Events , Fraud Management & Cybercrime , Fraud Summit

Understanding the Identity Risks You Experience, Not the Risks You Perceive - Identity Theft and Synthetic Identity

55 Minutes

Identity theft - or impersonation - is a well-established form of identity risk but first party fraud, and synthetic identities in particular are fast growing and insidious threats that bring with them economic loss for financial institutions, as well as risks of regulatory censure when synthetic identities pass Know Your Customer (KYC) checks during the onboarding process. Learn why organizations across the KYC landscape need to understand the nuanced threats if they are to develop coherent tools remediate them.

This session will answer questions such as:

How to define - and understand - the problem you need to solve for (or why definitions matter!)
Understanding the ramifications of Synthetic Identities to Know Your Customer (KYC) controls
What You need to demand of your institution, your vendors, and your compliance programs.

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Background

The latest form of identity theft is called synthetic identity theft - and it may be the most complicated form yet. Synthetic identities are created by taking a mix of legitimate and fake identifying information to establish new accounts with fictional identities, or create a brand new identity.

Since the new identities use only bits and pieces of a real identity, the crime can go undetected for many years. In fact, according to the Federal Trade Commission, synthetic identity theft currently accounts for up to 85% of all identity theft in the United States.

This kind of fraud doesn't usually affect consumers. The big losers are banks, which get stuck with loan defaults and unpaid credit-card bills that identity thieves leave behind.

In this session, Richard Parry will discuss why organizations need to understand the nuanced threats of identity fraud, especially synthetic ID theft, if they are to develop coherent tools to remediate them.

This session was recorded during the 2014 Fraud Summit Toronto. Additional recordings include: