New York-based digital ID solution provider Socure has shared plans to first remove 100,000 synthetic identities from the U.S. financial system, and the rest by 2026.
The announcement builds on a recent report published by the company and suggesting synthetic identity fraud may cost businesses almost $5 billion in 2024 if not contained. The data also highlights the increasing use of synthetic identities as money mules. Between one and three of every 100 of the 169 million bank accounts opened in the U.S. belong to a synthetic identity, typically a blend of fake and real elements to create an identity for a made-up individual.
“Synthetic fraud behaviors have changed drastically following the pandemic and are now attacking deposit accounts at higher rates than any other time in history, where they are being used as money mules to fuel fraudulent money movement,” explains Mike Cook, VP of fraud solutions at Socure.
“Our goal is to completely eliminate synthetic identities from the U.S. financial system by 2026. This is an eminently achievable goal by partnering with the industry and government agencies. Today’s target of 100,000 synthetic identity takedowns is just the beginning.”
The company intends to reach this objective using its Sigma Synthetic Fraud solution, which leverages machine learning (ML) techniques and human expert-based supervised analysis to mitigate evolving and complex synthetic patterns.
According to Socure, Sigma Synthetic Fraud is not only able to stop synthetic fraud attacks but also creates a lower-friction consumer experience.
“Bad actors have been given free rein for too long, and it is high time to eliminate these mules,” Cook adds.
Socure Account Intelligence seeing first successes
In a separate announcement, Socure also shared figures earlier this week connected with its Socure Account Intelligence (SAI) solution.
Writing in a blog post on Tuesday, the company’s director of product marketing Emily Saitta says SAI, which the firm unveiled last year, has already been used successfully by several businesses, mainly thanks to the fact that it helped them achieve compliance with the new WEB Debit rule at Nacha (National Automated Clearinghouse Association), which manages the payments infrastructure in the U.S.
“SAI not only supports this requirement, but it goes a step further to confirm that the named consumer or business is the rightful owner of the bank account,” Saitta writes.
“As a result, Socure has been recognized as a leading vendor by Nacha, who named the company as an official Preferred Partner.”
More information about SAI’s technical capabilities and partnership options is available on the Socure website. The updates come days after the company joined the Fido Alliance.
Article Topics
biometrics | digital identity | financial services | fraud prevention | identity verification | KYC | Socure | synthetic identity fraud
