whether or not that bad actor was working alone or as part of a larger fraud ring. Certain tools and techniques can make it easier for you to make this determination. Link analysis, a data science technique that seeks to understand connections between accounts and users, is one such tool.

For example, let’s say that a business identifies an account engaged in fraudulent activity. They can use a link analysis tool to understand how that account is connected to other accounts on the platform through shared activity or details. If multiple accounts are linked with suspicious details that are not typically shared — such as an IP address, browser fingerprint, device fingerprint, physical address, or payment details — it may be indicative of a larger fraud ring that warrants further investigation.

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