The American Banker interviewed executives from the Federal Reserve Bank of Boston and industry leaders on SIF. This cyber fraud is rapidly growing and “Aite Group has estimated that by 2023, synthetic identity fraud could account for $2.42 billion in unsecured credit losses, up from approximately $1.63 billion in 2019.”
Education and collaboration are crucial when it comes to fighting SIF. Jason Kratovil, Executive Director of the Consumer First Coalition, explains that “If everybody is tilting at slightly different windmills, you are collectively not going to do a very good job at combating the problem.”
FiVerity CEO Greg Woolf also emphasizes the importance of education, explaining that “the Fed is looking to educate the market… to help the financial industry.” Woolf explains that the Fed has worked on a standard definition “so they can get that consistency” needed to combat SIF. This education will equip banks and credit unions with the knowledge they need to differentiate synthetic identities from legitimate customers and other types of fraudsters.
Not only has FiVerity participated in educational efforts to fight SIF, but we have contributed a solution in the form of our machine learning that detects more than 50% of SIF accounts that slip past rules-based systems. Detecting SIF provides insight into the patterns that fraudsters use and enables financial institutions to recognize their evolving techniques.
Moreover, FiVerity’s Intelligence Sharing Platform creates an advantage for banks and credit unions by allowing financial institutions to share knowledge — without disclosing personally identifiable consumer information — and prevent further losses.
Want to learn more about the Fed’s efforts to fight synthetic identity fraud? Join FiVerity for an exclusive interview with Mike Timoney and Staci Shatsoff of the Secure Payments group on June 8th, 2021.
Register here: https://fiverity.com/cfi-webinar-2/