SentiLink's co-founder and COO, Max Blumenfeld tackles the topic of synthetic fraud in his latest article in Advisor Magazine. Synthetic identity fraud is the fastest growing type of financial crime in the U.S., often goes undetected and costs financial institutions an estimated $2B a year in losses.
Technically, there are two types of synthetic fraud, one where someone manipulates their identity, and another where an identity is totally fabricated.
Synthetic identities are surprisingly easy to create. It’s as easy as taking your own name, date of birth, and any nine-digit number that looks like a Social Security number and applying for a loan.