Security News > 2023 > March > Synthetic identity fraud calls for a new approach to identity verification

There is no universally accepted definition of synthetic identity fraud, in part because this type of fraud often overlaps with first-party fraud and identity theft.

Fraud controls on deposit accounts are often less rigorous, and once a criminal has established a deposit account, they may be offered a credit account with little identity verification.

What can be done to tackle the scourge of synthetic identity fraud? At the industry level, lenders and credit bureaus must come together to develop a standard approach for identifying, classifying and reporting synthetic identities.

Enterprises need to implement identity verification solutions that combine online and offline data to comprehensively examine risk signals, such as device behavior biometrics, device identity and reputation, email tenure and reputation, mobile phone tenure and reputation, usage patterns of personally identifiable information, and tenure and activity on social media platforms.

These solutions help organizations protect themselves more effectively against synthetic identity fraud not only at account origination, but throughout the lifetime of the customer relationship - and can thus help combat account takeovers based on traditional identity theft, as well.

Synthetic identity fraud is one of the most challenging issues faced by fraud prevention professionals, but with the right tools and an updated approach - and, ideally, enhanced coordination between lenders and credit bureaus - even the most painstakingly created fictitious identities can be detected.

News URL

https://www.helpnetsecurity.com/2023/03/10/synthetic-identity-fraud-prevention/