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Criminals use gen ai to quickly create synthetic identities and make these fake identities seem more like real people so it’s easier to use them to steal The proportion of new accounts associated with synthetic identities surged by 18% over the previous year, affecting a variety of lenders ranging from auto loans to unsecured personal credit. Federal reserve payments fraud expert mike timoney discusses what synthetic identity fraud is and how it’s evolved.

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So, let’s clear up what it is A troubling trend for creditors became starkly clear in late 2024 and into 2025 While synthetic identity theft can involve any of your personal information, criminals often try to get your social security number (ssn) first

Then, they use your stolen ssn along with made up details to apply for anything from loans and credit cards to unemployment benefits and social security benefits.

The percentage of synthetic identities among accounts opened by u.s Fraudsters use synthetic identities to open bank accounts, secure loans, obtain credit cards, and conduct other financial transactions without raising immediate suspicion Because these identities seem legitimate on the surface, detecting them has become increasingly difficult. Learn how synthetic identity fraud is reshaping cybersecurity and financial systems, and what businesses and individuals can do to prevent it.