Synthetic Identities, also known as SIDs are then used by cybercriminals to defraud various types of organizations. Fraudsters use these identities to apply for credit accounts, and the identity is then reported to credit reporting agencies, creating a new record associated with the fraudulent information.
In recent years, fraudsters have become more devious, creating profiles with minimal barriers to entry — grocery shopping apps, social media profiles, etc. — to make these identities appear legitimate. Once approved, SIDs behave like legitimate accounts and are often not flagged as suspicious by usual fraud detection tools. Because there’s no victim to discover and report the fraud, these identities tend to go unnoticed.
To avoid being the next SID fraud target, download this whitepaper now to learn more about:
- How to create a fraud prevention tool without overreliance on any one tool or solution
- Looking beyond credit reports to catch this type of fraud
- Watching out for SID fraud signals