Verifying someone’s identity used to be relatively straightforward. You checked a few data points and if everything matched, you moved forward. For a while, that worked. Then, technology evolved and fraudsters adapted.

The first major rise in fraud cases was built on stolen identities. Real people, real credentials — just in the wrong hands. As data breaches exposed millions of records and personal information became easier to buy and sell, identity theft surged. 

Financial institutions responded by layering in new protections: knowledge-based authentication, device checks, and additional verification steps designed to confirm that the person on the other side was who they claimed to be.

Now, fraud has evolved again. Today, synthetic identity fraud makes up more than 1 in every 10 fraud cases, representing an eight-fold global increase year over year according to the latest cybercrime report from LexisNexis Risk Solutions. 

Synthetic fraud enables fraudsters to stitch together new identities from a mix of real and fabricated information. A legitimate Social Security number paired with a false name. A real address combined with disposable contact details. This makes it harder than ever to spot fraud with basic verification processes.

Coupled with the demand for faster, more seamless onboarding experiences, it’s easier than ever for sophisticated identity fraud — stolen or synthetic — to slip through the cracks. To stop this from happening, Spinwheel is working to give lenders, banks, and fintechs even greater control and confidence in identity verification. Enter Connect Risk Layer. 

How Spinwheel’s Connect Risk Layer Reduces Fraud Risk

As fraudsters continue to evolve, financial providers and lenders need more than a one-size-fits-all verification flow. Spinwheel’s Connect Risk Layer is a security add-on that extends Connect’s core verification by returning fraud risk indicators and validating consumer information against independent data sources. 

It is a configurable second layer on top of existing Customer Identification Programs (CIP) and Know Your Customer (KYC) Protocols to give lenders greater control and confidence in identity verification. 

WIth Connect Risk Layer, financial providers gain: 

• Stronger CIP/KYC Through Layered Verification: Connect Risk Layer adds an independent layer of verification on top of existing CIP/KYC checks, increasing confidence that identity data is accurate, consistent, and defensible.

• Controlled Fraud and Risk Decisions: Large lenders and providers gain direct control over fraud and risk thresholds, allowing them to apply their own indicators instead of being constrained by a one-size-fits-all verification model.

• Better Defense Against Emerging Fraud Vectors: By independently validating user data and exposing risk signals, Connect Risk Layer helps organizations stay ahead of evolving fraud tactics and reduce exposure across onboarding and ongoing monitoring processes.

And, it does all of this without disrupting the Spinwheel Connect experience — meaning faster, seamless, and extra secure onboarding for customers.