FEATURE
Additionally , the integration of face and voice biometric recognition can enhance the accuracy of identity verification . Inconsistencies in the information gathered should trigger additional verification steps , including in-person document verification .
KYC enhancement
KYC procedures need to evolve from fragmented , rule-based solutions to more robust and dynamic models . Financial institutions should develop synthetic ID risk models based on a combination of internal and external data sources .
These models should enable real-time customer risk assessment and scoring . Frequent checks of the validity of customer information should be scheduled . The system should also support timely rescoring to detect and deter synthetic identity fraud more effectively .
Given the evolving nature of fraud , the chosen KYC solution should offer the flexibility to create and customise KYC forms , allowing for the incorporation of specific risk categories related to fraud .
Connecting the dots
‘ Joining the dots ’ is essential in identifying synthetic identity fraud . Financial institutions should implement tools capable of detecting and scoring fraudulent identities by correlating demographic identity information with various contextual and historical data sources .
These sources may include profile information , account activity and credit profiles . Detecting duplicates or mismatches in key identity fields like name , address , or birthdate across different sources is critical . Such inconsistencies could be indicative of synthetic fraud .
Marie-Christine Diaz , Business Development Manager / Payments-EU at Eastnets
Using advanced technologies
As synthetic identity fraud becomes more sophisticated , financial institutions must harness advanced technologies to stay ahead . Artificial Intelligence ( AI ) and Machine Learning ( ML ) can be pivotal in fraud detection and prevention .
Despite the lack of historical synthetic fraud cases , AI and ML can analyse data from various sources and identify anomalies . These technologies can significantly reduce false positives , enhance-risk scoring accuracy , and streamline data-driven investigations .
Integration is key
Addressing synthetic identity fraud requires a multifaceted approach . One key component is eKYC , a tool that serves as the foundation for authentication . This involves various digital identity verification methods to ensure the person is genuine .
Complementing this is sanctions screening , operating in real-time to crossreference individuals against sanctions lists and blacklists , acting as a crucial barrier to stop fraudsters from slipping
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