Much of the identity fraud we hear about is based on completely fictional, made-up identities. Synthetic ID fraud is different. It’s when a fraudster pieces together bits and pieces of real identities—a date of birth from one person, a social security number from another person, and so on—to build a complete identity. This “synthetic” identity is then used to sign up for your services.
Here’s the catch: these people never have any intention of ever paying for your services. Chances are, you’ll never find them because the identity is fake—and you’ll end up having to write off the account.
$25 Million is Tip of the Iceberg
So, how big of an issue is synthetic ID fraud? In an Equifax sample study of the communications and energy industries, potential losses totaled $25 million a year. In general, it’s costing businesses an estimated $700 million, but that’s not even the worst of it. According to our numbers, synthetic fraud is growing at a rate of 17 percent each year.
Take Control and Fight for Your Bottom Line
In the infographic, Scoping Out Synthetic ID Fraud for Communications and Energy Providers, we reveal the numbers behind synthetic identity fraud and offer practical tips to protect your bottom line. You’ll learn how to:
- Identify up to 99 percent of your user audience by using multiple, unique databases to verify customer identities
- Detect suspicious patterns sooner and decrease false positive rates by 25 percent by using analytics-based tools
In conclusion, take a minute to educate yourself about the growing trend of synthetic fraud and how it impacts the communications, energy and home security industries.