Synthetic Identity Fraud: Best Practices to Combat and Prevent the Evolving Threat
As innovations and technological advancements continuously proliferate, the number of fraudulent activities associated with these developments also significantly increases. One type of fraudulent activity, widely known as Synthetic Identity Fraud is costing millions of dollar losses from previous years because of the countless efforts and hours spent to track people who do not even exist. This type of fraudulent scheme involves using a combination of fake personal information, like a minor's Social Security number, to create fraudulent accounts while remaining undetected for years. Thus, creating more room for financial loss and reputational damages.
In this LIVE Webcast, a panel of thought leaders and professionals brought together by The Knowledge Group as they discuss in-depth the fundamentals as well as recent updates in Synthetic Identity Fraud. Speakers will help the audience identify practical tips and strategies to avoid potential risks and pitfalls.
Key topics include:
- Synthetic Identity Fraud: Framework
- Detection and Remediation
- Common Red Flags
- Risks Mitigation Strategies
- Addressing Implications
- What Lies Ahead
Kevin King, Head of Product Marketing
ID Analytics, a Symantec company
- History of synthetic fraud
- how its evolved
- ssa exacerbating the problem
- reversing challenges
- process loopholes
Deshietha Partee-Grier (Dee), AVP, Financial Crime Investigations Unit
- Detection and Common Red Flags
- First Line of Defense
- ID validation
- Address validation
- 2nd Line of Defense
- Transaction monitoring
- First Line of Defense
Sandeep Dhadda, Director, Head of Advanced Analytics, Global Consumer Bank Cyber Fraud Prevention
Synthetic ID life-cycle
- Initialization: Fraudsters combine different PII elements (partly / entirely fictitious) to invent a Synthetic Identity
- Placement: It is introduced into the financial system e.g. by adding it as an Authorized User to an existing credit card
- Creation: Financial Institution reports the AU relationship to Credit Bureau. Latter doesn’t find it on its file & creates a new record for it
- Boosting: AU trade-line inherits the risk performance of the Primary trade-line. This boosts the bureau profile of the Synthetic
- Procreation: Synthetic IDs develop a mature profile on the credit bureaus, start opening accounts with these identities, create businesses owned by these identities and start adding authorized users of their own to create the next generation of synthetic IDs
- Nurture: Fraudster conducts regular transactions to build a sound track record & obtains higher credit limit
- Monetization: Utilizes the entire limit with a sudden ramp-up. Check kiting, disputes etc allows exposure to go beyond approved limit. Monetization is gradually shifting from electronics, brand name merchandise and jewelry to collusive / synthetic merchants
- As Mules for Deposit Accounts: Synthetic IDs are increasingly used to drain out deposit accounts and lines of credit leaving behind a broken money trail
- Recycle: Post a cooling-off window, Fraudster can repeat the process starting from the Boosting step
- Define: Given there is no victim in Synthetic Fraud, there is need to develop a robust proxy definition
- Sizing: For any mitigation effort to be successful it is critical to size the Synthetic related losses; typically are 5-15% of Gross Credit losses
- Trend: Historic time series view is created to understand evolving attack vectors
- Profile: Charge-offs are reviewed against host of on / off us attributes & mined for signatures
- Predict: Historical raw data and engineered features are used to train predictive models
- Pre-empt: They are put in production to decline synthetic IDs at application stage itself
- Clean-up: Models can be trained & implemented to identify highly likely synthetic IDs within the already booked portfolio
- Monitor: On-going monitoring is established to track attack levels as well as effectiveness of predictive analytics
Who Should Attend:
- Chief Information Officers
- Chief Information Security Officers
- Chief Privacy Officers
- Fraud Monitoring Officers
- IT Risk Analysts
- IT Audit Officers
- Data Privacy Officers
- Risk and Compliance Professionals
- Privacy and Data Security Lawyers
- Other IT Security Related Professionals and Interested Individuals
Kevin King has nearly a decade of experience in credit risk and fraud analytics, having served in a variety of roles at ID Analytics since joining the company in 2007 including analytics, business analysis, product strategy and professional services. In each of these roles, King has focused on applying ground breaking analytic tools to the unique financial services challenges, and has directly supported projects at top 10 banks, several “Big 4” wireless carriers, the two leading U.S. satellite television companies, and multiple leading cable and internet providers. A driving force behind ID Analytics’ thought leadership program, he has authored several thought leadership whitepapers on a range of topics spanning fraud, credit and identity risk.
Kevin King has nearly a decade of experience in credit risk and fraud analytics, having served in a variety of …
Deshietha Partee-Grier is an Assistant Vice President at Deutsche Bank in the Financial Crime Investigations Unit combating international money laundering via correspondent banking. She has managed teams in the Fraud & AML sector for Deutsche Bank, VyStar Credit Union, and U.S. Bank involving strategic planning, compliance application & adherence, analytics, claims, transaction monitoring, and investigations. She started her career in the financial services industry in 2009 at JPMorgan Chase.
Dee attended Spelman College & The Ohio State University, and has a B.A. in Economics. She is a Certified Fraud Examiner (CFE) and Certified Anti-Money Laundering Specialist (CAMS). She is currently a board member of the Association of Certified Fraud Examiners - Jacksonville Chapter, a member of the Association of Certified Anti-Money Laundering Specialists (ACAMS), the local Fraud Prevention Association (FPA), and numerous other professional organizations.
Deshietha Partee-Grier is an Assistant Vice President at Deutsche Bank in the Financial Crime Investigations Unit combating international money laundering …
Sandeep Dhadda has held a range of risk management roles over the 15 years at Citigroup. As Head of Advanced Analytics for Cyber Fraud Prevention, Sandeep is responsible for the identification and mitigation of third party risk and synthetic ID fraud as well as protecting Citi’s Global Consumer Bank from large scale financial crimes. Sandeep and his team focus on mining patterns of different existing and emerging MOs for first and third party fraud and in developing mitigation solutions across the customer lifecycle - starting from the application underwriting process through collections capabilities.
Citi’s proprietary mitigation suite of capabilities (Entity Linkage Framework), which was conceived and developed by Sandeep and his team, is a Big Data implementation of network analytics and machine learning models. It has been recognized by several internal and industry forums and won multiple global innovation awards.
Sandeep routinely speaks to key internal Citi stakeholders, regulators and at industry roundtables / forums on the topic of synthetic ID fraud.
Prior to Citi, Sandeep led analytics and modeling services for a boutique consulting firm for over a decade. Sandeep has an undergraduate degree in Chemical Engineering and a Masters in Business Management.
Sandeep Dhadda has held a range of risk management roles over the 15 years at Citigroup. As Head of Advanced …
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Method of Presentation:
General knowledge of identity theft
NY Category of CLE Credit:
Areas of Professional Practice
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About ID Analytics, a Symantec company
ID Analytics is a leader in consumer risk management with patented analytics, proven expertise and near real-time insight into consumer behavior. By combining proprietary data from the ID Network®—one of the nation’s largest networks of cross-industry consumer behavioral data—with advanced science, ID Analytics provides in-depth visibility into identity and credit risk. Every day, many of the largest U.S. companies rely on ID Analytics to make risk-based decisions that help enhance revenue, reduce fraud, drive cost savings and protect consumers. ID Analytics is a Symantec company. Please visit us at www.idanalytics.com.
About Deutsche Bank
Deutsche Bank AG is a German investment bank and financial services company headquartered in Frankfurt, Germany. The bank is present in 58 countries with a large presence in Europe, the Americas and Asia.
The bank has three focal lines of business – the Private & Commercial Bank, the Corporate & Investment Bank (CIB) and Asset Management (DWS).
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. Our core activities are safeguarding assets, lending money, making payments and accessing the capital markets on behalf of our clients.