On January 11, the FDIC and FinCEN have opened registration for interested persons to participate in a "Tech Sprint Program" with the goal of providing resolutions for financial institutions and regulators to sufficiently investigate the success of digital identity proofing.
The FDIC's tech lab (FDITECH) and FinCEN are collaborating on the "Tech Sprint" to improve efficiency and account security, minimize fraud and other types of identity-related crime, money laundering (ML), and terrorist financing (TF), and boost consumer trust in the digital banking environment. The purpose of the Tech Sprint is to address the issues connected with compromised personally identifiable information (or "PII"), fraudulent identities, and different means of digitally verifying identification.
Participants in the Tech Sprint are asked to respond to the following question:
- What is a scalable, cost-effective, risk-based resolution to calculate the effectiveness of digital identity proofing to confirm that individuals who present themselves for financial actions remotely are who they declare to be?
What Exactly is Digital Identity Verification (DIV)?
The process of establishing that a person's identification matches the one they claim to have is known as digital identity verification. When compared to each other, the correspondence of one thing to another is a property of identity. It is a collection of distinguishing qualities and characteristics that make an individual unique and irreplaceable.
It is vital when dealing with individuals, especially on the internet, where identity theft is considerably more common than we know. Almost all online and offline processes and procedures involve identity verification in a range of scenarios ranging from opening a bank account to electronically filling out tax forms.
As the financial services business becomes more online, fraudsters and scammers have developed new and imaginative methods of committing financial crimes. According to the FDIC and FinCEN, the increase in "synthetic identities" (a kind of fraud in which someone constructs a new identity from a combination of real and fake information) and leaks and hacks of Personally Identifiable Information (PII) has made determining a person's true identity increasingly tricky.
The goal of the FDIC and FinCEN is to improve customer trust in the online financial services industry, reduce fraud and identity theft, reduce money laundering and terrorist financing, and increase the security of online financial services – all of which have been hampered by the ongoing proliferation of scams. The tech sprint, which is available to nonprofit groups, private corporations, and academia, is open for registration which will be closed at 5 p.m. ET, February 15, 2022.
Comply with Sanction Scanner
In the case of digital identity theft-based money laundering, having the right AML system in place with transaction monitoring that uses all of the data points makes it much simpler to detect suspicious behaviors. Sanction Scanner is a RegTech that creates AML solutions that can assist you in detecting money laundering and protecting your institution from offenders; if you want to learn more about our AML solution, you may contact us and request a demo.