Finance & Banking , Fraud Management & Cybercrime , ID Fraud

Data Insights Are Key to Fighting Synthetic ID Fraud

Steve Lenderman on the Shift From Synthetic Identity to Synthetic Entity Fraud
Steve Lenderman, co-chair, Industry Working Groups, International Association of Financial Crimes, Investigators, and CyberEdBoard member

Synthetic IDs remain a problem not because of a lack of data but because of failure to identify the right data and establish correlations, said Steve Lenderman, co-chair of the Industry Working Groups for the International Association of Financial Crimes Investigators.

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"Synthetic identities are essentially data constructs that exploit the gaps in our data aggregation and analysis capabilities. Banks and businesses are often chasing shadows, trying to piece together information that, on its own, seems inconsequential," Lenderman said.

"The real challenge lies not in the lack of data but in identifying the right data and connecting these disparate dots to unveil the network of synthetic identities."

In the coming years, fraudsters are expected to shift their focus from synthetic identity fraud, which targets consumers, to synthetic entity fraud, which targets businesses, he said.

In this video interview with Information Security Media Group, Lenderman discussed:

  • The role of machine learning in analyzing patterns;
  • Why fraudsters are not concentrating on smaller banks;
  • The evolution of fraud methods and tactics.

Lenderman, who has more than 25 years of experience in the financial crimes sector, previously served as senior vice president of fraud prevention and investigations at Bank Mobile Technology. He is a member of the CyberEdBoard.

About the Author

Suparna Goswami

Suparna Goswami

Associate Editor, ISMG

Goswami has more than 10 years of experience in the field of journalism. She has covered a variety of beats including global macro economy, fintech, startups and other business trends. Before joining ISMG, she contributed for Forbes Asia, where she wrote about the Indian startup ecosystem. She has also worked with UK-based International Finance Magazine and leading Indian newspapers, such as DNA and Times of India.

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