A report from Fedral Reserves (2019) stated that synthetic identity is one of the fastest-growing fraud in the united states. A synthetic identity is a form of planned crime which is developed to overcome the security measures of a business. Often this crime remains untraceable because of its nature and execution. But facial recognition software could prove to be a feasible solution due to the technology and protocols used in such software. A criminal could steal someone’s identity card number or a social security number (SSN) but it is not possible to steal someone’s face.
Before we move into the depth of facial recognition technology and how it can detect synthetic identities, let’s know a bit about synthetic identity fraud.
Synthetic identity fraud is a planned crime. The criminal uses a mix of legitimate and fake information to make a synthetic identity. This crime is not like typical identity theft. The criminal gets his hands on an unused ID card number or a social security number and attaches fake name and address, etc. with it to makes a fake identity document. Once the synthetic identity is developed the criminal uses it to open an account with businesses, most probably, banks, and other lending businesses.
Usually, they open the accounts with the lenders who take in high-risk customers (those with a low credit rating or less credit history). Now the criminal gains the confidence of the lender by making short purchases and swift payments. Later, he gets a huge amount from the lender and never shows back. The lender is left with the loss because it could not trace back the criminal, as fake name and address, etc. are used. The only legitimate information is the stolen SSN or ID card number. Federal Reserves report found that children were the most common victim of synthetic identity theft.
The untraceable nature of this business has made it a headache for businesses and regulatory authorities. McKinsey found that the average cost of synthetic identity fraud is $15000 and it costs lenders $ 6 billion in 2016.
Face recognition software is a feasible solution to fight synthetic identity fraud. The process and technology used in this software leave no loophole for the criminals. The basic technology of face recognition is enough to detect fake identity.
The best part about face recognition software is that it operates in real-time. The end-user is required to make a small video or a selfie in real-time. The software detects the photoshopped or googled images.
3D depth perception technology detects the liveness of an image and detects minor facial features and facial movements. In case a fraudster tries to do verification through a paper-backed or a photoshopped image, the system detects it within seconds. Face verification technology verifies a person within a minute and also it is hassle-free for the business and the customer. Using an easy to integrate face verification software is a feasible and cost-effective solution to eliminate synthetic identity fraud.
To wrap up, synthetic identity is a form of modern planned crime. Businesses need to adopt a proactive approach to this fraud. It is untraceable due to its nature. The identity documents should be verified before onboarding a customer. In case the criminals have stolen an identity document or forged the information on it, the software detects it. Also, face verification covers all the loopholes in the security measures by verifying the person in real-time. So, a face verification software that offers identity document verification in one pack is an all in one solution to eliminate synthetic identity fraud.