THANK YOU FOR SUBSCRIBING
The banking industry has started investing in technological tools including Artificial Intelligence chatbots. Though the amount spent on technology is high, fraudulent activities haven’t reduced. Ironically, the frauds have increased in the banking sector. Every mid-sized to large firm has been facing identity fraud. The identity fraud includes fraudulent activities like hacking, security or data breach, and synthetic ID fraud. Rather than using stolen credit cards, the frauds have indulged in using synthetic ID cards. They use synthetic cards to draw credits.
In the U.S., synthetic card crime is high, and it leads to bigger losses to the banking industry. The largest synthetic ID ring has been detected that racked up around $200 million using 7,000 synthetic cards and 25,000 credit cards. In order to stop the synthetic card fraud activities, focusing on ID checks are mandatory.
Frauds create synthetic ID by providing a combination of fake and original information or fake information. When the bureau has identified the fake information, it rejects the application. Though the application is rejected, the credit file has been created in the synthetic ID. This is the entry gate for many fraudulent activities. If the verification process becomes tight, the crimes related to synthetic ID fraud may be reduced. By cross-checking the information of the applicants at the entry, the level may reduce the synthetic ID fraud.
Using technology, many fraudulent activities have been detected. But, in the case of synthetic ID fraud, differentiating real and fake synthetic ID is a difficult task. No technology has such codes to detect the fake synthetic ID. In order to put a full stop for the fraudulent activities in the banking sector, tightening the identity forum using increased security levels is mandatory. Authentication methods include fingerprint recognition, puzzle solving, and rules-based filters.
Today, the banking world has also become alert. They have started to watch the transactions of their customers keenly. If there is any susceptible transaction occurring in the particular account, the bank holds the particular transaction. After the proper checks with the respective account holder, the transaction will be processed further. Advanced identity techniques have been involved in the banking industry to help in overcoming fraudulent activities.