Loading...

Fake customers present real risk

Published: October 26, 2017 by Guest Contributor

Synthetic identity fraud is on the rise across financial services, ecommerce, public sector, health and utilities markets. The long-term impact of synthetic identity remains to be seen and will hinge largely upon forthcoming efforts across the identity ecosystem made up of service providers, institutions and agencies, data aggregators and consumers themselves.

Making measurement more challenging is the fact that much of the assumed and confirmed losses are associated with credit risk and charge offs, and lack of common and consistent definitions and confirmation criteria. Here are some estimates on the scope of the problem:

  • Losses due to synthetic identity fraud are projected to reach more than $800 million in 2017.*
  • Average loss per account is more than $10,000.*
  • U.S. synthetic credit card fraud is estimated to reach $1.257 billion in 2020.*

As with most fraud, there is no miracle cure. But there are best practices, and topping that list is addressing both front- and back-end controls within your organization.

Synthetic identity fraud webinar>

*Aite Research Group

Related Posts

Learn what lending fraud is, what you can do to safeguard your organization and consumers and how we can help. Read more!

Published: August 7, 2025 by Laura Burrows

Experian is proud to be a Thought Leadership Sponsor at this year’s Federal Identity Forum & Expo. Meet us on site at FedID!

Published: August 1, 2025 by Kim Le

Now in its tenth year, Experian’s U.S. Identity and Fraud Report continues to uncover the shifting tides of fraud threats and how consumers and businesses are adapting. Our latest edition sheds light on a decade of change and unveils what remains consistent: trust is still the cornerstone of digital interactions. This year’s report draws on insights from over 2,000 U.S. consumers and 200 businesses to explore how identity, fraud and trust are evolving in a world increasingly shaped by generative artificial intelligence (GenAI) and other emerging technologies. Highlights: Over a third of companies are using AI, including generative AI, to combat fraud. 72% of business leaders anticipate AI-generated fraud and deepfakes as major challenges by 2026. Nearly 60% of companies report rising fraud losses, with identity theft and payment fraud as top concerns. Digital anxiety persists with 57% of consumers worried about doing things online. Ready to go deeper? Explore the full findings and discover how your organization can lead with confidence in an evolving fraud landscape. Download report Watch on-demand webinar Read press release  

Published: August 1, 2025 by Julie Lee