As technology advances, so do the security risks. For instance, the possibility of attacks has also expanded with an increase in IoT devices. Cybersecurity teams are now struggling to monitor and secure all IoT devices. Hence, we see a surge in the number of attacks and fraudsters. One of the many tactics scammers and cyber attackers use is synthetic identity fraud.

Synthetic Identity Fraud: What Is It?

Synthetic Identity Fraud refers to using a combination of real and fake information to create new IDs and accounts. Traditionally, scammers had to either use their own or stolen IDs for this. But now, with the increasing number of data breaches and cyber threats, real information is readily available on the dark web.

After stealing data such as SSNs, cybercriminals upload it on the dark web, where anyone can buy it for as little as $1. Synthetic identity fraudsters buy this information and amalgamate it with fake details. The primary targets of these scammers are banks, where they apply for credit cards using fake IDs.

Even if the banks decline the credit card application, Credit Bureau creates a new profile with the SSN, thereby providing proof of existence for the person with the fake ID. The scammer applies for a small credit once a bank approves the credit card application.

After receiving the small amount, scammers make timely payments to increase their credit score. They apply for a more significant sum once they reach a good credit score, and eventually disappear. In traditional identity theft, the banks chased the person whose ID was used. But with synthetic identity fraud, since the ID was not real, the banks are left chasing ghosts.

Identity Verification: The Solution to Protect Your Organization

Manually identifying synthetic identities created with the help of technology is impossible. A human cannot map the ID with all the existing IDs to detect fraud. Hence, a robust technological solution is essential here. An AI-accelerated identity verification solution can prove to be the best here.

Identity verification solutions, like the one provided by AU10TIX, come with multiple validation layers to efficiently detect synthetic IDs. For instance, AU10TIX’s solution comprises the following layers:

• Identity document verification
• Face comparison
• Liveness detection
• NFC verification
• Internet of Things verification
• Steganography
• Multi-biometric comparison
• Public data verification
• Infinite verification
• XGEN

Due to the multiple layers, such identity verification solutions can identify even the most sophisticated synthetic identity thefts. Most such applications are also empowered with robust technologies like AI, deep learning, biometrics, data analytics, etc.

The Technology Behind Identity Verification

Blending capabilities of AI, deep learning, biometrics, and data analytics enable automatic detection of frauds within seconds. Here’s how some of these technologies help with effective, real-time authentication.

Deep Learning

Deep learning’s image processing capabilities are well known. Security teams can use it to compare the face image available in the biometric information with the user’s actual face.

Deep learning technology can also help with identity verification. Fraudsters usually accompany synthetic identity theft with falsifying documents. It helps to accelerate the credit building process. Deep learning can detect such falsified documents to alert fraud. Moreover, the technology can also improve over time to increase detection efficiency.

Near-Field Communication (NFC)

One of the latest technology used for identity verification is NFC. It is the technology used for contactless payments. NFC works by establishing protocols to enable communication between two devices within a small distance range.

Whenever a user scans an NFC chipped document, he or she has to click a photo. The devices communicate to match the face and other biometric information available through the NFC chip. Hence, the NFC technology can also help with liveness detection.

How Identity Verification Solutions Detect Synthetic Identities

Businesses can implement such identity verification solutions to detect and prevent synthetic identity frauds. For instance, when a bank implements a verification solution, it will check the live biometric information available with the fake details provided by the scammer, which will lead to a mismatch and raise an alert.

To get the best results from such solutions, you also need to have a robust KYC process in place. Weak KYC can lead to gaps, which fraudsters can exploit. Hence, to completely mitigate synthetic identity thefts, you need a solution that accesses and analyzes all the data points. With a complete 360° view, your security team can quickly detect potential synthetic identity frauds.

Final Thoughts

Experts predict that identity theft will worsen, and synthetic identity fraud will play a vital role. Relying on standard solutions to prevent traditional identity thefts is no more an option. You need technology-driven identity verification solutions. These solutions can cover all the possible aspects that can fuel thefts to provide comprehensive security.