Fraud Prevention Strategies for the Digital Age

Fraud Prevention Strategies for the Digital Age

How can a state prevent UI fraud from occurring???

We believe there are a few principles that must be embraced and actions that must be taken to achieve this.??

Principle 1: Embrace the concept that stopping fraud before it begins is the optimal strategy— prevention is the best cure. Your physician will validate this regarding your health, and it remains true for the health and integrity of states’ public benefits programs. Once bad things happen, they cannot “un-happen”. You may be able to mitigate the effects, but the damage has already occurred.?

Principle 2: Data is key. States must leverage the data they already have in hand including data they own or reliable data they have access to. The data must be real data--not derived data or information taken from the dark web which may or may not be completely accurate. The data needed is data gathered from real customers whose identification may be used in filing a claim along with the data gathered from criminals who file claims using stolen identities.??

Principle 3: Embrace new technologies designed to prevent fraud in the digital age. Technology is the only way to effectively combat unemployment insurance fraud being perpetrated in the digital age by fraud actors utilizing technological tactics. ?A large percentage of fraud is perpetrated by unknown actors, and the percentage is growing. ?

AI/ML and deep learning enabled fraud analytics software can help state governments identify suspicious claims in real time to prevent fraud from taking place before it occurs. In addition, sentiment analysis can help states analyze and better understand trends and linkages among seemingly unrelated events. Sentiment analysis with independent and combined fraud scores, can help states can understand overall risk on an individual and network basis.?

Learn more about how TCS can help you predict and respond to unemployment insurance fraud proactively while protecting and serving citizens with legitimate needs and claims, please write to [email protected]

This is the final in a four-part series, Fraud Prevention Today.?If you missed any of the first three blogs in this series, please click below.

Blog 1 - What Lurks in the Shadows of Unemployment Insurance Fraud?

Blog 2 - The changing face of Unemployment Insurance fraud requires new protection strategies

Blog 3 - Why Current UI Fraud Prevention Strategies Do Not Work in the Digital Age


About the Author:?

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Dale Smith is Director Unemployment Insurance for TCS. Formerly served citizens of Mississippi for over 39 years in numerous roles from UI benefits customer service representative to UI tax field representative and auditor, to UI chief financial officer, UI administrator, deputy executive director of Mississippi’s workforce agency and chief operating officer, retiring in June 2018. Working with TCS for past 4 years as Director of Unemployment Insurance and Workforce programs, and also working with American Institute for Research as a UI subject matter expert.

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