What Is Synthetic Fraud?
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. In its simplest form, a synthetic identity is one where the name, date of birth and social security number don’t correspond to any real person. That synthetic identity can then be used to apply for credit, just as any other person would.