What every FI needs to know about combating synthetic identity fraud

Synthetic identity fraud is a destructive problem for financial institutions that results when criminals fabricate identities to establish new accounts or lines of credit. Now recognized as the fastest growing type of financial crime, synthetic identity fraud also has become an increasing concern for regulators as confirmations emerge that synthetic identities proliferated money laundering schemes related to pandemic-era relief. Financial institutions need to invest in technology to identify synthetic identities at the time of application. In this discussion with three of the industry’s preeminent experts on synthetic identity fraud, we move beyond the basics and delve into a deep analysis around how to detect and solve for this elusive type of fraud. The conversation includes a review of the results of a new Aite Group report, Synthetic Identity Fraud: Diabolical Charge-Offs on the Rise, which examines synthetic identity fraud’s impact on the U.S. unsecured credit market. It was informed by a survey of 46 North American fraud experts.