In an effort to help combat the emergence of synthetic identity fraud (SIF) — reported to be one of the fastest-growing types of financial crime in the United States — the Federal Reserve convened a focus group of fraud experts to develop an industry-recommended definition of synthetic identity fraud.
Since the announcement of the definition in April, the Fed has been engaging with the industry to put the new definition to work and increase awareness of synthetic identity fraud across the payments ecosystem.
The Fed recently sat down with financial institutions, processors and fraud solution providers (Off-site) to explore how the definition is being used to help mitigate synthetic identity fraud in their organizations.
Minimizing reliance on personally identifiable information is a core component of our Privacy by Design approach. At the same time, the security of our network depends on our ability to look holistically at information related to transactions to validate a purchase or indicate possible fraud, including a number of the elements found in the synthetic identity fraud definition such as the digital footprint of a customer.
Senior Vice President of Fraud Intelligence and Strategy
Mastercard
Read the full article to learn more (Off-site) and hear directly from fraud experts on these continued and collaborative mitigation efforts.
