Synthetic Money Movers: The Growing, Undetected Multi-Billion Dollar Problem

Peer-to-peer money movers using synthetic identities pose a significant threat, leading to potentially devastating losses far surpassing typical credit-loss write-offs or even bust-out fraud. Today financial institutions and fintechs are not bearing the brunt of the losses from these illicit activities, however, there is a proposed regulatory shift that will have a significant impact on where responsibility is placed. Regulators are considering transferring the liability of non-authorized push payments from consumers back to the receiving bank or credit union, which would immediately result in billions of dollars of new financial losses. Unfortunately, numerous organizations remain unaware of the imminent scale of this impending liability. Taking proactive measures now is essential to combatting evolving synthetic fraud and critical to safeguarding your organization.