Here's How Synthetic Identity Fraud Detection Is Possible

Fraudsters are creating elaborate false identities using real personal information to commit crimes. How can synthetic identity fraud be detected and stopped?
By 

Daniël de Jager

 on October 2, 2022. 
Reviewed by 

Joshua Genuth

Identity fraud, similar to identity theft, occurs when someone unlawfully uses someone else's personal information to commit fraud or other crimes. Synthetic identity fraud involves the construction of elaborate false identities that use real personal information to appear legitimate.

Though fraudsters aren't stealing an actual identity in this process, they are using specific pieces of real information which make it very hard for a business to discern such fraud. It's also much harder to notify victims of fraud if the fake identity is constructed from multiple real ones.

Fraudsters use a synthetic ID to cloak their true identities while committing crimes like stealing digital goods or opening fraudulent accounts. Together with a cloaked IP address and other advanced tools, fraudsters can do real damage without the business realizing it has been hit by fraud until well after the fact.

How to Detect Synthetic Identity Fraud

Synthetic identity fraud is a complex and relatively new form of identity fraud, and it's very difficult for existing solutions to control. Often, a human analyst must tediously sort through mounds of information to figure out what's going on. Even then, synthetic IDs appear legitimate and the fraud may only be revealed by in-depth metadata analysis.

The best option is to use a fraud protection platform like nSure.ai. nSure.ai's predictive AI fraud detection uses machine learning to catch fraudsters before they act, without affecting legitimate customers. Any merchants looking for guaranteed chargeback coverage and a 98% approval rate should look no further.