How Synthetic Identities Are Impacting the Insurance Industry

Synthetic identification fraud has become a growing concern, particularly in the realm of health insurance. Criminals create fake identities using a combination of real and fabricated information or steal an identity then pose as the legitimate policyholders in order to obtain medical benefits. By operationalizing internal data assets and accessing external data sets fraud prevention protocols can be put in place at the application and point of sales through to FNOL. In my opinion application fraud is the most undetected insurance fraud. How can you protect against application fraud?
Focus on strong identity proofing tools for customer intelligence
Real-time entity resolution and verification protocols
Enrich internal and external with analytics and scoring models
Identify social media and online presence
Validate with ID verification and documentation or biometrics
As soon as we think we've figured out how the criminals figure out new ways to commit fraud!