Security News > 2021 > February > The cost of synthetic fraud to reach new highs

A TransUnion research finds instances of synthetic fraud and outstanding balances for suspected synthetic accounts at U.S. financial institutions have declined significantly after the WHO declared COVID-19 a global pandemic.

New analysis by Aite Group finds the cost of synthetic fraud will rebound post-pandemic, reaching new highs.

"The dip in synthetic fraud during the pandemic was a continuation of our 2019 findings that showed synthetic fraud was slowing amid the emergence of solutions that connect personal and digital identities," said Shai Cohen, SVP of Global Fraud Solutions at TransUnion.

A 32% decrease in new credit cards and a 23% decline in new auto loans linked to synthetic fraud from Q3 2019 to Q3 2020 was documentes.

Beyond financial services, which had by far the highest amounts of digital synthetic fraud in 2020, it determined e-commerce and iGaming were the industries with the second and third highest amounts of synthetic fraud last year.

Despite the recent drop in synthetic fraud at financial institutions, an Aite Group report finds the cost of synthetic fraud will rise in the coming years.

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