National leader looks to increase accessibility, adoption, to protect against rapidly rising synthetic identity fraud
September 10, 2024 (New Orleans, Louisiana) – IDScan.net, a leading provider of identity verification technology solutions, and the American Association of Motor Vehicle Administrators (AAMVA) are working together to help reduce synthetic identity fraud in multiple industries by offering businesses the ability to rapidly query DMV data through AAMVA’s Driver License Data Verification (DLDV) service.
Synthetic identity fraud differs from regular fraud in that it involves the creation of a completely new identity by combining real and fake information, rather than simply stealing or using someone else’s existing identity. In a typical fraud scenario, a criminal might use stolen or illegally obtained personal information to impersonate a real individual.
In synthetic identity fraud, the fraudster fabricates an entirely new identity by blending authentic data—such as a real Social Security number—with fictitious details like a made-up name or birthdate. This makes synthetic identity fraud more difficult to detect and often allows criminals to exploit systems for longer periods before being discovered. Verification checks to trusted sources such as DMV data are the ideal method for detection of synthetic identity fraud, since DLDV is able to verify whether the data points on the ID match jurisdictional records.
DLDV service is available inside both of IDScan.net’s identity verification products – VeriScan and DIVE. The call to DLDV can be triggered after the scan of every ID, or on-demand for high risk transactions. The checks, which are available for 41 U.S. states and Washington D.C., use data points from the ID, which are then either confirmed or denied by the DLDV service. These checks help combat use of ultra-sophisticated fake IDs, or enhance ID verification in scenarios where the ID cannot be fully examined, such as during digital transactions.
One industry benefiting from protection against synthetic identity fraud is multifamily real estate. Leading real estate software and services provider MRI Software uses DLDV checks through IDScan.net to deepen their identity proofing before apartment tours. “Clients that use our CheckpointID tool enjoy the additional peace of mind that comes with using DLDV checks,” said Brian Zrimsek, Industry Principal at MRI Software. “They receive a response in seconds that lets them know whether the driver’s license presented is legitimate. Ultimately, this has helped prevent hundreds of thousands of dollars in fraud for communities using our products.”
Automotive, retail and eCommerce, and banking businesses, as well as government entities are also among those at high risk of synthetic identity fraud. And these advanced scammers typically use each fabricated identity as many times as possible before they’re caught, testing the strength of identity verification processes at a variety of businesses using their faux credentials.
“DLDV is an excellent tool to prevent synthetic identity fraud. By verifying data directly against the issuing agency, fake credentials can be flagged in real time before being used to commit fraud. By connecting industry and motor vehicle agencies, DLDV offers another effective tool for identity verification.” said Philip Quinlan, Vice President of Business Solutions with AAMVA.
IDScan.net and AAMVA are excited to continue promotion of these deeper checks inside VeriScan and DIVE. Not only do DLDV checks help businesses protect themselves against the $56B economic threat of identity fraud, they also help protect consumers, by ensuring that their identities (whether in full, or partially fabricated) are not used for nefarious activities. Organizations looking to improve their identity proofing workflows can learn more about adding DLDV checks to IDScan.net products by contacting hello@idscan.net.
About AAMVA
The American Association of Motor Vehicle Administrators (AAMVA) is a non-governmental, voluntary, tax-exempt, nonprofit association. Functioning as a private entity, AAMVA aims to pioneer model programs in motor vehicle administration, law enforcement, , and highway safety. AAMVA acts as a pivotal information hub and international advocate for these fields, comprising motor vehicle and law enforcement administrators and executives from all 50 states, the District of Columbia, and Canadian territories and provinces.
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