How to prevent the banks of the future from creating accounts with false identities

Recently, one of the pioneer companies in Europe, which delivered the first credit card remotely, alerted the entire Fintech ecosystem. 

On its website, it assured that a new user could open an account with the security of the German regulation in eight minutes. However, they did not comply with the security standards and it was possible to open an account with a fake ID. This technique or the generation of a false profile is called “Synthetic identity”, in which part of the information is real and part of it is fictitious.

What steps should you have taken to make your promise come true? 
Today, banks have access to the technology necessary to allow any client to perform all kinds of operations remotely, securely and without friction, safeguarding the digital identity of the citizen throughout the Process. Some of the measures that the Bank must implement to achieve this are:

1. Have connection with the national government. It is necessary for the bank to make an alliance with the government in order to compare the information it receives from a citizen against the official database.
2. Use biometric technology to validate the identity of the user. The digital transformation that many companies know implies the reinvention of the Organization through the use of digital technology to improve the way in which it works and serves those who constitute it. The implementation of biometric solutions is key in this process: Use facial recognition to validate that the person is who he or she claims to be, or speech recognition, for example, to attest to the citizen’s life.
3. Validate user information with social networks. Nowadays it is possible to implement technologies to compare the information that the user gives to the bank with the one that it provides through the different social networks to guarantee that the person is who he claims to be.
4. Employ a secure onboarding process. It is an integral process that manages the whole life cycle of a citizen, validates the ID against a selfie of the user, asks it to interact with the application to ensure that it is a person and not a superimposed photo, and can be made from any DISPO Device enabled by the Bank: cashier, Mobile, tablet, PC, IVR, etc.
5. Correlate of business events. The case mentioned in Germany was identified on the basis of repeated and almost similar behavior of almost 25% of the total system users.
6.  Compare the device with the user. Why would the same device be used by more than two or three people? To relieve and cross this information is key to the prevention of fraud and the streamlining of business processes.
7. Perform behavior analysis. The analysis of the physical activity of individuals is very simple thanks to mobile phones, which can determine if a person moves, sleeps or performs his daily workout routine. It can help generate anomalous behavior alerts For example: Why would a person be making a purchase at the same time he is running on tape?

The implementation of technology in banks must keep pace with the changes in society in order to maintain their competitiveness, and for this it is essential that they incorporate measures of cybersecurity to the business, to protect the identity of the citizens in all Time.

By Sebastián Stranieri, CEO of VU