When “fake” AI-generated identities are used to commit financial crimes by targeting financial institutions, government agencies, and businesses, it is called synthetic identity fraud. Data breaches and the dark web provide the raw materials while blending and manipulating data ensure these synthetic identities can pass various forms of scrutiny, making this type of fraud one of the hardest to detect and prevent in the global financial ecosystem!

The types of fraud victims fall prey to differ from stage to stage in a customer journey. If identity thefts are common during onboarding, payment-related frauds like credential stuffing are common during the transaction stage. Here’s a walkthrough of the different types of fraud that you can see as you move through the customer journey. (Bonus: We also tell you the specific signals that help detect fraud)

Fraudsters are increasingly leveraging GenAI to intercept and interfere with liveness detection solutions during the KYC process. This lets malicious actors enter the financial ecosystem, where they then wreak havoc by laundering money or committing other forms of financial crime. One such GenAI threat is the use of digital injections. Find out more here.

How are money mules recruited and exploited? Read the psychological tactics employed by fraudsters to coerce victims into completing payment requests, or divulging their sensitive financial details. Knowing how to spot the red flags of money mule activity can prevent these unwitting mules from becoming accomplices in funding global crimes like financing terror, drug trade, human trafficking, and more.

Money laundering is the process through which the proceeds of criminal activity are infused into the financial ecosystem and its criminal origins are concealed. This process of "laundering" to convert dirty money into clean money usually has three distinctive stages, each with its own goal and challenges. We explain these in detail and also provide tactical and structural solutions to blocking financial criminal activity at every stage.

In response to international pressures and the specific vulnerabilities identified within its borders, the Indian government enacted the Prevention of Money Laundering Act (PMLA) in 2002. This crucial legislation aimed not only to curb the increasing tide of financial crimes but also to align India's financial security measures with global standards, ensuring a safer and more robust financial environment domestically and internationally. Here's an explainer of India's AML landscape.