FDIC and FinCEN Announce New Digital Identity Proofing Initiative

The U.S. Federal Deposit Insurance Corporation (FDIC) and the Financial Crimes Enforcement Network (FinCEN) have announced a new joint initiative, Dubbed Tech Sprint, to support the development of digital identity proofing for the financial sector.

The Tech Sprint will see FDIC’s tech lab and FinCEN organize teams to collaborate on ways to account for security, increase efficiency, and reduce fraud, identity-related crimes, money laundering, and terrorist financing. Through the sprint, the organization will receive applications from individuals interested in helping answer their questions related to digital identity.

These answers will go through three weeks of reviews, post which a “Demo Day” of short team presentations to a panel of experts who will then recognize teams based on different criteria.

According to both institutions, digital identity proofing is a foundational element to enable digital financial services to function properly. However, this element is mostly compromised by an increased amount of leaked personal information episodes, the increased use of synthetic identities, and the presence of multiple varied approaches for identity proofing.