Detecting Synthetic Identity Fraud

Synthetic Identity Fraud is the fastest-growing financial crime in the U.S. Payments System. SynthID™ Detect identifies fraud and cyber threats at your financial institution in real time

Detecting Synthetic Identity Fraud

Synthetic Identity Fraud is the fastest-growing financial crime in the U.S. Payments System. SynthID™ Detect identifies fraud and cyber threats at your financial institution in real time

What is Synthetic Identity Fraud? 

In SIF schemes, criminals use a combination of real and falsified data to create and cultivate fictitious accounts as a precursor to subsequent fraud and criminal activity. This cobbling together of personal information makes the fraudulent activity difficult and time consuming to detect. Synthetic ID’s behave like legitimate accounts and may not be flagged as suspicious using traditional fraud detection models. This allows fraudsters to cultivate these fake identities, build positive credit histories, and increase their borrowing or spending power before “busting out” – maxing out their credit lines with no intention to repay-security threats and potential risks to the financial system at large.

As detailed in The Federal Reserve White Paper, Mitigating Synthetic Identity Fraud in the U.S. Payment System.

SynthID™ Detect

The stakes continue to get higher, and the fraudsters and other bad actors are getting smarter. Fight back and safeguard with SynthID™ Detect.

FiVerity’s solutions apply advanced automation and machine learning techniques to personal identify information (PII) and thwart sophisticated types of financial fraud, like Synthetic Identity Fraud (SIF), which authorities cite as the fastest growing type of cyber fraud in the financial sector today.

Our solutions’ core objective is ‘scaling the analyst’ which provides full transparency. To leverage human analysts’ experience, FiVerity products use intelligent automation that continuously learns from these expert business users and improves upon their approaches and techniques in real time. It observes and captures their strategies and tactics for detecting fraud in new account opening and uncovers patterns that are the telltale signs of other types of financial crimes.

Testimonial 

“FiVerity’s approach to fraud prevention through machine learning is unlike other industry solutions. Fraud continues to evolve, and by leveraging their feedback loop, we are able to train the models in real time which in turn adapts. 

Synthetic identities are not a new problem, but they are one lacking real solutions and FiVerity’s SynthID is just that. In the first 6 months SynthID has identified $2MM worth of fraud, which resulted in an overall lift in fraud prevention rates of more than 10%”

Justin Davis, CFE
DCU

Justin Davis, CFE
Fraud & BSA Manager

Why does your financial institution need protection?

Legacy fraud detection systems are slow, bogging-down with especially new account openings, which often require as much as 40% manual intervention. That not only increases costs and effectiveness, but slows their response times, which can easily cause prospective customers to take their business elsewhere.

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Synthetic Identity Fraud is estimated as more than $12B in losses for 2020

Synthetic ID’s cause 25% of loan losses from 2% of consumer loans

SynthID™  identifies more than 35% of synthetics during the account opening process

HOW CAN WE HELP YOU?

Interested to learn how FiVerity can help your business? Get in touch with us or request a demo to learn more.