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The Power of Data in Preventing Identity‐Based Risk
The changing notion of an identityWith that paradigm shift of how people interacted with agencies, the notion of an identity can begin to change
Government agencies are under attack
• Usable Social Security cards are available for $25• A driver’s license is available for $50 • A high quality U.S. Passport is available for $125
• Usable Social Security cards are available for $25• A driver’s license is available for $50 • A high quality U.S. Passport is available for $125
Identities as a CommodityIdentities as a Commodity• Usable Social Security cards are available for $25• A driver’s license is available for $50 • A high quality U.S. Passport is available for $125
Identities as a Commodity
More sophisticated perpetrators
Limited FWA Controls
Push for speed to delivery
Criminals preying on a good program…
Participant‐Based Risk• Applying with stolen identity• Sell formula or foods purchased with program vouchers• Trade vouchers for other items or cash• Already receiving benefits • Falsify information when applying for benefits(ie residency)• Buy unauthorized foods with WIC vouchers.
Vendor‐Based Risk• Redeem vouchers for cash, credit, or unauthorized
foods/items.• Overcharge for foods.• Purchase foods from unauthorized sources.
Collusion• Staff creating phantom participants• False participant certification
Where agencies are with identity management
Application
Provide Benefits
Revalidation
• SSA Checks• In State Data Checks• KBA Quiz• Documents
• Update ID if notified
• Deceased Check• PARIS Check
These do work, but…
• SSA Checks• In State Data Checks• KBA Quiz• Documents
Are we doing enough?
Identity theft is now just a part of life.. preventing fraud is up to us!
Uptick in account takeover
Fraud used to focus on banks, but they got better, so switching to government
Synthetic Identities: No one is complaining
Where we should be
IdentifyVerifyAuthenticate
Identity ActivityShared IntelligenceKnown Risk
Identity Checks
Contributory Exchanges
Start with a complete, accurate view of an identity
Member Identity Management
IdentifyVerifyAuthenticate
Identity Checks
Agencies constantly walking a fine line
Decrease
• Authentication approval rate
• Fraud deflection rate
INCR
EASE
• False failure rate• Abandonment rate• Complaint rate• Authentication time execution• Implementation effort
DECR
EASE
BiometricBased
Something you are
Multi‐layered identity authentication
Goal High Security
High Convenience
LowCost
Identity Monitoring
Does the ID present future
risk
Identity Verification Layers
AnalyticsBased
How you compareto others
ContextualBased
How you act
PossessionBased
Something you have
KnowledgeBased
Something you know
Delivered on a single integrated platform
Flexible Workflow ManagementAnalytic Decisioning
Policy and Rules ManagementSingle Point of Integration
Decision Engine
Dynamic KBA
Multifactor AuthenticationID Document
Authentication
New Account RiskExisting Account Risk
Analytic Score and Attributes
Identity Verification
Device Risk Scoring
New Account OpeningLogin/ Account Management
OTP
Success of the program
system.
of applicants are uniquely resolvedby the
98%
in costs after 5 months of implementation
$12 million
FDCF received the Governor’s Awardsaving the state over
Cost Savings of
$670 million
3years
over
Additional Advantage• Expedited Benefits
Calculation Methodology• Expedited Food Assistance 1.3 months (based on Date of Application)
• Regular Food Assistance 5.6 months (based on Date of Application)
• Cash Assistance 4.7 months (based on Date of Authorization)
• Managed Care Medicaid 9.3 months (based on the month of application)
• Medicaid FFS based on the average monthly expenditures for managed care services during SFY 2015‐2016
Cost avoidance savings since implementation
Common identity management misconceptions
15
“I don’t have a problem”
“This is very expensive”
“My process works”
“This will cause more work for my staff”
Yes you do.
An effective identity management program will increase efficiency.
It may... for now, but can it be better? Yes.
There are many options, many of which are very inexpensive with a high ROI.
If done correctly, it will make their process easier. “This will place barriers to the good people”
IdentifyVerifyAuthenticate
Identity Checks
Break Down Data Silos
Identity ActivityShared IntelligenceKnown Risk
Contributory Exchanges
The Next Generation ofHHS Program Integrity
The National Accuracy Clearinghouse
Origins of the clearinghouse
© 2016 LexisNexis. All rights reserved.
National AccuracyClearinghouse
(NAC)
LexisNexis Selected
MOA’s
System Acceptance
Evaluation Complete
2005Katrina
2008Buddy States
2009
20132014 2015
2016NAC
Expansion
2011OMB Pilot
2013
Competitive Procurement
2012
The value and benefits of the clearinghouse
© 2016 LexisNexis. All rights reserved.
The NAC is…
Reducing and preventing dual participation Reducing and preventing dual participation
Improving application processing accuracy Improving application processing accuracy
Improving efficiency and data integrityImproving efficiency and data integrity
Expediting interstate coordination and investigation Expediting interstate coordination and investigation
Proven results
© 2016 LexisNexis. All rights reserved.
Evaluation ContractorEvaluation Contractor
NationwideSNAP
Cost SavingsProjectedup to
of collisionsare high
confidenceImmediate‐
actionmatches
85%
$5.6million
1st
year
in SNAP preventionduring the
5 Pilot Statessaved an estimated
$200million
annually
For Excellence in Human Services Information Technology
ISM‐APHSA2015
RecognitionAward
MS NACreceived
$4.4millionin initial Dual Participation
Improper Payments
5 Pilot Statesidentified
Final Evaluation Report to CongressFinal Evaluation Report to Congress
FNS
From vision reality
© 2016 LexisNexis. All rights reserved.
2009Data‐sharing agreements executed
2008“Buddy” State model drafted for pairing data
SNAPMedicaid
Identity Resolution
Identify Dual Participation
Inter/Intrastate Matching
Improve Application and Data Efficiency
Cost Savings and Reallocation
Program Trends and Analysis
Cross‐Program Intelligence
Identify Program Coverage Gaps
Identify Risky and Suspicious Individuals
The appropriate, data‐driven approach to identity management will:
Prevent ID fraud and other abuses
Provide a positive user experience
Improve data integrity
Enlighten staff