It is clear that fraud has not only soared in significance and cost but that fraud detection has become increasingly complex today. A recent report by Aloy stated that 35% of financial organizations experienced 1000+ fraud attempts in the last year, while 1 in 10 experienced 10,000+ fraud attempts.
The impact of rogue fraudsters is not unique to the financial industry. Retail saw a 33.5% increase in fraud in 2023, and the Travel and Hospitality industry saw an 89% increase in loyalty fraud. Every industry and size of company has fallen victim to fraud in some way, and at one time or another.
As fraudsters employ sophisticated techniques, organizations have no choice but to stay ahead by leveraging powerful tools and methodologies. One such approach that has gained significant traction is Open Source Intelligence (OSINT), and in this post, we explore how OSINT can be effectively utilized for fraud detection and prevention.
Open Source Intelligence refers to the collection, analysis, and interpretation of publicly available information from various sources such as websites, social media platforms, forums, and government records.
A strong benefit to OSINT tools is that they act as an instrument for analysts and investigators seeking to anonymously monitor the deep and dark web. These sophisticated platforms enable professionals to gather intelligence from hidden corners of the internet without compromising their identities or intentions. These tools not only provide access to hard-to-reach information but also offer advanced features such as automated data processing, visualization of complex networks, and real-time alerts for emerging threats.
Given that the deep and dark web has become significant hubs for fraudulent activities, with staggering amounts of illegal transactions and data breaches occurring regularly, having access to OSINT tools like Liferaft has become a must.
“The dark web's anonymity not only encourages illegal activities, it keeps many law enforcement agencies largely unaware of its existence, even as it keeps growing as a haven for fraud.”
OSINT plays a crucial role in the fraud prevention cycle by providing robust monitoring, detection, and investigation tools. Here are some key ways OSINT supports fraud detection:
OSINT enables comprehensive background checks on individuals or businesses involved in financial dealings, partnerships, or employment opportunities. By analyzing public records, professional profiles, and online platforms, investigators can identify potential fraudulent activities or criminal ties.
Open source intelligence allows analysts to create detailed profiles of subjects under investigation, potentially revealing suspicious patterns. This digital footprint can include information from social media platforms, blogs, forums, and other online sources.
OSINT tools facilitate the gathering of evidence from social media platforms. Investigators can monitor posts, comments, publicly available messages, and shared content to identify illicit behavior, track communication patterns, and uncover connections between suspects or victims.
As many investment scams occur within the cryptocurrency sphere, OSINT presents tools for investigators to track cryptocurrency transactions, primarily through mixers that break up payments into smaller chunks to hide their origin.
To effectively utilize OSINT for fraud prevention, consider the following best practices:
Embed OSINT checks as a proactive, automated layer of protection within all onboarding, authentication, and transaction processes. This approach helps identify fraud indicators at the earliest stages, stopping fraud before it happens rather than serving as a post-fraud investigation tool.
For maximum effectiveness, combine publicly available information with internal records such as transaction data, personal details, government service accounts, IP addresses, or device metadata. This comprehensive approach helps paint a fuller picture for any investigation.
When conducting OSINT investigations, it's crucial to maintain anonymity to avoid alerting the target of your investigation. Use end-to-end platforms like Liferaft that do the data collection for you or virtual machines to investigate as anonymously as possible.
Create step-by-step procedures for gathering information from various open sources, evaluating source relevance and reliability, and synthesizing it into actionable intelligence.
Standardized workflows ensure consistency, efficiency, and thoroughness across investigations.
Employ visualization tools to map complex networks and relationships. These tools can reveal hidden patterns and associations that may not be apparent from raw data alone, helping to uncover fraud rings or money laundering schemes.
As fraudsters continue to evolve their tactics, the role of OSINT in fraud prevention will only grow in importance. Advanced OSINT tools are pushing the boundaries of what's possible, analyzing digital signals to reveal inconsistencies in users' digital footprints and flagging suspicious behaviors in real-time.
“OSINT is critical to investigations today. I always recommend utilizing OSINT early and often in any kind of engagement, because there’s a wealth of information available through public sources that can benefit any and every type of investigation.”
— Mason Wilder, CFE and research manager for the Association of Certified Fraud Examiners (ACFE).
OSINT is not just a set of tools; it's a game-changer that turns the tables on fraudsters, transforming scattered data into actionable intelligence. By weaving OSINT into fraud prevention strategies, organizations aren't just building walls – they're crafting an intelligent, adaptive shield that evolves with each new threat.