One of the fastest growing fraud technic is the Synthetic Identity Fraud.
This particular method consist on several different cases it may be by using real data (such as social security numbers) to assume the identity of a person an therefore accessing credit and other financial products by means of the old fashion identity theft.
In certain cases, the identity theft may include creating a digital persona in social networks and is on to create a scheme of credibility over the existence of the fraudulent persona.
Other common way is to create from scratch a synthetic person by using non-assigned social security numbers and therefore creating a new person or stealing data from children to then apply such data to their synthetic creation.
On this case, an initial loan will be requested to create a credit history, which then will be used to create further debt.
Those cases are not reported as the real individual is not aware of the existence of the synthetic persona or given its nature (E.G. a child) the issue will not surface for a number of years.
One more case reported on a cyber media outlet mentions the use of 3 dimensional printing to create a synthetic 3 dimensional figure to represent human faces in order to trick facial recognition softwares.
This will be a new struggling point to Fintechs producing digital on-boarding products, solutions and services when human interaction is not including during the onboarding process.
According to the reported information, 61% of fraud losses affecting large banks occurs for identity fraud reasons.
Furthermore, as per now, 20% of such cases are linked to Systemic identity fraud.
The current estimation set as high as $6 Billion in losses linked to Synthetic Fraud in the USA only.
