Glossary term
Synthetic Identity Fraud
Definition
Synthetic identity fraud is the creation of a new, fictitious identity by combining real elements (often a valid SSN or national ID number) with fabricated names, documents, and increasingly AI-generated faces. Unlike classic identity theft, there is no real victim to report the fraud — the identity belongs to no one.
Why it matters for financial institutions
Synthetic identities are widely cited as the fastest-growing financial crime in the US, because they exploit automated account opening: the fraudster builds credit history patiently, then "busts out" with maximum loans and disappears. AI-generated ID photos and deepfake selfie checks have removed the last manual hurdle, and losses land squarely on the institution since no consumer disputes the account.
How FalsiFind addresses it
FalsiFind screens onboarding media for the AI-generation signals synthetic identities depend on — generated or manipulated ID document images and synthetic faces in selfie and video checks — flagging applications for enhanced review before the account, and the credit line, ever exists.