Here's how 3 Innovative Firms are Collaborating to Curb Identity Theft in the Digital Space
As identity fraud continues to plague the online space, a firm called Socure has achieved a much-needed victory against fraudsters, by successfully eliminating a staggering 204,536 synthetic digital identities from the U.S. economy in 2023. It pulled this off through the Sigma Synthetic Fraud product, and has effectively prevented more than $3 billion in potential losses.
What is Socure's Sigma Synthetic Fraud?
Socure attributes its success to the cutting-edge Sigma Synthetic V4, a product that harnesses the power of third-party and network feedback data to unveil patterns linked to synthetic identity fraud. The newest model incorporates "proof of life" data sources, including property records, driver’s licenses, and educational data.
Synthetic identity fraud, a nefarious combination of stolen, altered, and fabricated Personally Identifiable Information (PII), poses a significant threat to sectors including the gig economy, small business banking, telecom, cryptocurrency, and challenger banks.
Scienaptic AI and SentiLink join the fight
In a collaborative effort to combat synthetic identity fraud in digital lending for credit unions, Scienaptic AI and SentiLink have introduced a groundbreaking product. Research from SentiLink indicates that as many as 1.8 million consumer credit accounts may have been compromised by synthetic identity fraud in 2023 alone. Over 30 percent of these accounts were at risk of major delinquency or charge-offs, with average losses ranging from $8,000 to $10,000 per incident. The tools developed by Scienaptic AI and SentiLink play a crucial role in helping credit unions identify fraudulent applications, thereby preserving the integrity of the lending process. These tools also offer a unique solution for existing members to re-verify their identities when changes in Personally Identifiable Information (PII) occur on already existing accounts.
This collaboration not only enhances the safety of financial institutions but also streamlines the onboarding process by approving more members securely, without introducing unnecessary friction.
The ongoing battle and future prospects
As synthetic identity fraud continues to evolve, these innovative solutions from Socure, Scienaptic AI, and SentiLink serve as a beacon of hope for industries grappling with the increasing sophistication of fraudulent activities. The collaboration between Scienaptic AI and SentiLink, specifically tailored for credit unions, demonstrates a strategic approach to addressing the unique challenges faced by financial institutions. The year 2023 has highlighted the urgency of adopting advanced technologies to safeguard against synthetic identity fraud. Socure's proven track record in eliminating digital identities, paired up with the synergistic efforts of Scienaptic AI and SentiLink, helps the financial landscape to be better equipped to carry out identity verification in a hassle-free but at the same time secure manner.
As these technological advancements pave the way for a more secure future, the collective efforts of Socure, Scienaptic AI, and SentiLink underscore the importance of collaboration and innovation in the ongoing fight against synthetic identity fraud. The battleground may be changing constantly, but with these cutting-edge tools and solutions, the finance sector is better prepared to deal with any new tactic that fraudsters deploy to carry out identity theft.