OPTimum FraudX

Machine Learning to Uncover the Fraud 

The Problem

Most states have an entirely self-service ER registration process that involves minimal if any staff intervention, which allows fraudsters to create fake accounts that they control easily.

The Solution: OPTimum FraudX

On Point Technology’s FraudX solution scores and ranks employers based on numerous attributes that have been proven to identify Fictitious Employers. The higher the FraudX score, the more likely that the employer is fictitious and being used as a front to receive unemployment money fraudulently.

FraudX allows UI agencies to efficiently manage their fraud detection workforce by scoring results, a feature that enables investigative resources to prioritize cases with the highest FraudX score. In a recent FraudX deployment, over 80% of the top FraudX scores were identified as Fictitious Employers.

Fictitious Employers have become increasingly common as fronts to receive unemployment insurance funds fraudulently. On Point Technology FraudXTM addresses this problem head-on and ensures that Fictitious Employers are detected early, minimizing trust fund losses, reducing employer pool charges, and helping safeguard the true-identity owner.

How Can SWAs Benefit from FraudXTM?

  Investigations: Gives staff a targeted list of fake employers/claimants to investigate.

  Collections/Overpayments:  Catches fraud early and quickly, minimizing payouts of claims and the value of OP amounts due.

  Post Claims Audit: The product is not part of the claims-taking lifecycle, but instead provides a post-audit that uses tax and benefits data – including claim information – to identify employers most likely to be phony. 

   ID Theft Verification:  Once a fictitious employer is identified, the likelihood increases that the SSNs of the “employees” have been stolen. 

Key Features

  FraudX provides investigators with the ability to drill down into the data to look for patterns and expand leads

   The attributes used by the FraudX algorithm, as well as the relative weights that are given to individual attributes, can be adjusted based on individual state characteristics as well as the accuracy of results returned as the report is run. 

  For ease of use, the FraudX system scores and ranks leads while putting numerous pieces of data at your fingertips, leading to quick and easy to manage investigations.

   FraudX is easily scalable and so not hampered by an increase in claims (or ER registrations).

   FraudX scoring is adaptable, allowing easy tweaking to account for a state’s particular ER set or based on what data it sees from its claim applications and employer registration processes

Streamline Activation

SWA’s can have an instance of On Point’s Identity Proofing application activated and stopping fraud within days. With OPTimum Integrity Cloud, months-long implementations are a thing of the past. Our suite of products is architected for rapid days-long deployment within a state workforce agency. 

Hosted or On Premise

OPTimum Integrity Cloud is designed to allow the Identity Proofing layer to be delivered as an OnPoint-hosted cloud solution utilizing AWS FedRamp on GovCloud or as an “on-premises” state-based public or private cloud solution. An OPTimum AWS hosted cloud solution can be made available almost instantaneously and can rapidly scale up as the state’s claims load increases. If an on-premises deployment is preferred, we will work with state internal teams or IaaS providers to assess and set up the required environment, undertake the required knowledge transfer, and deploy the solution with a high level of efficiency and quality.

Network Diagram

Act Now And Save Millions

Fraud continues at record levels while trust funds are dangerously low and being depleted at an unprecedented rate. OPTimum Integrity Cloud with Identity Proofing will have an immediate impact on stopping fraud. Book a virtual demonstration today by calling 866.482.0189 or emailing info@onpointtech.com 

We look forward to demonstrating how OPTimum Integrity Cloud can help transform fraud detection in your state.

Why On Point Technology? 


Over our thirty-plus years of existence, UI has been and continues to be 100% of OPT’s business – it is all we do. Our accomplished team enables us to serve our clients holistically and expertly.

STATE A – Benefits and Tax ID Theft FraudX
— During a controlled pilot and estimate
$2,500,000 of potential Overpayments were detected
$19,000,000 OP overpayments prevented

Put Our Expertise To Work For You

From Business Process Analysis to Data Migration,
we have a full range of services to help deliver the highest return.