Spike in Fake ID Schemes Confounds Banks' Fraud Filters

Identity fraud, especially so-called synthetic schemes that use completely or partly made-up identities, is on the rise and hitting banks hard. Using new techniques, hackers can stitch digital data together and sell it on the black market as a fully emulated debit card that allows an individual to walk up to an ATM, enter the PIN and withdraw cash.

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It is hard to measure the frequency of synthetic ID fraud, in large part because "there’s no self-reporting victim," notes Richard Parry, a consultant and a former security executive at JPMorgan Chase, Citigroup, and Visa.

Credit unions have an obligation to "know their customer". What is your firm doing to identify and combat identity theft and fraud for your members?