Synthetic identity fraud combines stolen, manipulated and fabricated attributes, such as name, address, phone, date of birth, and Social Security number, to assemble an entirely new and fictitious identity to defraud financial institutions, fintechs, government agencies, and other enterprises. The Deloitte Center for Financial Services projects synthetic identity fraud to generate at least $23 billion in losses in the U.S. by 2030.
Bad actors use synthetic identities to apply for loans, open multiple accounts, build up a positive credit score and steal government benefits, appearing to be good customers until cashing in by using up all available credit lines and disappearing. They’re also used for money laundering through prepaid cards, gift cards and traditional bank accounts as “money mules” by transnational organized crime rings, moving illegally acquired funds while making tracing nearly impossible.
Socure’s pledge to eliminate 100,000 synthetic identities in 2023 was noble, but also ambitious,
said Julie Conroy, Chief Insights Officer at Datos Insights.
Achieving twice as many is a profound warning sign that this type of fraud is even more widespread than we had initially believed. Synthetic identities are everywhere and extremely difficult to detect, and the faster the industry acts the better chances we’ll have of weeding them out while avoiding monumental costs to the financial services ecosystem.
The Socure mission is to deliver the world’s most accurate and inclusive risk and identity verification solutions. Eradicating synthetic identity fraud is a key part of why we exist
said Johnny Ayers, founder and CEO of Socure
These crimes not only drive billions of dollars in losses across the economy, but also contribute to unfathomable financial crimes including money laundering schemes used for human trafficking and illegal drug operations. While identifying malicious synthetic identity behavior has become more complex than ever before as consumers continue to grow their digital footprints, this year’s achievement is proof that our approach is working.
About Socure
Socure is the leading provider of digital identity verification and fraud solutions. Its AI and predictive analytics platform applies artificial intelligence and machine learning techniques with trusted online and offline data intelligence to verify identities in real-time. Socure is the only vertically integrated identity verification and fraud prevention platform with both IAL-2 and FedRAMP Moderate certifications, delivering advanced levels of assurance and the highest standards for security and compliance.The company has more than 1,900 customers across the financial services, government, gaming, healthcare, telecom, and e-commerce industries, including four of the five top banks, the top credit bureau and more than 400 fintechs. Organizations including Chime, SoFi, Robinhood, Gusto, Public, Poshmark, Stash, DraftKings, and the State of California trust Socure for accurate and inclusive identity verification and fraud prevention. Learn more at socure.com.
Media Contact
Mike Bradley
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socure@methodcommunications.com
