As broad economic recovery continues to falter and talks swirl about another round of federally-approved stimulus, the total package numbers being debated by congress range from somewhere between$300 billion to close to $1 trillion. Dollars aside, it’s likely the final tally is going to be a big number, with substantial funds carved out for small business relief as well as unemployment benefits and payments.
From a fraud perspective, my first thought here is, “here we go again?” It’s no secret that both the public and private sectors were caught off guard by the sheer magnitude of fraud and attacks that we witnessed related to PPP and unemployment claims earlier this year. Perhaps unsurprisingly, it was even reported this week that the scope of the resulting investigations and prosecutions willlast years.
To be clear, the fraud that was uncovered as a result of CARES Act stimulus abuse was sometimestricky and creative. It involved not just traditional third party identity fraud, but also synthetic identity fraud. Adding insult to injury, PPP loan fraud was often overshadowed in the media by the eye-popping amounts of unemployment fraud reported by state offices throughout the country. So now, with more money on the way and heightened pressure to get funds into the hands of those who need it quickly and securely, what can be done to avoid a repeat of what we saw in the spring and summer?
Whether public or private sector, it’s never too late to bolster your risk program. For state unemployment offices who anticipate having more funds to disburse to currently and newly-unemployed individuals, Socure’sSigma IdentityandSigma Syntheticsolutions can help power more accurate risk decisions tospeed up claims processing while reducing fraud. For the FI’s and fintechs that may assist with future small business lending, Socure’s best-in-class solutions will help boost the efficiency of your operation and prevent loss of taxpayer money. And when a risk decision in either scenario requires additional vetting, Socure’s fully-automated, omnichannel document verification service (DocV), provides greater clarity. When these solutions are combined, Socure supports auto-decisioning rates of up to 98%.
For more information on how Socure can transform your unemployment verification and small business lending operations online, firstname.lastname@example.org.
Anthony is VP and Head of Product Marketing at Socure. Previously, he was at Raise, the world's largest marketplace for retail currency. Prior to that, Anthony was a co-founder at Slide, a gift card wallet app on iOS and Android, that was acquired by Raise in 2016. Before becoming an entrepreneur, Anthony worked in business and product development at American Express.