FutureFive NZ - Online tool to fight fraud

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Online tool to fight fraud

A new electronic service to help combat identity fraud will
be made available to banks and other financial institutions, the Minister of
Internal Affairs Nathan Guy has announced.

“The Data Validation Service has been developed by the
Department of Internal Affairs as a way of proving identity. It has been
trialled by other government agencies, and now Cabinet has agreed to let
private sector organisations use it as a way of confirming identity and
reducing costs,” Guy said.

“This service allows users to enter the information they
hold into the Data Validation Service website, which can immediately confirm
whether it is consistent or not with other personal details held by the
Department of Internal Affairs. This can include details on citizenship,
passports and births, deaths and marriages databases and registers.

“This service will help ensure compliance with the
Anti-Money Laundering and Countering Financing of Terrorism Act 2009, which
requires banks and other financial institutions to undertake more comprehensive
‘know your customer’ checks.

“The government is mindful of privacy concerns. The records
do not include sensitive information such as income, travel details or criminal
records, and agencies using this tool will first need their customers’
permission to make the checks. 

“The Data Validation
Service will be available only to organisations which meet strict security,
privacy and integrity criteria. The government has also agreed that the Privacy
Commissioner will monitor this service,” says Guy. A bill will be
introduced later this year to make the Data Validation Service available to the
private sector.

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