The Hidden Costs of Synthetic Identity Fraud
Synthetic identity fraud (SIF) schemes create identities out of real and fake personally identifiable information (PII). These schemes can be difficult to detect as they combine completely valid information with fictitious, yet established, e-mail and social media accounts, for example. For businesses that rely on static PII as a fraud stopgap, SIF accounts can be extremely difficult to spot and interdict.
GIACT’s latest white paper highlights the emerging threats that synthetic identify fraud poses to businesses and consumers. The credit card industry alone lost $6 billion to synthetic identity fraud (SIF) in 2016.
To combat SIF, the white paper details ways for businesses to understand how SIF is being executed and what security measures may stem the flow of losses.
Some best practices include:
- Improve communication to ensure effective verification
- Know what to look for to thwart SIF schemes
- Empower your employees with fraud detection tools
- Validate identity on an ongoing basis — not just at enrollment