Security News > 2024 > July > Fighting AI-powered synthetic ID fraud with AI

Aided by the emergence of generative artificial intelligence models, synthetic identity fraud has skyrocketed, and now accounts for a staggering 85% of all identity fraud cases.

Anomaly detection algorithms analyze transaction data to flag irregularities indicative of synthetic identity fraud, continuously learning from new data and evolving fraud tactics to enhance effectiveness over time.

While synthetic identity fraud poses a common threat across industries, certain sectors, such as retail banking and fintech, are particularly vulnerable due to the prevalence of exploitative lending practices.

While technology is essential in fighting AI fraud, employees are also pivotal in an organization's efforts to detect and prevent AI-based identity fraud.

Guidelines such as the EU's AI Act provide essential frameworks for businesses to adhere to, applicable even to US companies doing business in the EU. The growth of AI-based identity fraud has prompted governments worldwide to act.

In addition to the US, countries including the UK, Canada, India, China, Japan, Korea and Singapore are in various stages of the legislative process regarding AI. With regulatory responses to AI fraud escalating, CCS Insight predicted that 2024 could be the year when law enforcement makes the first arrest for AI-based identity fraud.

News URL

https://www.helpnetsecurity.com/2024/07/18/ai-powered-synthetic-identity-fraud/