In the US, synthetic identity fraud (SIF) criminals are combining information taken from social media and compromised identities available on the dark web to create entirely new, fraudulent IDs which are then used to infiltrate consumer lending institutions and steal billions of dollars. In 2020 alone, SIF cost US financial institutions $20billion. To date, banks have failed to effectively fight back due to uncertainties about what information they can share without violating privacy regulations or security rules. This has become such a big problem due to fraudster collaboration, however, if cyber security companies begin to work together, there will be a higher chance of eradicating SIF.
Greg Woolf is the founder and CEO of FiVerity. A serial entrepreneur, Woolf has more than 20 years of experience founding and running fintech companies. He moderates AI industry groups with more than ten thousand members and a think tank that has advised Congress on using AI to modernise financial crime detection. Woolf was awarded “IT-CEO of the Year” by AI Global and “FinTech Innovation Winner” by the Financial ManagementAssociation. With this wealth of experience Woolf explains the importance of collaboration to make sure innocent consumer information is not compromised as the fight against fraudsters continues:
Greg Woolf, founder and CEO of FiVerity
Although banks have long expressed interest in collaborating with each other and law enforcement to combat fraud, a variety of legal, competitive and logistical concerns have held these efforts back. Despite legislation such as the Patriot Act encouraging information sharing, financial institutions have several concerns about collaboration, including:
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