AML Conversations Synthetic Identity Fraud- The Hidden Threat Behind the Data
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Aug 6, 2025 Join Amy Petric, a fraud patterns expert, and Ross Yellon, a global payment processing specialist, as they delve into the complexities of synthetic identity fraud. They reveal how fraudsters create fictitious identities using real data, making detection incredibly challenging for financial institutions. The discussion highlights the critical balance between automated systems and human oversight in combating these tactics. With insights on using technology and training staff to recognize red flags, this conversation sheds light on the ever-evolving landscape of fraud.
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Synthetic ID Defined
- Synthetic ID fraud combines real personal details to create a fake identity. - This new identity is an amalgamation, not just a simple fake.
Bust-Out Fraud Example
- Fraudsters use real Social Security numbers to open credit card accounts. - They perform bust-out fraud by maxing out credit and disappearing without paying.
Auto Loan Fraud Anecdote
- Synthetic IDs are used to apply for auto loans with false data. - Fraudsters obtain loans but never make payments, leaving banks at a loss.