A synthetic identity is a fabricated identity that combines real and fictitious personal information, forming a new digital persona that does not correspond to any real person. For example, a fraudster might combine a Social Security number (commonly from a child, elderly person, or deceased person) with a fake name, address, and date of birth. They often pass basic identity checks, and because no real person is being compromised, synthetic identities can exist for long periods of time, building credit history, before being used for large-scale fraud.
Use case/ examples for synthetic identity
Fraud ring behavior detection: Identifying patterns consistent with groups that engage in synthetic identity creation, such as multiple applications sharing common data elements, multiple newly established credit files with inconsistent histories, or addresses linked to numerous unrelated identities.
Credit application screening: Analyzing new credit applications for red flags that are commonly associated with synthetic identities, including the use of Social Security numbers issued recently or belonging to minors or deceased persons, thin credit files with a sudden burst of activity, or Social Security numbers that have inconsistent personal data across bureaus.
Identity verification enhancement: Layering biometric verification and document authentication with database cross-checks to better detect synthetic identities that might pass basic verification but show inconsistencies when they are cross-referenced.
