Synthetic identity fraud occurs when fraudsters use a blend of real and fake information to create a “new” individual. In some cases, the information used is entirely fake. The bad actors will open up new credit cards or auto loans under the fake individual’s name, with the goal of creating credit records and boosting the credit profile.
While synthetic ID fraud is not a new strategy for fraudsters, it has recently become a new favorite. Changes to validation and increased in-person security for credit cards have caused a rapid rise in synthetic ID fraud that shows no signs of slowing. Easy access to data used by fraudsters to create synthetic IDs will continue to make fraud an attractive and profitable option. According to studies conducted by the Aite Group, credit card losses that resulted from synthetic ID fraud topped $820 million in 2017, an increase of 17% from the previous year. Forecasters expect this to grow to $1.3 billion by 2020.
There is hope in the fight against synthetic ID fraud, and we’re here to help. By taking proactive measures and implementing an analytics-based solution, you can stop losses and keep fraudsters from outwitting your controls. In our latest eBook, you’ll get up close and personal with synthetic ID fraud and learn:
- Steps for determining your business’s exposure to fraud
- What your best customers are doing and what fraudsters are already costing you
- How to stop fraudsters from bypassing your controls
You will also get access to interactive checklists for evaluating and implementing a holistic online fraud management strategy.