In Part One of this series, we examined the surprising ways the COVID-19 pandemic affected synthetic identity fraud. (For more detailed information, download the report from the Aite Group.) In Part Two, we offer recommendations for businesses looking to mitigate synthetic identity fraud — where criminals combine real and fake information to create a new identity to open fraudulent accounts and make fraudulent purchases.
Whatever happens in 2021, one thing’s for certain: Detecting and eliminating synthetic identities is likely to become more challenging as digital fraud continues to become more sophisticated. By following these recommendations, however, you’ll be well- positioned to protect your business and consumers.
- Use analytics to drive synthetic fraud risk detection. Models and predictive attributes have proven highly effective in reducing synthetic fraud risk for lenders, mobile carriers, rental screening firms and others. Predictive models like TruValidate Synthetic Fraud Model proactively flag suspected synthetic identities while limiting the impact to good consumers — ultimately providing a friction-right experience.
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