Case Study on Synthetic Identity Risk Management

This case study outlines how a top five U.S. bank identified risks associated with synthetic identities and potential money mules in its customer accounts. The bank faced economic and regulatory pressures due to a lack of insight into existing customer risks. To address these issues, the bank collaborated with Socure for a Portfolio Scrub, which involved identifying risk attributes that support Know Your Customer (KYC) and Customer Risk Rating (CRR) data points. The analysis revealed that out of approximately two million records, around two percent of the accounts were flagged as high risk for KYC compliance or identity fraud. Furthermore, it was identified that 30,000 accounts were opened using manipulated or fabricated synthetic identities, posing significant risks to the bank's operations. The study details the methodologies and tools used by Socure to uncover these risks, as well as the specific types of fraud detected in the bank's customer accounts. This proactive approach aims to enhance compliance and reduce potential financial penalties.