1. Jack J. Bensimon Countering Identity Theft and Synthetic Identities:
Measures to Mitigate Losses
Jack J. Bensimon
Financial Crime Risk Management Advisor
Securefact
September 22nd, 2016

2. What is synthetic identity theft?
Involves the use of a fictitious identity in perpetrating fraud
Allows thieves to create identities based on new and fictitious ID
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3. How is synthetic ID theft executed?
Credit file is created through a synthetic identity
Fraudsters use fictitious identity to obtain credit
Makes payments to establish credit and make purchases
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Jack J. Bensimon September 22, 2016

4. New threats: Ransomware and Social Engineering
received by fraudster that locks you out of key data – denial of data
Social engineering – compromise PC, obtaining SIN
Comes from trusted sources/friends
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5. How does this risk affect my business?
Growing pervasiveness
Escalating financial risk
Reputational risks from breaches
Regulatory risk
#1 Risk issue for banks in 2016*
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*Source: Wall Street Journal, 2016

6. Fake Accounts, Real Losses
*Source: Javelin Strategy and Research
*Source: ID Analytics
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7. Case Study Two cement trucks bought in Canada for $1M via bank loan
Trucks are purchased through both synthetic ID and synthetic company
Trucks shipped to Dubai via railcar and sold on black market
Synthetic identity reported trucks stolen and collected insurance proceeds
Achieved by legitimate documents via fictitious names
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8. How to prevent doing business with fraudsters
Implement effective tools to manage KYC data
Effective Policies & Procedures – prevent, detect, monitor
Satisfy current and future regulatory requirements
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9. New technology to manage the process
Ability to automate and standardize
Prevent fraud and reduce losses
Satisfy current and future regulatory needs
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10. Securefact SIDni™ Launching Fall 2016
ID Verification Engine &
Fraud Detection Tool
Credit Bureau Data
Utility (Telecom) Data
Government Sources
(Phase II)
Aggregate Social Biometrics
Address Validation
Secure IDentity Network for Individuals
FINTRAC compliant CNP* identity management tool with enhanced fraud metrics
Multiple Authoritative data
Verified within seconds
Built to support Digital Onboarding
Reduce exposure to fraud losses
Simple integration
Web Service via API
API Delivery
for Simple Integration
Your Existing Processes
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*CNP = Customer Not Present

11. Summary Synthetic Identity and Identity Theft are pervasive
Reputational risk linked to branding
New technologies are mitigating fraud and losses
Lenders not immune to regulation – KYC paramount
Jack J. Bensimon
Securefact