Onfido, IDValidation partner to lower risk of synthetic identity fraud

Onfido has teamed up with IDValidation to help reduce the risk of synthetic identity fraud.

Instead of a fraudster stealing the entire identity of the consumer, synthetic identity fraud relies on them fabricating one element of an identity, typically their social security number. Once completed, the criminal is able to access goods and services, and even open bank accounts or other lines of credit.

The Federal Trade Commission estimated there are around 10 million more profiles on the system than there are consumers in the US.

IDValidation is a consent-based social security number (SSN) verification product which lowers risks of synthetic identity fraud by scanning official source records to ensure valid SSNs. The platform offers online validation of personal data such as name, date of birth and SSN, to give businesses assurance of consumer data.

Onfido uses AI technology to connect this validated identity to a real human. The company requires a user to supply a picture of an identity document and a short-selfie video, ensuring the person’s identity is legitimate and prevents spoofing attempts like sending photos of photos.

IDValidation CEO and founder Paul Campione said, “In today’s ERA of Cyber Crime, Synthetic ID Theft has risen by 8-fold over the last 6 years and now accounts for nearly 30% of all credit fraud losses. Lenders can no longer rely on flawed data sources to prevent fraud.

“Direct Social Security Administration access is required to stop 100% of SIDT. This is why we are delighted to partner with Onfido to create a “bullet-proof” 3-Part ID Verification solution unmatched in the industry today. We believe this new revolutionary verification methodology will transform the vetting process into the future.”

Onfido has been on a hot streak of activity this year. Earlier in the month, the company was appointed to the FIDO Alliance board of directors, helping the body to establish global authentication standards.

The RegTech has also formed partnerships with INTERPOL, 2nd Address, and RVshare, helping each of them to improve their onboarding and identifying fake IDs.

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