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Network Insights: Transaction Velocity

Network insights provides users valuable signals that are a layer deeper than traditional linkages or match statuses. Network insights are derived from our proprietary Identity Network of historical transactions and feedback (outcome) data from our global risk conglomerate of thousands of customers. Our Identity Network leverages sophisticated data science and machine learning to provide unique insights, to help our customers catch fraudulent patterns.

We surface three types of network insights in Pro Insight: velocity, popularity, and volatility. In this three part blog series we’ll deep-dive into each of these attributes to:

  • Define each type of network insight
  • Explain how each insight helps catch specific fraud patterns
  • Why we decided to incorporate these into our products

Transaction Velocity – the number of times an identity attribute was seen in recent transactions

In Pro Insight, you’ll find velocity calculations on the far left column of the network insights panel. The velocity attribute looks specifically at how many times a phone number, primary address, and secondary address have been seen in previous transactions throughout our network (in the past 90 days). You can think of velocity as the anchor; the other insights are calculated based on velocity.

Examples of the velocity attribute:

  • Phone number has been seen in 40 transactions over the past 90 days
  • Primary address has been seen in 39 transactions over the past 90 days
  • Secondary address has been seen in 77 transactions over the past 90 days

We included velocity in Pro Insight knowing that fraudsters can acquire identity data or steal identities, but what they cannot hide is HOW they shop with these stolen identities. More specifically, a fraudster cannot hide the frequency at which they attempt to transact.

High velocity can often be a result of an individual committing multiple fraud attempts in a short amount of time, looking for a merchant who accepts their transaction before the identity is flagged. However, this could also be the result of a good customer who is a frequent shopper. For that reason, it is critical to look at the other network insight attributes too before making a decision.

Want to try Pro Insight and see how network insights can help you fight fraud? Contact us here.

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