Ecommerce, FinTech, online gaming and retail transactions have set new records in 2020 because, in part, of the Covid-19 pandemic. This “huge online-transactions bubble” has created one of the fastest-growing opportunities for fraud in online businesses.
THE LANDSCAPE HAS CHANGED
Synthetic Identity Fraud (SIF) schemes start with a bad actor combining real and fake personal data to create a new identity, or set of identities. Since SIF comprises a combination of bank accounts, loans, credit card debt, and online transactions that are interwoven among various financial institutions, it’s difficult to spot with conventional anti-fraud methods and systems.
A combination of machine learning and collaboration technology is the best way to defeat the SIF fraudsters who try blend in with good customers in multiple unrelated businesses, securing new identities and accounts, and perpetrating undetected long-running scams.
SIF is showing-up in a wide variety of online businesses and financial services:
- Credit cards and online payment services
- Insurance brokerage
- Ecommerce and online gaming
- Wire transfers and payments
- Financial technology (“FinTech”) companies
- Wealth management and broker-dealers
- Centers for Medicare Services and Health Insurance Exchanges.