Consultant Review | | JULY-AUGUST 202419ue to the IT Revolu-tion and availability of sophisticated technol-ogies, Financial Insti-tutions have become much more effective at preventing many types of fraud but crime has evolved also. Synthetic Identity fraud that can be referred to as the crime of the new millennium, is one of the fastest-growing problems world-wide. It is a significant example of how fraudsters evolve themselves and focus on weaknesses in online banking security when developing fraud techniques.In this technique, Instead of using a stolen credit card or identity (ID), fraudsters use fabricated, synthetic IDs to draw credit. Indeed, by an estimate, synthetic ID fraud is one of the fastest-growing modern financial crimes worldwide.Either using a blend of real and fake information or wholly fake per-sonally identifiable information (PII), cybercriminals create a synthetic identity and use this to open an illegit-imate bank account. Criminals obtain personal information from custom-er data breaches and from the Dark Web. Personal information is also gathered through social engineering techniques. This information is then used to open various bank accounts and to get credit cards. The cyber-criminals operate these accounts for some time and build up a good credit record of these synthetic IDs.By Ajay Kaushik, Founder & CEO, Panacea InfosecSYNTHETIC IDENTITY FRAUD A SOPHISTICATED CRIME OF THE NEW MILLENNIUMDAjay is a first-generation entrepreneur, business leader, strategist, visionary and mentor, He is the founder of Panacea Infosec , which is amongst India's First Information Security Audit firm with twin accreditation by Payment Card Industry (PCI) Security Standards Council as a PCI Data Security Standard (DSS) Qualified Security Assessor (QSA) and SWIFT-certified firm. Panacea InfoSec is also empanelled on the Computer Emergency Response Team (CERT) under the Government of India.CXO INSIGHTS
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