The Social Security Administration is facing challenges in updating its fraud prevention technology, particularly in combating synthetic identity fraud, where gaps are allowing scams to slip through unnoticed by financial institutions and federal agencies. The agency's Electronic Consent-Based Social Security Number Verification service, launched in 2020, aimed to address this issue, but concerns have been raised about its financial sustainability, user interpretation challenges, and inadequate performance measures. Synthetic identity scams are on the rise, with nearly 3,000 suspicious activity reports totaling $182 million in potential fraud in 2021
The Government Accountability Office urged the SSA to enhance its IT controls, expand service usage, and set clear performance goals to effectively combat synthetic identity fraud. ```https://www.bankinfosecurity.com/ssa-struggling-to-modernize-fraud-prevention-tech-gao-warns-a-26506