QEDIT provides a cross-organizational fraud detection service using a cryptographically-secure technique called ‘private set intersection’ to help insurers identify instances of fraud similar to the scenarios described above. At its core, private set intersection allows parties to compare two or more data sets and identify matching elements within the sets without revealing any information about the data, except for the fact that certain elements intersect.
As insurers process incoming applications or claims, they are able to use their QEDIT web console or API to upload cryptographic commitments about specific, preselected line items from the corresponding documents such as the applicant’s/claimant’s name, the date and value on an invoice, or answers to certain background questions on an application. These commitments are generated by one-way functions that cannot be decrypted to reveal the original data. Private, proprietary data never leaves the insurer’s network and the cryptographic commitments stored by QEDIT are safe from hacks, leaks, and brute force attacks.
Once the cryptographic commitments are uploaded, they are instantly scanned for discrepancies on applications and matching claims. If fraudulent activity is detected, the accounts are flagged and the relevant insurance providers receive a notification so they can take action in accordance with their risk management policies. Insurers using QEDIT are able to identify instances of fraud that are only detectable in a collaborative setting, and they’re able to do so while preserving the privacy of users and remaining compliant with data privacy regulations.
