Synthetic Identity Fraud: Interview with a Detective (Video)

I recently had the opportunity to sit down with Jesse Gossman, a Police Detective in South Florida, Certified Fraud Examiner, and president of the counter-fraud consulting group Bottom Line Fraud to ask him, “What’s going on with synthetic identity fraud?”

In this first of three videos, Jesse shares how an investigation into a case of suspected identity fraud led to his discovery of how synthetic identities are used, and the risks associated with Credit Profile Numbers (CPNs). While synthetic identity fraud may be considered synonymous with organized fraud, there can also be an element of naiveté on behalf of individuals who believe CPNs are a legitimate means to get a second chance to build a credit profile.

Jesse shares how application and new account fraud can be perpetrated by a single synthetic identity to cause hundreds of thousands of dollars in losses within a matter of weeks. Auto lenders are being hit hard by synthetic identity fraud, particularly as synthetics are difficult to detect for customer service representatives when they present with a good credit history and falsified documentation such as driver’s licenses or forged paystubs.

For more information on application fraud and how to fight it, check out the posts in my series.

Trends in Application Fraud – From Identity Theft to First-Party Fraud

Best Practices in Establishing Your Fraud Risk Appetite

ELI5: How Does the Dark Web Work?

What Data Do I Need to Fight Application Fraud?

Best Practices in Fraud Management: Q&A with Bob Shiflet

Preventing Application Fraud with Machine Learning and AI

4 Success Factors for Machine Learning in Fraud Detection

Application Fraud: The Role of AI and Machine Learning

How To Fight Identity Fraud: Q&A with Andy Procter