What Exactly is Synthetic ID Theft and Fraud?

[Jeff Kershner]

Anyone familiar with Synthetic ID Theft and Fraud?

Identity theft and fraud utilizing "Synthetic ID fraud" is something I personally had never heard nor was aware of (term Synthetic ID) until a friend and former co-worker - Kelly - alerted me to it. Kelly landed a job with Equifax awhile back and was filling me on the what/how this newer form of ID theft is effecting automotive dealerships nationwide.

"Fraudulent synthetic identity accounts that go undetected for 24 months drive estimated total losses of $200 million per month across ALL industries — $2 billion annually..."

I added their 2 page overview on some of the statistics and risk assessment results to our DealerRefresh Resources. The 2 pager does also promote a new Equifax service - FraudIQ® - designed to help dealerships detect synthetic identity fraud earlier so dealers can:

• Avoid chargebacks
• Mitigate fraud losses
• Maintain lender relationships
• Better protect your bottomline

BUT the purpose of the resource is NOT to promote Equifax, but instead to help bring about more awareness to Synthetic ID fraud.

ANYONE aware of OR have been a victim of Synthetic ID fraud?

I've also included a few links to additional resources on the information around synthetic identity fraud:

What is synthetic identity theft and how does it work?

Learn how to stop fraudsters from using your personal information for synthetic identity theft.

www.lifelock.com

What Is Synthetic Fraud?

The word “synthetic” often refers to a product made to imitate something found in nature. Synthetic fraud is a complex form of identity theft in which the thing being imitated is a person. A fraudster combines a stolen Social Security Number (SSN) and fake information, such as a false name, incorrec

www.forbes.com

How Criminals Are Using Synthetic Identities for Fraud

Organizations must improve their cybersecurity protocols to detect fraudulent identities and make sure they're safeguarding their consumers’ personal information.

www.darkreading.com

Fraud & Authentication | Business | Equifax

Detect and mitigate fraud without disrupting the customer experience at any part of the customer journey with identity and fraud solutions from Equifax.

equifax.com

 

[Ken Luna]

At this point we (CreditMiner) are pretty familiar with Synthetic Fraud. It is a particularly insidious deception that is built over a period of months and in some cases, years. It is a crafted fake identity that is slowly nurtured over time to become what looks like a real person to dealerships and lenders. The articles you give are excellent. Their are many more for those who are interested. There are various levels of identifying these "frankenstenian" entities including extensive background and technical real time analysis. The best of these are highlighted by a report Javelin did in 2020 (I can send you if you like). These "checks" are good but not good enough in many cases. It actually takes a real time document check along with a "same time" proof of life selfie to really flush out or in reality, discourage these thieves.

We have heard various loss numbers in automotive but almost all are over 1 billion dollars a year! Interesting that something this huge has been layingin the weeds all this time. Maybe dealers and lenders don't want to discuss these losses? Regardless, the time is now to battle this problem. Please check your LinkedIn mail for more information. Thanks, Ken

 

[Jeff Kershner]

At this point we (CreditMiner) are pretty familiar with Synthetic Fraud. It is a particularly insidious deception that is built over a period of months and in some cases, years. It is a crafted fake identity that is slowly nurtured over time to become what looks like a real person to dealerships and lenders. The articles you give are excellent. Their are many more for those who are interested. There are various levels of identifying these "frankenstenian" entities including extensive background and technical real time analysis. The best of these are highlighted by a report Javelin did in 2020 (I can send you if you like). These "checks" are good but not good enough in many cases. It actually takes a real time document check along with a "same time" proof of life selfie to really flush out or in reality, discourage these thieves.

We have heard various loss numbers in automotive but almost all are over 1 billion dollars a year! Interesting that something this huge has been layingin the weeds all this time. Maybe dealers and lenders don't want to discuss these losses? Regardless, the time is now to battle this problem. Please check your LinkedIn mail for more information. Thanks, Ken

@Ken Luna - Thanks for adding this additional information behind Synthetic ID Fraud. Quite intense, fraud for the "long game."