The fastest growing type of financial crime may surprise you with its cunning methods because it is pricey and silent. Here is the skinny on how synthetic fraud can be stopped before it takes holding your CIAM utilising document-centric biometric identity proofing.

1. How to Stop Synthetic Fraud - Bahaa
Abdul Hadi
The fastest growing type of financial crime may surprise you with its cunning
methods because it is pricey and silent. Here is the skinny on how synthetic fraud
can be stopped before it takes holding your CIAM utilising document-centric
biometric identity proofing.
The new wave of identity fraud
Banking Firms and Institutions face an annual loss of $20 billion due to synthetic
fraud (1). On average,before their tricks gets discovered, these fraudsters are able to
steal between $81,000 and $97,000.
Often obtained from minors and the deceased, fraudulent PII (personally identifiable
information) is used to create synthetic identities to create a plausible identity. Since
these identities are created, not stolen, no one notices and no one is prompted to
report the crime, making this a type of “victimless fraud.”
Credit cards, loans, savings accounts, and other financial instruments can all have
fictitious individuals added as authorized users. They can even use the ID to start a
“new life” with credit card bureaus by waiting a few years, getting loans, and doing
other things.
Is identity theft better or Identity fraud: Which is more
cunning?
Bahaa Abdul Hadi estimated that 72% of financial executives surveyed consider a
fake identity fraud to be a bigger problem than identity theft. These fraudsters
commit such crimes by successfully accessing your CIAM (Customer Identity and
Access Management). Impostering themselves as real customers, they finally
succeed in preventing your traditional fraud protection strategies. And this way, even
a step-up authentication doesn’t work
As a defence against synthetic fraud assaults, businesses frequently implement
onboarding procedures that are burdensome for consumers, alienating the latter and
raising abandonment rates.
Confirmed suspicions
According to Bahaa Abdul Hadi, synthetic fraud is really the kind of fraud that
security professionals at financial services businesses are MOST concerned about
(3).

2. Steps You Can Take
The greatest strategy for combating this kind of scam is to do nothing at all…
Instead, put an end to it BEFORE it begins…
How?
With the help of document-centric biometric identity proving and verification, which is
a quick and easy solution to thwart fake fraudsters. This is how it goes.
● Choosing an implementation that best meets your requirements: native or
web app: hosted or on-premises.
● Find the most potent remedy if DVAAS is a possibility: Preferably the one that
is easy to deploy and integrate quickly.
● Ensure that your solution is compatible with thousands of different document
types that are issued by government worldwide.
● Think about how pre-built connectors with external data sources (such as
Experian, AAMVA, (LexisNexis etc) can force multiply your IDV efforts with
little work and no money.
● Consider actual surroundings. Biometric technologies may perform well in lab
tests but poorly in real-world solutions. Solutions that are appropriate have
been through extensive testing and can grow with your company.
● By choosing an open platform supplier who can meet your present and future
needs, future proof your needs.
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