Synthetic identity fraud: What it is and how to prevent it

Synthetic identity fraud is a growing concern, becoming the number one threat to financial services in the near future. It involves creating fake identities that combine real personal information with fabricated data, often used to defraud financial institutions or individuals. The rise of synthetic identity fraud can be attributed to the vast amount of personally identifiable information available on the dark web and the difficulty in detecting these fake identities using traditional algorithms. To prevent this type of fraud, it is crucial to evaluate multiple sources of identification, use sophisticated neural networks, and run a host of fraud checks to detect other flags indicative of fraudulent activity.