A new study from ID:A Labs shows that the rate of synthetic identity fraud has increased more than 100 percent since 2010. This white paper explores the definition of synthetic fraudsters, the algorithm used to identify them, the estimated size of the synthetic fraud issue, and possible solutions for reducing synthetic fraud.
Synthetic identity fraud occurs when a fraudster fabricates a new and false identity that is not associated with a real person. The absence of a victim may enable synthetic fraud to remain undetected for months. Fraudsters use this technique for financial gain, often nurturing the synthetic identity to generate larger credit limits and therefore larger loss amounts than the average identity theft scenario. Additionally, fraudsters can also use this technique to mask other types of criminal activity.
Through our extensive research, ID Analytics discovered this nuanced type of fraud by examining data patterns within our ID Network. This white paper covers:
- Our latest research findings in the area of synthetic identities
- How ID Analytics has developed new algorithms to identify these fraudsters within the ID Network
- How to better protect your business from synthetic fraud