Synthetic 2.0: Evolving Identities Challenge Fraud Prevention

Synthetic identity fraud (SIF) is one of the fastest growing forms of fraud over the last half decade, fueled by generative AI and evolving quickly in response to regulations. Consequently, SIF is increasingly a barrier to growth for banks as well as a competitive differentiator to increase market share. Unfortunately, mistaken notions of a “victimless crime,” a lack of standardized taxonomies, and a highly fragmented response by industry has created a much deeper exposure to SIF losses than most financial institutions realize. Strategic investments in onboarding and vendor management are essential for banks to get a handle on this threat and position themselves as market leaders. 

Key questions discussed in this report:

• How can financial institutions accurately assess their current SIF losses and future exposure?
• What are the most cost-effective onboarding strategies to mitigate SIF?
• How can financial institutions effectively position themselves within the evolving industry response to SIF?