Fraud schemes, like the latest trends, are late, but eventually they still come to Lithuania. Therefore, it is important to take preventive measures now. For example, strengthening identity verification processes.
“Synthetic identities may seem like something out of science fiction at first glance. However, they pose a real threat to our society and today account for approximately 85%. of all identity fraud cases. Real data from several individuals and additional, non-existent data can be used to create one such identity.
And the people whose information was used to create a synthetic identity often don’t know anything about it,” says e-mail. Viktoras Kamarevcevs, identification expert and business manager of the company “SK ID Solutions” in Lithuania.
According to him, the donors of fraudulent identities are often children or elderly people who are not inclined to regularly check their credit history: “Using synthetic identities, criminals often open bank accounts, borrow, and thus build a good credit history.” Finally, they take maximum credits from different financial institutions and disappear. In addition, there are cases where they file tax returns or receive unemployment benefits. They can do this for years without anyone noticing.”
There are no untouchables
In Lithuania, according to the expert, we already have measures that help prevent the use of synthetic identities.
“Currently, some of the country’s businesses and institutions use reliable e-mail. identification and signature tools such as Smart-ID, Mobile-ID and others. You can also use integration with state registers.
The ability to embezzle large sums of money and remain untraceable are the main reasons why synthetic identities are one of the fastest growing forms of fraud
These measures make it possible to ensure whether the document with which a person confirms his identity and performs a certain action, for example, opens a bank account, signs a document, etc., is actually issued by the responsible authorities and is valid”, says V.Kamarevcev.
However, he points out that we are not untouchable. Every year, Lithuania attracts new foreign investors and establishes itself as one of the leaders in financial technologies (“fintech”) in Europe. Therefore, we inevitably become more attractive to constantly improving fraudsters. In addition, not all businesses use reliable e-mail. means of identification, thus risking not noticing the synthetic identities used by fraudsters.
“It is important to understand that if the service provider is not careful and uses insecure means of identity verification, he himself can give “life” to the synthetic identity. Take the banking sector as an example. The person in charge does not notice that the client is trying to use a synthetic identity.
Once approved, such an identity gains more credibility with other institutions and takes on a life of its own. And this is very difficult to stop. The threat of using synthetic identities is more common in the fields of e-commerce, insurance, and gambling. Therefore, it is more important than ever to strengthen identity verification processes – to implement secure e-mails that prevent fraudsters. means of identification,” he says.
In addition, the fact that local businesses increasingly provide services abroad also poses certain security risks: “We must not forget that other countries may not have the kind of safeguards we have here. When providing services abroad, it is necessary to “turn on” additional safeguards, such as reading ID documents using NFC technology and integration with foreign registries.”
According to V.Kamarevtsev, it is the possibility of embezzling large sums of money and remaining untraceable that are the main reasons why synthetic identities are one of the fastest growing methods of fraud. In addition, criminals do not shy away from using the latest technologies, such as artificial intelligence, to create fake documents.
A synthetic identity has been used – what to do?
Renata Vasiliauskienė, senior lawyer of the professional association of lawyers “COBALT”, says that it is the latest technologies and the fact that each of us has given a large amount of personal data to the electronic space, which determines that 100% of it is almost impossible to ensure security. Therefore, it is important to implement IT systems with the idea that someone will definitely break into them.
“Multi-factor authentication, checks of personal data provided by external partners, careful checks of the processes of knowing your customers (KYC or “know your customer”), additional attention to identifying the borrower in cases of crediting larger amounts are the most appropriate ways to further reduce errors risks and prevent synthetic identities.
However, employee training is no less important than technological solutions. Various studies show that about 90 percent cyber incidents occur due to human error. Therefore, training should be organized at least annually”, says the expert.
If, however, it was noticed that criminals used a synthetic identity, business representatives should form a working group to assess the circumstances and extent of the violation.
“This working group should consist of experts in IT, law, money laundering prevention, and public relations. If the violation is significant, especially with signs of a criminal offense, it is mandatory to inform the police, the National Cyber Security Center, and the State Data Protection Inspectorate. And financial institutions should report this to the Financial Crimes Service,” says R. Vasiliauskienė.
And if such a crime is noticed by natural persons, the lawyer advises to inform their bank or the police about it as soon as possible, who will offer further measures. In addition, she recommends taking preventive measures: “The most important thing is not to wait for someone to use your identity.
The least that each of us can do is to periodically, preferably every 3 months, change all of our passwords. It’s a very effective and inexpensive security measure.”
Tags: Identity dollars worried type fraud Lithuania Business
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