Synthetic Identity Payments Fraud

The Federal Reserve has published a series of three Payments Fraud Insights white papers and hosted a number of webinars to discuss the growing issue of synthetic identity payments fraud and its impact across the financial services industry. Select and view the white papers below.

Defining Synthetic Identity Payments Fraud
Read our white paper for facts and figures on this growing type of fraud – and learn why it’s growing.

Detecting Synthetic Identity Payments Fraud
Explore behaviors and characteristics that indicate potential synthetic identities.

Mitigating Synthetic Identity Payments Fraud
Learn how organizations can work to identify and mitigate synthetic identity payments fraud.

A synthetic identity (PDF) is created by using a combination of real information (such as a legitimate Social Security number) with fictional information (which can include a false name, address or date of birth). Fraudsters increasingly use synthetic identities to commit payments fraud. However, this type of fraud often is difficult to prevent or detect. The financial sector relies on static, often-compromised personally identifiable information. And financial institutions may not realize fraud has been committed, because ineffective fraud detection methods may portray these synthetic identities as credit-worthy account holders.

Through this initiative, the Federal Reserve and industry stakeholders seek to collaboratively reduce synthetic identity payments fraud in the United States over time. To stay up to date on this initiative, submit or update your FedPayments Improvement Community profile to update your preferences and select “Payment Identity Management” as a topic of interest.

Stay Engaged

On Wednesday, July 29 from 2 to 3 p.m. ET, the Federal Reserve will host a webinar, Synthetic Identity Fraud Mitigation: One Approach Does Not Fit All.

Synthetic identity fraud accounts for billions in credit losses annually. Fraud experts say the most effective approach to detection and mitigation of this type of fraud is a multi-layered strategy that involves better data, technological efficiency and information sharing. Join our webinar to hear our panel discuss synthetic identity fraud, how to detect synthetic identities in your portfolio and potential mitigation approaches.

Our expert panel will feature:

  • Jim Cunha, Senior Vice President, Federal Reserve Bank of Boston
  • Greg Woolf, Chief Executive Officer,
  • Jack Lynch, Chief Risk Officer, Payment Systems for Credit Unions (PSCU)

To stay up to date on this initiative, submit or update your FedPayments Improvement Community profile to update your preferences and select “Payment Identity Management” as a topic of interest.