Socure, Scienaptic AI and SentiLink make strides in catching synthetic identity fraud

Socure has announced its success in catching synthetic identity fraud in 2023, while a collaborative effort between Scienaptic AI and SentiLink can help credit unions combat fraud.

Socure eliminated 200,000 synthetic identities in 2023

Socure has announced it has eliminated 204,536 synthetic digital identities from the U.S. economy in 2023 through its Sigma Synthetic Fraud product, double its initial 100,000 commitment. The product has prevented over $3 billion in losses, according to internal company research.

Synthetic identity fraud combines stolen, altered, and fabricated PII to create a new fake identity that can be used for fraud and money laundering. Synthetic fraud could cost as much as $23 billion in losses by 2030, according to Deloitte Insights.

An overwhelming majority of synthetic identities were found in the gig economy, small business banking, telecom, cryptocurrency and challenger banks.

Socure notes, not coincidentally, that its Sigma Synthetic V4 uses third-party and network feedback data to uncover patterns linked to synthetic identity fraud. The newest model uses “proof of life” data sources such as property records, driver’s licenses, and educational data, improving verification access for younger and immigrant demographics with a smaller digital footprint.

Scienaptic AI and SentiLink announce synthetic identity fraud product

Scienaptic AI, an AI-powered credit underwriting platform provider, and identity verification provider SentiLink have come together to create a product to address synthetic identity fraud in digital lending for credit unions.

In 2023 alone, as many as 1.8 million consumer credit accounts have potentially been compromised by synthetic identity fraud, according to research from SentiLink. Over 30 percent of the compromised accounts were at risk of major delinquency or charge-offs, which have average losses ranging from $8,000- $10,000 per incident.

The tools will help credit unions identify fraudulent applications to preserve the integrity of the lending process. Existing members can re-verify their identities when PII changes on an already existing account.

“Our analysis has shown that over 15% of synthetic identities specifically target credit unions,” says SentiLink Head of Alliances Development Vivek Ahuja.

“Our risk solutions, which are designed to detect identity theft and synthetic fraud at the point of application, form the core of this partnership,” he continues, noting the collaboration will enable “financial institutions to approve more members safely, without introducing unnecessary friction into the onboarding process.”

Article Topics

digital identity  |  financial services  |  fraud prevention  |  Scienaptic AI  |  SentiLink  |  Socure  |  synthetic identity fraud