SPONSORED CONTENT FROM GUARDIAN ANALYTICS
Synthetic identities combine real and fake identity (ID) information to create a “new” identity. This identity is then used to open new accounts, by which to commit various types of financial fraud and money laundering. This type of fraud is on the rise and the risk is exacerbated as Faster Payments requirements enable more fraud and money laundering activities.
De-risking customer onboarding with Know Your Customer (KYC) identity verification and following the Customer Due Diligence (CDD) rule to ascertain and verify ultimate beneficial ownership, analyze customer relationships and monitoring customer transactions assumes two important things:
The number and scale of recent data breaches provides more data for criminal enterprises to leverage to create synthetic identities and perpetrate fraud. How do we, as an industry, increase KYC efficiency while protecting enterprises and consumers from synthetic ID fraud? KYC teams are and will continue to be faced with real names, locations and dates of birth combined with fake government identifiers, such as social security numbers (SSNs).