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Network Insights: Volatility (Part 3 of 3)

In part 3 of this blog series, we’re sharing more details about the volatility attribute within the network insights panel of Pro Insight. If you missed part 1 and part 2, read those first. As one of the three signals, volatility helps provide a complete picture of the activity our network has seen related to that particular transaction.

Volatility attribute – the number of times an attribute of an identity has changed in recent transactions

Examples of the volatility attribute:

  • The provided phone number has been seen with 27 different primary addresses, 32 different secondary addresses, 50 email addresses, and 81 IP addresses in the past 90 days
  • The provided primary address has been seen with 32 different phone numbers, 12 secondary addresses, 67 email addresses, and 91 IP addresses in the past 90 days
  • The provided secondary address has been seen with 58 phone numbers, 38 primary addresses, more than 99 email addresses, and more than 99 IP addresses in the past 90 days

In our Pro Insight solution, you’ll find volatility located on the far right of the network insights panel. Volatility is determined from the calculated velocity, and determines how many times each individual attribute has changed over the past 90 days, seen within our network.

Volatility is included in the network insights panel to better understand the individual behind a transaction. While velocity and popularity can help detect the number of times an individual has transacted at a given number of merchants, volatility is unique in that it is able to track recent changes. Fraudsters create fake identities from collected data points (potentially bought on the dark web), and often try and change a single element to sneak past transaction authorization to successfully collect goods with a stolen identity. This can be done hundreds, if not thousands of times throughout the day by a single person. The volatility attribute is able to detect this behavior, and provide an indication of the risk we believe is associated with that pattern of activity. Volatility attribute is key to identify Synthetic IDs.

While fraudsters attempt to transact with various combinations of identity elements they have corroborated, we track those changes to help fight fraud. Together, the three types of network insights help paint a picture of the individual behind a transaction and the risk associated with their buying behavior.

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

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