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Fraudulent Entities Lack History of Information Use, Study Finds
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A new report by the Department of Internal Affairs has highlighted the lack of a history of information use as a key indicator of fraudulent entities. The study found that many entities do not have a verifiable record of using information over time, making it difficult to determine their authenticity.
Lack of Information Use History
Researchers at the department analyzed data from various sources, including utility bills and bank statements, to identify patterns of information use. They found that while these documents can provide a link between an entity’s name and address over an extended period, they do not necessarily demonstrate a history of using specific attributes.
“The lack of a history of information use is a significant red flag for fraud,” said [Name], lead researcher on the study. “Entities that cannot demonstrate a consistent pattern of information use are more likely to be fraudulent.”
Trusted Referees and Limited Information
The study also found that Trusted Referees, who contribute to evidence of an entity’s use of information over time, may only provide limited information about specific attributes.
Recommendations for Mitigating Risk
To mitigate this risk, researchers recommend gathering additional evidence from multiple sources, including:
- Social contexts
- Professional contexts
- Financial contexts
- Health contexts
They also suggest using location-based analytics to detect anomalies in an entity’s behavior, such as:
- Flagging requests for access to physical files not held at the entity’s address
- Detecting unusual patterns of information use
Importance of Internal Controls
The study’s findings have important implications for organizations seeking to verify the authenticity of entities. “A history of information use is a critical factor in determining whether an entity is genuine,” said [Name]. “By analyzing this data, we can better identify fraudulent entities and prevent fraud.”
Researchers also found that poor internal controls can compromise the effectiveness of any identification process.
“Internal controls are an organization’s first line of defense against fraud,” said [Name]. “By implementing robust internal controls, organizations can minimize the risk of process failure and ensure the accuracy of their information.”
Recommendations for Implementing Internal Controls
The study recommends:
- Segregating duties among staff members to reduce the risks of error and internal fraud
- Implementing policies, procedures, and techniques that minimize the risk of identification processes failing to meet their objectives
Full Report and Contact Information
The full report is available on the Department of Internal Affairs’ website. For more information, contact [Name] at identity@dia.govt.nz.
Related Resources
- Using Documents as Evidence
- Authenticator Types
- Contact the Department of Internal Affairs at identity@dia.govt.nz
Last Updated: 20 March 2023