Synethic identity fraud, which is projected to cost banks $23 billion by 2030 (and more in operational and reputational costs), is on the rise, and it’s getting more complex with the use of general artificial intelligence and deepfakes by bad actors to carry out attacks. Fraudsters rely on automated tools to create and scale AI-generated fake identities and documents across multiple platforms, exploits gaps in identity verification systems, notably with digital accounts. To prevent the orchestration of ID fraud, banks must work to shore up points of vulnerability and secure digital platforms to guard against data breaches that expose sensitive data that makes it easier for ID theft to occur. Industry practitioners and experts detail why proactive usage of AI/machine learning, strong identity verification, Know-Your-Customer technology-enabled document verification, and tokenization of customer data are required to combat ID fraud.
