5 June What Social Media Tells the World About You June 5, 2017By Jon Coss - Blog Manager General facebook, likes, social media 0 A recent Cambridge University study revealed what many of us already know: each time we “like” a Facebook post, we are revealing something about ourselves. The results of the study were pretty jarring though as researchers found that Facebook “knows” their customers quite well with a just a small number of likes:10 likes: as well as a colleague70 likes: as well as a close friend150 likes: as well as your parents300 likes: as well as your spouseThis data can be used to predict gender, sexual orientation, political affiliations, and other important personal details. In fact, Facebook recently came under considerable criticism for research designed to identify psychological states of teenagers that could potentially be used for targeted advertising.Analyzing social media data certainly presents opportunities for good, such as predicting and tracking influenza outbreaks. In many ways, it offers the digital version of predicting future behaviors, replacing anecdotal methods such as that of a friend of mine who claimed he could predict future prison riots by analyzing canteen purchases (inmates would stock up on supplies anticipating a future lockdown).Regardless of how you feel about social media, it’s important to know that each time you press the enter key, you are revealing a little bit more about yourself – even to people you will never meet. This may not be a bad thing… but it is a thing. Related Posts Social Security Fraudster Captured in Honduras Several months ago, we wrote a post about the self-proclaimed “Mr. Social Security”, Kentucky attorney Eric Conn, who fled prosecutors in the face of a 12-year prison sentence. Conn had concocted a scheme where he bribed a judge and a psychologist to defraud the Social Security Administration out of $550 million. The colorful Mr. Conn made flamboyant claims on television ads and attended events with “Conn’s Hotties” (his words, not mine) to drum up business.After cutting off his electronic monitoring ankle device in June, Mr. Conn had been spotted in various locations around the western United States. Now, it appears his days on the lam have come to an end as Honduran authorities arrested him outside a Pizza Hut restaurant. U.S. authorities are now working to extradite him back to this country.While Mr. Conn’s experience certainly contains elements of humor, Social Security Fraud is a serious subject. Recent estimates peg the annual amount at around $10 billion per year. About half of this is in Mr. Conn’s “specialty” area of retirement, survivors’ benefits, and disability insurance. What the Election Means to Fraud Detection It’s only been a few hours since the election of Donald Trump, and we are already fielding questions about what this all means to Pondera. And while I must confess, like most Americans the election result was a bit of a surprise to me, we have been preparing for change no matter who won the election. This is because any change in administration leads to changes in priorities.If I think back only a decade or so, active government program initiatives included Real ID laws for driver licenses, modernizing voter systems, and prison offender management systems. The Obama administration shifted a lot of focus and funding to Medicaid systems, insurance exchanges, and other health and human services programs.What will the Trump administration mean to a fraud detection company like Pondera? While it’s still too early to tell, President-elect Trump has certainly provided some clues. For example, in one campaign speech he proposed funding his childcare initiatives by targeting fraud in state Unemployment Insurance Programs. And anyone who has been paying attention to the news recently could reasonably expect that voter fraud and the Affordable Care Act will receive some attention over the coming months.Here is one thing that I know for certain. Come January, fraud will continue to be perpetrated against government programs no matter what party or which candidate is in charge. To fraudsters, large government programs are considered a target-rich environment too large to ignore. What do Competitive Running and Fraud Detection Have in Common? I read with great interest the story this month about a woman who cheated her way to a second-place finish in the Fort Lauderdale half marathon. After posting a time of 1 hour and 21 minutes, the website www.marathoninvestigation.com revealed several problems with the woman’s results including: the race statistics she posted to a website were manually entered (versus those calculated by her GPS), a second set of results she posted seemed more consistent with a bike ride, and a zoomed photo of her post race wristwatch revealed that she ran only 11.65 miles of the 13.1 mile race. This evidence led to an admission and apology by the runner.What I find interesting about this incident is how indicative it is of the ever-increasing power of data. While runners collect data to help them train and perform better, it can also be used to uncover cheating and fraud. This is no different in government subsidy programs, like Medicaid and welfare systems. Governments collect data to help them improve service delivery to their constituents, and with modern technologies, the data can also reveal fraudulent anomalies and patterns.Of course, bad actors who want to defraud programs are aware of the increased use of data to catch them. Gone are the days when they can blatantly abuse government systems knowing that the size and complexity of the programs would make it nearly impossible to catch the cheats. In running, who would dare to repeat Rosie Ruiz’s 1980 Boston Marathon “victory” where she was spotted riding the subway with her runner’s bib? Instead, bad actors often “fly under the radar” – stealing smaller amounts over longer periods of time to avoid being noticed. Second place in the Fort Lauderdale Marathon is certainly “under the radar” compared to a victory in the Boston Marathon.So, now that our fraud detection capabilities can catch bad actors who boldly fly above the radar and those who strategically fly below the radar, one would hope that it would lead to decreases in fraud attempts. But I also know that making fraud harder to commit rarely turns fraudsters into honest and contributing members of society. It just makes them work harder. This simple fact provides us with the incentive to continually improve on our technologies and approaches. This is one war we fully intend to win. The Problem With Knowing What You Know I bet you cna’t bvleiee taht you can uesdtannrd waht you are rdnaieg. Unisg the icndeblire pweor of the hmuan mnid, aocdcrnig to rseecrah at Cmabrigde Uinervtisy, it dseno't mttaer in waht oderr the lterets in a wrod are, the olny irpoamtnt tihng is taht the frsit and lsat ltteer be in the rhgit pclae. The rset can be a taotl mses and you can sitll raed it whoutit a pboerlm. Tihs is bucseae the huamn mnid deos not raed ervey ltteer by istlef, but the wrod as a wlohe.The preceding paragraph, which has made its way around the Internet for years, can be really fun to share with friends. However, it also serves as a caution to anyone involved in fraud detection. In many ways, bad actors, knowingly or unknowingly, have depended on how the human mind works to perpetrate fraud schemes. Like the old expression goes, sometimes the best place for fraud to hide is in plain sight.This is especially true in government programs that process massive amounts of transactions and must adhere to a staggering number of program regulations. Traditional “top down” systems can analyze large data sets and find nothing wrong (after all, the first and last letters are in the right place). “Bottom Up” systems, on the other hand, will identify individual problems (the word is scrambled) but may miss the patterns in the data (this entire paragraph is scrambled). A common example of this is the medical provider that always “flies just below the radar” by maximizing claim amounts and frequencies.The best detection processes take both a “top down” and “bottom up” approach. They can identify individual transaction problems as well as identify patterns of bad behavior over time. In this way, you can make the old “80-20” rule work in your favor. 80% of improper payments are likely caused by 20% of program participants. If you only address each individual transaction, you’ll never run out of work but you also never really improve your program integrity efforts.Click here for an infographic on the "80-20 rule". The WannaCry Attack By this time, just about everyone has watched or read a news report about the WannaCry ransomware attack that hit the world’s computer networks on May 12th. Multiple variants of the program will likely attack computers for the foreseeable future, forcing individuals to pay bitcoin ransom or lose their data and causing serious harm to businesses including hospitals and governments.Plenty has been written about the source of the attack and how it works. So, while every “connected” person should read about WannaCry to help protect themselves against future attacks, I don’t see any need to cover this ground here. For me, though, two interesting facets of the story really stand out.First, I find it fascinating and somewhat inspiring that the attack was stopped by a 22-year-old vacationing cyber analyst who goes by the name MalwareTech; with assistance from his colleague Kafeine. These two, and countless others, operate in a world that most of us know almost nothing about to keep our systems safe. It reminds me of the classic Jack Nicholson speech from “A Few Good Men” where he excoriates Tom Cruise for challenging him while he protects our safety. Of course, in this example, there is no evidence of MalwareTech or Kafeine “fragging” any of their tech colleagues.The second interesting point I took form this attack was that most of us could have protected ourselves simply by updating our operating systems and virus protection software. This is a conversation I’ve had innumerable times with my own family. Of course, this also puts software manufacturers in the difficult position of patching years-old operating systems to accommodate those who won’t or can’t upgrade.Bottom line for me: this is just another reminder to remain vigilant and to be thankful for the computer techs who have dedicated their careers to protecting us from those who have chosen to attack us. I hope you can “handle that truth”. Pondera’s High Potential Leader: Amanda Huston Established in 1636, Harvard University is the United States' oldest institution of higher learning and one of the world's most prestigious universities. A couple of weeks ago, I had the remarkable opportunity to participate in the Harvard Business School Executive Education Program for High Potential Leaders. To step foot on this amazing campus filled with brick buildings plush with deep green climbing ivy, you almost immediately feel like you are part of something special (or perhaps inside some Matt Damon/Ben Affleck movie). Stepping foot in the state-of-the-art classroom with the instructor "pit" in the center, surrounded by 100 of the world's most talented and up-and-coming leaders, I wondered if I fit in this group or would have any common ground. My learning group, a smaller team designed to facilitate debate and discussion on assigned topics, included eight talented young professionals; only two originally from the United States. They represented a variety of industries, none of which had anything to do with mine. What I learned by working with this group, is that despite my initial hesitation, we were far more alike than I could have imagined. No matter their business, job title, or Country of operation, we faced so many of the same challenges and experiences in our professional lives. During one group activity, I began to think about how this applied to the clientele I serve at Pondera. Whether it's a small State unemployment program or the Nation's largest Medicaid program, these teams of dedicated professionals face so many of the same challenges and share similar experiences. Perhaps, I could bring them together through the Pondera client network and facilitate cross-state, cross-program sharing and learning. My brain was really starting to kick into high gear now. Reflecting back on my time at Harvard, I decided to focus on the key ways I could translate my experience into benefit for my company and clients. I decided upon three themes: Bold, passionate, inspiring leaders can change everything. No matter if you are managing financial accounts worth billions or a Government employee overseeing a Federal entitlement program, the culture created from these kinds of leaders brings success to the whole organization. Skills can be taught, management can be improved, but make no mistake, there is no substitute for extraordinary leadership. We must find these leaders, and then cultivate and cherish them. Networks are critical to continued learning and success; make time to grow and nurture yours. Your network could be persons within or outside of your organization, family, friends, peers, professional mentors, etc. Networks serve as a vibrant source of creative energy, partnership, and may just offer the solution to whatever challenge you or your organization is facing. Make time in your daily grind to have a coffee, make a quick call, or even share a meal with key persons in your network. Always be willing to adapt and evolve or be prepared for extinction. This is especially true in leading innovation, particularly in the data analytics arena. Fraud schemes change, data sources emerge, programs transform. At Pondera, we can never get comfortable or diminish our aggressive pursuit to lead the way. Governments must embrace the "information age" and transform their processes, modernize their programs, and challenge the status quo. Graduation Comment (0) Comments are closed.