In recent years, technology has gotten so good at detecting counterfeit ID documents, that fraudsters are changing their modus operandi. Social engineering and the use of money mules have widespread and call for a radically different approach to KYC. Social engineering fraud consists of abusing a legitimate ID obtained through deceptive tactics. The actual owner of the ID is the victim of a fraud scam. He isn’t aware that their ID is being used for illicit purposes. The goal is still the same; the ID predator tricks its prey into giving up sensitive personal data.
Money mules lend out their data, either under pressure or motivated by the possibility to make easy money. Either the mule opens a bank account on behalf of the criminals, or the fraudsters open an account by using the mule’s credentials. Criminals pay the collaborator a percentage of the money through the mule. The latter know that they are taking part in a scam, but they aren’t always fully aware of the risk and the consequences.
For further insight, click on this link: Fourthline’s Blog Page