DB2 Entity Analytic Solutions

1. How do we shorten the distance between detect and preempt? DB2 Entity Analytic Solutions Darren BaldwinWorld Wide Manager Entity Analytics Answering the Question “Who is Who?” “Who Knows Who?” and “Who Knows Who Anonymously?”

2. Financial Services Companies have some BIG issues! Collusion between employeesand 3rd parties accounts for 48% percent of all fraudulent activities. American Banker Inability to uniquely identify clients is the leading cause for failure of CRM applications. Oddly enough, almost the same information and analysis is needed for AML and CRM – Name, Address, structure and names of family members and business relationships… Gartner Group, BCS Banking Analytics Paper ID theft loss = $221 billion Growing at 300% ($2 Trillion by EOY 05) Aberdeen Group Criminal’s are using “Front” Business and “Ghost” Employees to appear normal - IBM BCS ? Money Laundering = $600 billion to $1.8 trillion of the world's annual economic activity Gannett News Service 25% of Americans say it’s okay to defraud insurers Accenture 42% of all ID theft is credit card fraud MasterCard International

3. What Does the Entity Analytic Solutions Family Do? 1. Disambiguate and aggregate Identities A;lsdkfjpasld;kfjaf;lkasjfd;asldkfjasd;flksajfd;lwkejfew;lkrewoiruewporiuew;oisad;lksd;lkasdcmlaskdmcasd;lkasdfja;sdlfkjasdf;lksajdf;lkjsadf;lkja;dslksjdf;lklllllsadfddd Asdflkjlsakfdja;lsdfkjsa;lfdkjasf;laksjfweoewij2;l3kj32rl23krj32lrkj32r;23jr2o3rij23roi23jro23ijr32orij23ori2j3ro23irj23r;lo32jr23fri2r3o2i3ro32irjoijoijwefoijaf;laksdjsadflkjsa As;dlfkjasdf;lsakdfjwefowiefjwe098ew8u2332oir321r1ru032103289r320o23awofepihwfepoihafpowihwe98hwaefoihewfpoihfKJ><njCAkjancdaslkdvosadivnpowaivcoewieie Adslfkj21019221j12lafjas;lfkajsf;sadf092jf091jf1lfjafdlkajsfd;laskfdjasld;fkjsad0f9asjfd02i32jf;lkanfd;alskfdjasdf;lkjsad;lfkjasdf0-9dsafj-sa9dfjasdflkj;lkalsfdkj;lsadkjfasd;f Qkejroqwejroiwqerjqwoeri;jewqwqoirwqe987rewq0987rewqqw9re87qwre098723r923l23kj4;l32k4nm324;lk32n2;l3kn324;lkna;lkaaef;lknawfoiewfew;lkfnewf;l;lewkfnflknl ! Alsdkfjasfofjqofjwaf;oiwefoweifjo320230230r9jr32pojas;ldka;lckamds;lkasmdf;alsdkfjsad;flkajsdf;laskdjfwopeijewfpoiwjef;lksadf;lsakdfjasldfkjsad;lfkja;sldkfldsafkjldskj 2.Relate Disambiguated Identities, reveal obvious and non-obvious relationships, generate real-time alerts. ! ! Asdfl;kajewq;lfkjweoijwefoweifjweofijwefoiwejfoewiru320983210932148lsakadlkasdmcas;dlfkjdsag;lkajsdsadlkjasdg;lasdg;lkasjdg;laskdjg;lkjsadg;lkjsad;sadddddddd As;dflkjasfwefklwjeroiewuroewiru2309321409sdflkac;lakdscas;dlfkajdsf;laskdjf;asdfpowefwefoijewf;lksajdf;laksdjfasdofiweoiwjef;ewf;ljweflkjdsflkjdsaflkdddddddddd A;sdlfkjasfqworiwqureowqiru19328913282112lkjwa;lfkjasd;flkajsdf;lakdsfjdsalfkjasd;flkjsadf;lkasdjf;alasdfasdflkjsadf;lkajfsd;lkjfds;lkasdfowqerwqoirpoirewquweoisadfk Asdf;lkjasdf;laskdfjewoiurweoric;kc.nC<Mnsadclkjadsf;lkasjfd;lksjfda;lksadfnlkasdfasdfldsaf;lkajsdf;lksajdf;laksjdf;laksdjfweew98320913201298ewlkflkjlldsaflaslddldld = = 3. “Anonymyze” all identities to protect privacy.

4. EAS’s Powerful Identity Recognition Platform

5. Actual picture of one of our Customers Complaint Department! Some of our Clients Ultimate Who’sWho and Who Knows Who Systems Subject based Analysis – Many Degrees Employee, Vendor and Customer Relationship & Collusion Detection Know Your Customer Compliance And Customer Disambiguation 100’s of systems and 100 Million Records

6. Mark Smith11 Burmuda RdHudson MA 01510Tel#978-368-5312SSN# 027-70-3732EIN#097376156DOB 01/03/64 Mark R Smith 10 BermudaHutson MA 01510Tel#978-368-5312 Cell#978-368-3555LIC#1702188346PPN# 086588345 Randy Smith11 BurrmudaHudson MA 01510TEL#978-368-6423LIC#1702188364EIN#097376156DOB 01/03/65 Mark Randall Smith101 First St, APT 3689Little Rock, AR 72202Tel#501-654-5404Cell#978-368-3555LIC#027703732DOB 01/03/64 When You Don’t Know “Who is Who?”, You Don’t Have a Complete Picture of an Individual! Identity Resolution detects and identifies a single person from multiple sources even if the data is insufficient, incorrect or fraudulent Profile 1 Profile 2 Profile 3 Profile 4

7. Step 2 Address Standardization Step 3 Data Quality Step 4 Data Enhancement Entity Resolution Step 1 Name Standardization Entity #14465 NAMES Mark Smith Mark R Smith Randall Smith Mark Randy Smith ADDRESSES 11 BermudaHudson, MA 0233410 Burmuda St.Hutson, MA 01512 P.O. Box 12743Clinton, MA 01510 ADDITIONALDOB: 12/13/71Phone:(508)278-6019 (978)365-6631 (501)661-8044 Work: Zycast Int. Silverback Kinear Enterprise Entity ID Resolution Data Silo 1 Data Silo 2 Data Silo 3 Master Consolidated Unique Entity ID/Unique person Identifier • Consolidates Multiple Systems Entity/ID’s • Generates Unique Entity ID • Full Data Attribution Retention & Resolution • Enterprise Entity Analytics • Continuous, real-time, validation and correction of ingested data PII = Personally Identifiable Information

8. Name Location Identifiers Attributes • Last name • First name • Middle name • Other name parts • Generation • Organization name • Aliases • Gender • Address 1 • Address 2 • Address 3 • City • State/province • Postal code • Country • Latitude/longitude • Driver’s license • Grantors • Beneficiaries • References • Emergency contacts • Account Number • Person ID • Tax ID • Business ID • Phone • Email address • … user defined • Acct Number • Interactions • Date of birth • Circa date of birth • Nationality • Place of birth • Height • Weight • Eye color • Hair color • Dependents • … user defined Identity Resolution – Example Data Points

9. Mark Smith Entity #144465 The EAS Identity Repository – Identity Folder Entity #144465 Randall Smith Mark Randy Smith Mark R Smith Mark Smith

10. Introducing, Relationship Resolution Identify Relationships between Entities Degrees of separation for Investigation Identity Deltas and Contagious Data Association

11. Step 2 Address Standardization Step 3 Data Quality Step 4 Data Enhancement Entity Resolution Step 1 Name Standardization Data Quality DataEnhancement IdentityResolution NameStandardization AddressHygiene ADDITIONALDOB: 12/13/71Phone:(508)278-6019 (978)365-6631 (501)661-8044 Work: Zycast Int. Silverback Kinear NAMES Katherine D. Green Kate Mills-Green Katie Green Kate MillsKate Green Kate M. Green ADDRESSES 4737 Cimarron Dr.Easton, MA 023341 Bourne St.Bolton, MA 01512 P.O. Box 12743Clinton, MA 01510 Step 6: Knowing “Who Knows Who?” Extends Identities Beyond 360° Relationship Resolution • Identifies links and identity relationships • Enables powerful case management & analytics • Built on Entity Analytics platform ADDRESSES P.O. Box 1227 Denver, CO 80112 415 Lancaster St Worcester, MA 01609 ADDITIONALDOB: 07/03/69 Phone:(303)778-1210 (508)278-6019 Work: U.S. Air Force Wife: Kendra Clark NAMES Jack Smith Jack Black Jack B Nimber Jack B Quick Jack Rabbitt

12. Kate Green Tom Jones Joe Albert Phone: (614) 507-5312 Account: 200898 Addr: 984 Mango Addr: 123 Main St. Phone: (978) 365-5312 Addr: 456 First Street Phone: (714) 721-4848 Relationship Resolution and File Folders Kate Jones Entity #144465 Account: 200898 Phone1: (978) 365-5312 Addr1: 123 Main St. Addr2: 456 First Street Grantor: Joe Albert Fraud File, OFAC, Bad List & Unauthorized Use Data

14. OFAC Heat Lists World Check Business Directory Lists of Interest PEP’s Data Quality DataEnhancement IdentityResolution NameStandardization AddressHygiene Customer Database Relationship Resolution Pipeline Process Association Lists & Enterprise Interactions Relationships Relationship Resolution

15. Recently Added: Suspected Fraudster Mrs. Linda Sweetheart 1067 6th Ave Clinton, MA 01510 Tel: 376-557-5050 LIC#ATB8576-873Incedent happened: 07/09/04 Mrs. Kate Greene1 Bourne StClinton MA 01510Tel#978-365-5312DOB 07/08/64LIC#1702188364 Checking Ms. Cat Greenspan 1067 6th AveClinton MA 01510TEL#614-389-6412 LIC#170UYRE-8364 DOB 07/09/66 Credit Card Ms. Kathy Greenwall 1 Wallace AveClinton MA 01510Cell#788-365-4431 LIC#170UYRE-8364DOB 07/09/63 Savings Banking Branch Manager Mr. Earl Easygoing 3458 Waggoner RdClinton MA 01510Cell#788-365-4431 LIC#ATB8576-873DOB 07/09/78 Mrs. Kathleen Greenwood10 Sycamor StClifton MA 01510 Tel#614-389-6412 LIC#7102188364 Wire Transfers Banking IBM Entity Analytics: Banking Example Fraud Networks ? ? Branch Phone Logs (07/09/04) 978-365-6631 614-876-8456 376-557-5050 949-657-8128 513-876-2853 217-314-2127 Enterprise Multi-Channel Trust Verification ? Employee Collusion ? WHO KNOWS WHO? WHO IS WHO?

16. FDIC Member Bank $$$$ Have Dinner at Great Restaurant Transactions However, No one knew that the Waiter used a “Skimmer” to steal Their credit card information He spent a lot with their Credit Cards…… $$$ $$$ $$$ $$$ $$$

17. $$$ $$$ FDIC Member Bank $$$$ Excellent question lets find out!!! Have Dinner at Great Restaurant $$$ Transactions $$$ $$$ However, No one knew that the Waiter used a “Skimmer” to steal Their credit card information He spent a lot with their Credit Cards…… WHERE DID THESE CHARGES COME FROM?!?!?!?!

18. $$$ $$$ FDIC Member Bank Excellent question lets find out!!! $$$ $$$ Joint Investigation $$$ Same Waiter Fraudulent Merchant Co-location

19. Introducing, Anonymous Resolution Protect individuals PII* Share data safely from enterprise-to-enterprise Original/Clear-Text data remains with owner *PII - Personally Identifiable Information

20. hd745jf94djd859600 dmhdi5667390dj00dsj k00dHji556309hs539 2hhs8sK0094gsu5hi 94kkd0d0f0084hhds utqapd9023kjheuia1 1127s9sndk00di xUg00y8880236jslhdu0dmhdi5667390dj00dsj k00dHji556309hs539 2hhs8sK0094gsu5hiaasdasdfa1231LKJSDF//asdflkj tr5y9hU000kd G563ksHjd55603j d98hj4jkf9jt0089ge hyud98kkdh00Hydk8 880h332jd78001xug 00y8880236jslhdu000 12g6743kd85hf06h7x08 4hdf75jc4539fhd89/SDF G563ksHjd55603d98ghhj4jkf9jt0089geasdf//SKJDkljasdlkjasdkljaf’231254sDDSDFLJK1asd21as3df32 Tom Sinclair 4909 Battery Lane Bethesda MD 20814 Acct# 97836553122 Acct# 00303450009 Tel# 501-603-0882 Frequent Flyer: 5678965 Kate Green 1 Bourne St Clinton Mass, 01510 VIN# 585789543 Frequent Flyer: 5678965 Tel: 501-247-6645 PPN: 995027890 hd745jf94djd859600dm hdi5667390dj00dsjk00d Hji556309hs5392hhs8s K0094gsu5hi94kkd0d0f 0084hhdsutqapd9023kj heuia11127s9sndk00di xug00y8880236jslhdu0 tr5y9hU000kdG563ks Hjd55603jd98hj4jkf9jt 0089gehyud98kkdh00 Hydk8880h332jd78001 xug00y8880236jslhdu0 0012g6743kd85hf06h7 x084hdf75jc4539fhd89 Anonymous Resolution Determines “Who is Who & Who Knows Who… Anonymously” DB2 Anonymous Resolution allows multiple parties to safely and securely share & compare “anonymized” information assets.

21. One-Way Hash Value (MD-5) cbd034409c22929518fa494f99dc9964 INPUT VALUE OUTPUT VALUE The One-Way Hash One-Way Hash Function (e.g., MD-5 or SHA-1) Mark Smith Result: An irreversible digital code (Not encryption) Use: Fundamental building block used in modern cryptography

22. One-Way Hash Value (MD-5) 56429da8c660e5b1f35e2b2f8ad27c91 One-Way Hash Value (MD-5) cbd034409c22929518fa494f99dc9964 The One-Way Hash – Infinitely Sensitive INPUT VALUE OUTPUT VALUE One-Way Hash Function Mark Smith One-Way Hash Function Mark R Smith

23. No Identity Data is in the Clear, Nothing is discarded What’s in this Database?

24. Data Source Anonymization Bank C Suspects Bank B Suspects Bank A Suspects Anonymizer Anonymizer Output Output Output

25. Anonymous Resolution Ingest Real-time ALERTS Anonymized Output processed by the Resolver Output Output Output Bank A, B and C are all suspicious of the same guy!

26. DB2 Entity Analytic SolutionsSolution Portfolio Overview Thoughts? Darren BaldwinManager, WW Sales Entity Analytics