The Rising Threat of Fake Business Accounts

The banking and financial services industry will see a growth in scams and frauds perpetrated through fake businesses, incentivizing bad actors to continue creating these fraudulent entities, said Mary Ann Miller, a fraud and cybercrime executive advisor with Prove.

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“I don’t think they’re going to stop with their consumer generation of fake accounts, but I think that the prevalence and the increase in creating fake business accounts will continue to rise,” said Miller.

“What’s I think even more complex about this type of fraud is when someone’s identity is wrapped up into a synthetic identity and then on top of that is used to open up a fake business,” she said.

In this video interview with Information Security Media Group, Miller discussed:

• The importance of strengthening identity verification in business sector;
• Strategies to improve know-your-business requirements;
• The role of U.S. Small Business Administration in helping to stop fraud.

Miller, a fraud and cybercrime executive advisor with Prove, is an expert in the fraud and identity space, most recently led fraud strategy at Varo Bank, where she managed the process for transitioning the fintech to a nationally chartered challenger bank.