Over the past decade, spanning from 2014 to 2024, cases of identity theft have become increasingly sophisticated and deceptive. From Tinder scams to Robin Hood frauds, and data breaches akin to spilled secrets, the landscape of identity theft has evolved, with phones becoming susceptible to hijacking, and social media platforms transforming into playgrounds for scammers. These are some insights into trends and significant cases from the past decade:
Overall Rise:
- Identity fraud and fraud cases have nearly tripled over the last decade, according to IdentityTheft.org.
- The Federal Trade Commission (FTC) reports a steady increase in reported cases, reaching 5.7 million in 2023.
Major Trends:
- Cybercrime: Phishing, vishing, and smishing attacks are at the forefront, tricking victims into revealing personal information.
- Data Breaches: Compromised databases expose large amounts of data, making individuals vulnerable.
- Financial Fraud: Credit card fraud remains a major concern, though other forms like loan and account takeover are emerging.
- Social Media: Identity theft targeting online accounts has risen with increased social media activity.
Notable Cases:
- Tinder Swindler: A Netflix documentary about a con man who defrauded women on the dating app.
- Phillip Cummings: Stole 33,000 credit reports, causing millions in losses.
- Nicole McCabe: Framed for assassination due to stolen identity.
- Abraham Abdallah: Scammed victims with “Robin Hood” persona.
- SIM Swapping Scams: Criminals hijack phone numbers to access accounts.
- Large data breaches: Companies like Equifax and Yahoo exposed millions of individuals’ data.
For some people, creating a whole new identity from scratch sounds like something from a science fiction story. However, this phenomenon called synthetic identity fraud often flies under the radar as it doesn’t necessarily rely on stealing a complete identity but rather manipulates data to construct new, fraudulent identities. To find more ways to spoof systems, fraudsters have devised a tactic that involves combining a victim’s stolen identity with falsified information to create a synthetic identity that is completely fictitious and much harder to detect.
So, how dangerous is synthetic identity fraud? This is your call to arms, a deep dive into the murky world of identity theft, where we’ll expose the tricks, equip you with shields, and show you how to take back your digital life, pixel by pixel.
What is Synthetic Identity Fraud?
Synthetic identity fraud is a form of identity fraud that utilizes a combination of genuine identity (usually stolen) and fabricated identity to create a whole new fictitious identity. An example of synthetic identity fraud is using a legitimate Social Security Number (SSN) combined with a fictitious personal identity such as name, address, and date of birth. Another way fraudsters can create a new, fraudulent identity is by using and mashing multiple genuine identities.
You might think that you are safe from synthetic identity fraud as it only involves the US Social Security Number. However, fraudsters can manipulate all personal identification numbers, such as the Indonesian Nomor Induk Kependudukan (NIK), for use in synthetic identity fraud. This fraud can use any personal identity to create a synthetic identity, including your phone number, address, and even your name. That is why synthetic identity fraud is a serious concern, as you might not even be aware that your name and identity are involved in cybercriminal activity.
Ways Cybercriminals Can Get a Hand on Your Personal Information
Synthetic identity fraud is an increasingly alarming phenomenon. It can go undetected for a long time. It can also cause devastating consequences for businesses impacted by the fraud. Some of the ways it can get a hand on your personal information are:
- Data breaches. Personal data such as your name and identity number can be found on the dark web after a significant data breach.
- Social media. Cybercriminals can find your date of birth, address, and employment information through social media.
- Malware. A type of malware that enables fraudsters to spy on your device’s activities now exists, meaning that fraudsters can easily see the personal information you store on your device.
- Dumpster diving. Fraudsters usually search for packages with your name, phone number, and address.
According to the 2022 identity fraud study titled ‘The Butterfly Effect’ by Javelin Strategy and Research, losses from identity fraud in the United States amounted to a staggering US$43 billion in 2022, with synthetic fraud contributing US$3.36 billion (7%) of that total. This figure is projected to rise in the coming years. Therefore, implementing effective prevention measures is crucial.
How To Prevent Synthetic Identity Fraud?
Awareness of your personal information and where you put it is the most basic way to prevent synthetic identity fraud. This means being careful about what information you share online and only sharing it with trusted sources. It also means being on the lookout for scams and not giving out your personal information to anyone who asks for it.
Aside from that, businesses also have the responsibility to protect their customers from the threat of synthetic identity fraud. One way to do it is by implementing a secure identity verification measure to prevent anyone using a synthetic identity from accessing services provided. An example of a reliable system that businesses can use to fight identity fraud is True Identity Assurance.
Strengthen Your Security with True Identity Assurance
True Identity Assurance is a digital identity verification system. This system determines whether or not that person is genuine or fraudulent. True Identity Assurance consists of three main features:
Implementing True Identity Assurance in your business processes simplifies customer identity verification when opening new accounts, making large transactions, or accessing sensitive information.
Flag and Fight the Fraudsters with ASLI RI!
Synthetic identity fraud can occur in any industry, be it e-commerce, fintech, or any other digital-based business. As synthetic identity fraud is hard to detect, investing in a proper identity verification system should be kept in mind.
ASLI RI provides you with an inclusive and comprehensive solution against identity fraud, our True Identity Assurance system. In the True Identity Assurance system, our advanced AI-based EKYC system is paired with a state-of-the-art biometric verification and liveness detection system to ensure stronger and even more secure protection against identity fraud. If you’re interested in learning more about True Identity Assurance visit here. Join our fight against fraudsters now!
fraud prevention identity manipulation identity verification Synthetic identity fraud
Last modified: February 7, 2024
