How Finance Industry Can Ward Off Identity Frauds?

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How Finance Industry Can Ward Off Identity Frauds?

Sarah Dawson, CFO Tech Outlook | Friday, May 27, 2022

The banking industry is on the lookout for concrete measures that can mitigate synthetic identity fraud.

FREMONT, CA: Financial fraud detection is temperament to the institution or company that is facing the issue. For the finance industry, which is now at risk from synthetic identity fraud, building up detection capabilities is becoming indispensable. identity frauds are typically not reported that often, unless it’s a huge or irreplaceable loss, making the banks suffer little by little over the years. Thus, it is high time for banks to develop immunity against identity frauds.

Sophisticated technologies have enabled the creation of fake identities that are difficult to differentiate from authentic ones. Some of the counterfeit identities are so well-crafted that they can filter through checks and verifications during the onboarding process. Sometimes these identities pass KYC as well. But banks can still develop protection through the strategic use of security solutions and advanced technological capabilities.

Top 10 Financial Fraud Detection Solution Companies - 2019Banks can formulate multi-layered fraud-detection strategies for such cases. A team of banking security experts, along with a team of digital security professionals ought to collaborate and come up with relevant strategies that can actually make a difference. Thereafter, banks have to partner with the most suitable provider of technology to build customized fraud detection solutions. From analysis to scrutiny, technology can take care of the frauds related to identity. Besides, a comprehensive identity management solution with built-in security features can also prove to be valuable.

Proper implementation of the fraud detection systems and updated security systems that are linked to multiple law enforcement databases is something banks can think of. Achieving coverage across all the channels of banking is vital. These approaches often result in a lot of false positives that impact revenue. But the use of data to train the automated fraud detection systems can gradually improve the accuracy of risk identification. With a proper balance of customer experience and fake identity detection banks can avoid fake identity threats to a particular extent.

See also: Top KYC Solution Companies

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