Understanding Synthetic Identity Fraud and How Footprint Can Help

Synthetic identity fraud is a sophisticated type of fraud that involves creating a fake identity by combining real and fake information. This can include using a real Social Security number with a fake name, date of birth, and address.

The goal of synthetic identity fraud is to create a new identity that can be used to open bank accounts, apply for loans, and make purchases, all while avoiding detection by traditional fraud monitoring systems.

What is Synthetic Identity Fraud?

Synthetic identity fraud can be difficult to detect because the fake identity is often designed to look legitimate. Thieves may use stolen Social Security numbers from children, the elderly, or homeless individuals, who may not be actively using their credit or monitoring their credit reports.

This can make it harder to detect the fraud, as there may not be any obvious signs of suspicious activity. You can learn more about how to create a synthetic identity in our step-by-step guide.

Synthetic identity theft is a growing concern, with losses estimated to be in the billions of dollars. It is often used to commit financial fraud, such as applying for loans or credit cards and then defaulting on payments.

It can also be used to hide from authorities or to commit other types of crimes. Learn more about synthetic identity theft and account takeover vs identity theft.

Protecting Against Synthetic Identity Fraud

To protect against synthetic identity fraud, it is essential to secure your Social Security number and other personally identifiable information (PII).

This can include shredding documents that contain sensitive information, using digital security software, and being wary of phishing scams and social engineering attacks. Regularly reviewing your credit reports and monitoring your credit scores can also help to detect any suspicious activity.

If you suspect that you are a victim of synthetic identity theft, it is crucial to report the crime to the authorities and to take steps to protect your credit and identity.

This can include placing a fraud alert on your credit reports, freezing your credit, and using a credit monitoring service.

How Footprint's Solution Can Help Prevent Synthetic Identity Fraud

Footprint offers a comprehensive solution to help prevent synthetic identity fraud, positioning itself as the leading choice in the industry. Our all-in-one onboarding platform includes:

• KYC (Know Your Customer) verification: Verify the identity of your customers using government-issued IDs and biometric data, ensuring a robust and accurate identity verification process. Learn more about KYC onboarding process and Know Your Customer (KYC).
• Fraud prevention: Use machine learning algorithms to detect and prevent fraudulent activity, leveraging native device experiences and strong cryptography to provide a secure and user-friendly onboarding experience. Learn more about fraud detection tools in banking and biometric authentication.
• Real-time risk-based friction adjustment: Adjust the level of friction in the onboarding process based on the risk level of the customer, utilizing Apple and Google's device attestation frameworks to detect and prevent fraud.
• Customizable and embeddable components: Easily integrate our solution into your existing onboarding process, providing a seamless integration of onboarding with vaulting, enabling businesses to securely store sensitive user data and access it with a single identifier (fp_id).
• Continuous AML (Anti-Money Laundering) monitoring: Monitor customer activity for suspicious behavior and report it to the authorities, ensuring compliance and minimizing costs. Learn more about AML compliance, AML (Anti-Money Laundering), and Financial Conduct Authority (FCA).

Why Footprint Stands Out from the Competition

Footprint's unique approach sets it apart from competitors, including Persona, Onfido, and Alloy. Our solution offers customization, UX, and comprehensive protection to help prevent synthetic identity fraud.

With Footprint, you can confidently onboard customers, prevent fraud, and ensure compliance, ultimately driving growth and success.

Best Practices and Recommendations

To effectively prevent synthetic identity fraud, we recommend the following best practices:

• Use a comprehensive identity verification solution that includes KYC, fraud prevention, and AML monitoring, such as Footprint's all-in-one onboarding platform. Learn more about KYC tools and identity verification software.
• Regularly review and update your identity verification processes to stay ahead of emerging threats, leveraging Footprint's innovative approach to identity verification and onboarding.
• Use machine learning algorithms to detect and prevent fraudulent activity, utilizing Footprint's triple binding identity approach and device attestation frameworks. Learn more about behavioral biometrics and multi-factor identification (MFA).
• Adjust the level of friction in the onboarding process based on the risk level of the customer, using Footprint's real-time risk-based friction adjustment.
• Continuously monitor customer activity for suspicious behavior and report it to the authorities, ensuring compliance and minimizing costs with Footprint's continuous AML monitoring. Learn more about ongoing monitoring KYC, Customer Due Diligence (CDD), and Enhanced Due Diligence (EDD).

By following these best practices and using a comprehensive identity verification solution like Footprint, you can help prevent synthetic identity fraud and protect your customers' identities.

Frequently Asked Questions

What is synthetic identity fraud?

Synthetic identity fraud is a sophisticated type of fraud that involves creating a fake identity by combining real and fake information. This can include using a real Social Security number with a fake name, date of birth, and address.

How is synthetic identity fraud committed?

Synthetic identity fraud is committed by creating a new identity that can be used to open bank accounts, apply for loans, and make purchases, all while avoiding detection by traditional fraud monitoring systems. Thieves may use stolen Social Security numbers from children, the elderly, or homeless individuals, who may not be actively using their credit or monitoring their credit reports.

How can I protect against synthetic identity fraud?

To protect against synthetic identity fraud, it is essential to secure your Social Security number and other personally identifiable information (PII). This can include shredding documents that contain sensitive information, using digital security software, and being wary of phishing scams and social engineering attacks. Regularly reviewing your credit reports and monitoring your credit scores can also help to detect any suspicious activity.

What should I do if I suspect I am a victim of synthetic identity theft?

If you suspect that you are a victim of synthetic identity theft, it is crucial to report the crime to the authorities and to take steps to protect your credit and identity. This can include placing a fraud alert on your credit reports, freezing your credit, and using a credit monitoring service.

How can Footprint's solution help prevent synthetic identity fraud?

Footprint offers a comprehensive solution to help prevent synthetic identity fraud, including KYC (Know Your Customer) verification, fraud prevention, and AML (Anti-Money Laundering) monitoring. Our solution uses machine learning algorithms to detect and prevent fraudulent activity, and provides real-time risk-based friction adjustment and continuous AML monitoring.

What are some best practices for preventing synthetic identity fraud?

To effectively prevent synthetic identity fraud, we recommend using a comprehensive identity verification solution that includes KYC, fraud prevention, and AML monitoring. Regularly reviewing and updating your identity verification processes, using machine learning algorithms to detect and prevent fraudulent activity, and continuously monitoring customer activity for suspicious behavior are also best practices.

How does Footprint's solution stand out from the competition?

Footprint's unique approach sets it apart from competitors, including Persona, Onfido, and Alloy. Our solution offers customization, UX, and comprehensive protection to help prevent synthetic identity fraud. With Footprint, you can confidently onboard customers, prevent fraud, and ensure compliance, ultimately driving growth and success.