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GRA · Financial Crime and Fraud Risk

Spatial financeWhere capital meets hazard, exposure and transition

Digital identity and public digital systems for financial crime and fraud risk

Digital identity lets people prove who they are remotely and lets institutions verify them for due diligence. On this platform it is examined for assurance, fraud resistance, inclusion and privacy, following FATF and national identity frameworks.

01Register

Digital identity and public digital systems for financial crime and fraud risk on the record.

Method recordSTEM method
  1. MethodDigital identity and public digital systems
  2. Applied inFinancial Crime and Fraud Risk
  3. Canonical pageSTEM Commons
02Application

What digital identity and public digital systems does here.

Digital identity and public digital systems provide the means for people and organisations to prove who they are and access services online. They underpin social protection, financial inclusion and emergency assistance. In financial stability, cyber and digital resilience and governance and institutions, digital identity systems determine how quickly aid and payments reach people after shocks. Their failure or misuse can amplify social and economic harm. The canonical description is on the STEM Commons.

Assurance levels for onboarding

Identity proofing and authentication assurance levels are matched to product risk, following the FATF digital identity guidance and national standards.

Defending against deepfakes

Liveness detection, document authenticity checks and device signals are evaluated against synthetic media attacks on remote onboarding.

Inclusion testing

False rejection rates are examined for people without standard documents, older people and minority groups, to find where verification excludes.

03Monitor

Security assessment.

The screen a team would use to follow this method: its measures, states and decisions. Names are examples and values are illustrative.

Security assessment

Financial crime · Digital identity and public · Run R-8380

Two high findingsGRA · Financial Crime and Fraud Risk

Findings

Weak key rotationIdentity serviceHighPR.AAOpen
Unpatched gatewayEdgeHighPR.PSFixing
Logging gapPayments APIMediumDE.CMOpen
Stale accountsDirectoryLowPR.AAClosed

Method card

Method
Digital identity and public digital systems
Framework
CSF 2.0 functions
Scope
13 assets
Label
MODELLED

Control coverage by function

Security assessment: the screen's structure, terms and states for Financial crime.Example names and illustrative values; a design, not a record or a live system.
04Data

What the method consumes.

Datasets and records used by digital identity and public digital systems on this platform, with the role each plays and the label its values carry. Sources are listed in the source register.

DataRoleLabel
Identity verification outcomesPerformanceOBSERVED
Assurance framework documentsStandardsPublished statistics
Fraud case dataAttack patternsREPORTED
05Exposure, loss and capital

What it means for exposure, loss and capital.

The exposure, loss, scenario and capital views a risk officer, supervisor or ministry of finance would ask for, with the frameworks they report against. Structures follow supervisory and actuarial practice. Values are illustrative: never prices, ratings or advice.

Transmission channels

How a shock in digital identity and public digital systems for financial crime and fraud risk reaches credit, market, underwriting, liquidity and operational risk, and feeds back.

Channel structure after the Basel Committee's work on climate-related risk drivers and transmission channels; links shown are typical paths, not estimated exposures.
NGFS climate scenarios · Network for Greening the Financial SystemIFRS S2 Climate-related Disclosures · ISSBTCFD recommendations · Financial Stability Board TCFDPrinciples for the effective management of climate-related financial risks · Basel Committee on Banking Supervision
06Validation

How results are checked.

Systems are tested for accuracy of matching, resistance to fraud and accessibility. Independent audits review privacy and security controls.

CheckHow it is done
Assurance mapped to riskAssurance level is justified by product risk
Attack testingControls are tested against current attack methods
Exclusion monitoringRejection rates are tracked by group

Exclusion errors can deny services to vulnerable groups. Centralised systems create attractive targets and single points of failure.

07Process

How the process runs.

Process explorer · Process

Digital identity and public digital systems for financial crime and fraud risk: Incident handling, CSF 2.0

8 steps4 stages1 gate

Process

Digital identity and public digital systems for financial crime and fraud risk: Incident handling, CSF 2.0

CSF 2.0 has six Functions to address concurrently, in no implied order; this walk-through picks outcomes from Detect, Respond, Recover, Identify and Govern.

  1. 01 Detect

    1. 01Detect: adverse event analysis (DE.AE)DatasetPotentially adverse events are analysed to detect cybersecurity incidents. Information is correlated from multiple sources.
    2. 02Declare and triage (DE.AE-08, RS.MA-02)GateIncidents are declared when adverse events meet the defined incident criteria. Incident reports are triaged and validated.
  2. 02 Respond

    1. 03Respond: incident analysis (RS.AN)ModelInvestigations establish what has taken place and the root cause. Records of the investigation keep their integrity and provenance.
    2. 04Respond: incident mitigation (RS.MI)Step · Sanctions officerActivities prevent expansion of an event and mitigate its effects. Incidents are contained and eradicated.
    3. 05Respond: reporting and communication (RS.CO)StepResponse is coordinated with internal and external stakeholders as laws, regulations or policies require. Stakeholders are notified.
  3. 03 Recover

    1. 06Recover: incident recovery plan execution (RC.RP)StepRestoration is performed to restore availability. The integrity of backups and other restoration assets is verified before use.
  4. 04 Improve and govern

    1. 07Identify: improvement (ID.IM)StepImprovements come from evaluations, tests, exercises and operations. Incident response plans are set, shared, maintained and improved.
    2. 08Govern: oversight (GV.OV)Decision · Sanctions officerRisk management results inform and adjust the risk strategy. Leadership is responsible and accountable for cybersecurity risk.

Neutral outline of a published external standard or method, from its issuing body. Not a record of operation. Nexus does not perform, certify or approve any step shown. A gate or decision belongs to the party the source names. The six Functions are Govern, Identify, Protect, Detect, Respond and Recover.

09Stewardship

Who maintains the method.

Digital Public Infrastructure stewards digital identity and public digital systems for the Consortium and reviews how it is applied across platforms.

11Questions

Questions and answers.

What are the limits of digital identity and public digital systems in this field?
Exclusion errors can deny services to vulnerable groups. Centralised systems create attractive targets and single points of failure.
How are results checked?
Systems are tested for accuracy of matching, resistance to fraud and accessibility. Independent audits review privacy and security controls.
Are the values on this page real?
The data names, roles and checks are real descriptions of practice. The canvas shows a design of the method's use, not a run; no result is reported here.
Where else is this method applied?
The canonical method page lists every platform that applies it.
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