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Banks Have a Solution for Their Identity-Fraud Woes: The DMV - ABI

Big banks are enlisting the local DMV in their fight against identity fraud, the Wall Street Journal reported. Lenders including JPMorgan Chase & Co., Bank of America Corp., Wells Fargo & Co. and Citigroup Inc. are looking for ways to link up with databases at state departments of motor vehicles and other government offices to make sure potential customers are who they say they are. Motor-vehicle departments are appealing partners for banks as more people are opening accounts online. At the Department of Motor Vehicles, applicants typically must appear in person, at least initially, with a stack of documents including birth certificates and social security cards that are verified by trained staffers. Identity verification, a perennial problem for banks, has taken on greater importance since some high-profile data breaches exposed loads of customer data that fraudsters could exploit to open accounts. Banks are also looking for ways to combat a rapidly growing and particularly vexing scam that involves made-up borrowers.

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