‘Follow the money’

Among the fastest growing drivers of money laundering is synthetic fraud, says Sue Landauer, who spoke at the 2019 CUNA BSA/AML Certification Conference with NASCUS in Tempe, Ariz.

While synthetic fraud isn’t new, Landauer says fraudsters are finding more advanced ways to apply it, collaborate, and scheme to get away with money laundering-related crimes.

“It all goes back to following the money,” says Landauer, a certified public accountant with Forensic Accounting Services Group. “You play a very critical role in this process. You can help uncover a lot of crime.”

With synthetic fraud, the criminal fabricates an identity by applying for credit. Typically, they obtain an individual’s Social Security number and use a fake name, Landauer says. The perpetrator is initially turned down for credit but eventually develops a profile and establishes credit. Many of the accounts are store credit cards and auto loans, Landauer says.

 

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