(5M)
Q.9.A. Unscramble the jumbled words to find out the names. (Any 5)
1. BVI CECL-
2. SBU-
3. ARC-
6. PLANOREA-
5. PISH
4.IIANR-
Answers
Answer:
Synthetic identity fraud worrying U.S. regulators
Synthetic identity fraud, one of the fastest-growing financial crimes in the United States, has become an increasing concern for regulators, as banks struggle to find common ways of tackling the innovative theft technique that combines real and fictitious data about individuals.
Estimates over the scale of the fraud vary, but nearly all show the problem growing. One widely reported analysis by Auriemma Group, an information and advisory firm for the payments and lending industries, suggested that synthetic identity fraud cost U.S. lenders $6 billion. Meanwhile, the consultancy McKinsey estimates the financial theft accounts for 10–15% of charge offs in a typical unsecured lending portfolio.
“When we look at the market, roughly 20% of credit losses stem from synthetic identity fraud,” said Johnny Ayers, CEO of Socure, a firm specializing in digital identity verification technology.
“Synthetic identity fraud opens up the door to bad actors in areas such as money laundering and human trafficking,” Ayers said. “One of the biggest challenges for banks is that there is traditionally not a victim.”
The growing theft has recently turned up in the U.S. government’s Paycheck Protection Program (PPP). According to a report from the SentiLink, a fraud-prevention tech firm, individuals have been creating synthetic identities to obtain loans from the program designed to help those struggling under the weight of the pandemic.
U.S. bank regulators, in particular the Federal Reserve, are increasingly focused on synthetic theft and have been working with banks and technology firms to help identify solutions and common definitions.
“Synthetic identity fraud is not a problem that any one organization or industry can tackle independently, given its far-reaching effects on the U.S. financial system,” said Jim Cunha, senior vice president at the Federal Reserve Bank of Boston, in a recent study.
Explanation: