Federal regulators said the proliferation of scams and identity fraud poses huge challenges for online financial services.
The Financial Crimes Enforcement Network (FinCEN) and the Federal Deposit Insurance Corporation (FDIC) have teamed up for a new “tech sprint” to test the effectiveness of digital authentication.
According to the joint announcement from the two institutions, digital identity verification processes are generally used by financial institutions to prove that the person is himself.
The financial industry is getting more and more online, and scammers are developing more and more creative ways to commit financial crimes.
According to the FDIC and FinCEN, the leaking and hacking of personally identifiable information (PII) and the creation of synthetic identities make it difficult to find a person’s true identity.
In the “tech sprint”, whose date has not been finalized, participants will be asked to come up with a scalable, cost-effective, risk-based solution to measure the effectiveness of digital authentication.
The FDIC and FinCEN aim to improve the security of online financial services and prevent digital crime.
