Synthetic identity fraud which is a form of a planned crime is clamping up with every passing day. Identity verification solutions should be integrated into a system in order to combat such frauds. According to a Federal Reserve (2019) report, synthetic identity fraud is growing rapidly in the United States. It is a form of planned crime in order to overcome all the security measures of a business by remaining untraceable. In such types of frauds, the information stolen from different platforms is used to open fraudulent accounts and make fraudulent purchases and to steal money from credit card companies Synthetic identity theft is a type of identity theft in which identities are completely or partially fabricated and not real. By combining a real Social Security number with a name and birthdate identity thief makes up a new identity that seems real but does not exist. Synthetic identity theft is always hard to recognize. The victims of synthetic identity theft are primarily the creditors who grant the lines of credit. Victims are usually confused with a synthetic identity, or if negative information in a credit report sub-file damages their credit score.

Regulatory authorities are always in a bid to eliminate crime at the regional and international levels. Financial and social crimes are increasing and one of the tried and tested methods to eliminate these crimes is through the implementation of KYC and AML screening laws. Businesses, financial institutions, and non-financial institutions are liable for KYC and AML compliance. Although these regulations are more strict for financial institutions (banks, insurance companies, etc.) and the fintech industry. So these industries are opting for video identification method to kill two birds with one stone, it helps them fulfill regulatory obligations along with customer needs. What is KYC compliance? KYC laws are passed by international (FATF,etc.) and domestic authorities (FINMA, FINTRAC, etc.). Major features of all these KYC laws are identical. Below mentioned is the summary of KYC regulations implemented around the globe. Develop a customer identification program Collect and verify the personal credentials of customers Store the information of customers through video verification.Perform enhanced due diligence on high-risk entities Develop and maintain a compliance department Keep an eye on customer activity and report any unusual transaction So it becomes inevitable to take concrete steps to eliminate risks and to keep the criminals away from a business or financial institution. The best approach to prevent these risks proactively is to perform identity screening on the customers.