Synthetic identity fraud (2024)

FAQs

What is the synthetic fraud score? ›

Recognize Synthetic Identity Fraud Risk

The risk score ranges from 001 – 998, where the lower the score, the lower the risk. up to six indicative fraud risk warning codes that pinpoint specific high-risk conditions to enable investigative teams to efficiently prioritize investigation and review queues.

High number of recent credit inquiries, which could indicate the fraudster is attempting to quickly build credit. Mismatch between the accountholder's age and duration of credit history. Inflation of credit file depth. Suspicious mailing address.

Leverage Digital Footprint Analysis

Online digital footprint analysis is designed to identify people without relying on ID documents or biometrics. It's a fantastic way to pre-screen for KYC checks, but also to instantly flag potential synthetic ID fraud.

As for number one this is relatively easy. Don't use any programs that automate your usage of the merchant's website (i.e scripts, botting), don't use a fake IP address as websites can easily detect which IP addresses belong to which VPN companies as well as detect addresses coming from the TOR network.

The calculation uses predetermined factors to identify attempts of fraud before they happen. Things like bot detection and address mismatch go into the fraud scoring system. While fraud scores work in real-time, sometimes manual review is required to prevent false positives in their machine learning algorithms.

More research still indicates that nearly half (46%) of global organizations have experienced synthetic identity fraud in the past 12 months. The banking sector is most vulnerable, with nearly all (92%) of surveyed financial institutions perceiving synthetic identity fraud as a real threat to their business.

For example, the synthetic may have a real, “shippable” address and the SSN may appear valid, but the SSN, name, and date of birth combination do not match with any one person.

What are the warning signs of synthetic identity theft? ›

One reason that synthetic ID theft can be difficult to catch is that fraudsters may target individuals who don't use credit as often, such as children or the elderly.

Fraud Prevention

By scanning IDs and detecting forgeries, banks can prevent criminals from gaining access to financial services and avoid losses due to fraud. In addition to preventing fraud, ID scanning and forgery detection can also help banks detect and prevent money laundering.

Combined with our SmartCapture SDK, which uses multiple signals through a device capture to check genuineness of a document, Onfido's document verification provides an advanced and constantly evolving defense against fraud.

Unlike credit scores, which rely on an individual's credit history, fraud scores consider multiple factors such as transaction type, amount, location, and the customer's history of fraud. A higher fraud score implies a greater likelihood of fraudulent activity.

A synthetic alert means the information you've provided on a financial application doesn't match what's in your credit report. When you apply for credit, the bank will often pull your credit report and check its own database for information on you.

A fraud risk threshold above which to prevent orders completing checkout must be set. This number is on a scale from 0 to 100, with 100 being very high fraud risk. The default value is 20.