Synthetic Identity Fraud
Fraud committed using a fabricated identity that combines real and fake information to pass verification and open accounts.
Synthetic identity fraud uses a manufactured identity — often a real Social Security number paired with a fabricated name and date of birth — to pass verification, build credit, and eventually default or cash out.
Why it is hard to stop
Because parts of the identity are real, synthetic identities frequently clear KYC and fraud scoring. They can be nurtured for months, making them look like good customers before the bust-out. Detection reduces the frequency, but some synthetics are always approved as legitimate.
The insurance angle
The residual synthetic-fraud loss that beats detection is exactly what Identity Fraud Loss Insurance covers — turning an unpredictable write-off into an insurable claim. Size your exposure with the ROI estimator.
Account Takeover (ATO)
A form of third-party fraud where an attacker gains control of a legitimate account and uses it to transact or extract value.
Chargeback Liability
The financial responsibility a business bears when a customer disputes a transaction and the payment is reversed.
False Decline
A legitimate customer wrongly rejected by fraud controls — a hidden revenue loss that grows as thresholds tighten.
First-Party Fraud
Fraud in which a real person uses their own or a manipulated identity to obtain goods, credit, or services they never intend to repay.