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Synthetic Identity Fraud Targeting Automotive Lending Sector

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Last updated
1 unique sources, 1 articles

Summary

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Financial firms, particularly those in the automotive lending sector, are experiencing increased fraud from synthetic identities. Cybercriminals are leveraging detailed data from numerous breaches to create more convincing profiles. The total financial risk for lenders in the United States rose to $3.3 billion in 2024, up from $1.9 billion in 2020. Synthetic identities are used in up to 1% of transactions, depending on the financial product. The financial industry is the most targeted for synthetic identity fraud, with significant impacts on cryptocurrency, lending, and traditional banking sectors. Fraudsters are also using synthetic identities to impersonate businesses, combining real or fabricated details to create non-existent entities or hijack dormant companies. Cybercriminals are employing long-con tactics, building positive credit histories over time to extract higher value from synthetic identities. Credit bureaus are enhancing detection methods by analyzing relationships and behaviors to identify fraudulent identities.

Timeline

  1. 19.09.2025 17:18 1 articles · 10d ago

    Financial Risk from Synthetic Identity Fraud Rises to $3.3 Billion in 2024

    The total financial risk for lenders in the United States due to synthetic identity fraud increased to $3.3 billion in 2024, up from $1.9 billion in 2020. The automotive lending sector is a primary target, with fraudsters using sophisticated tactics to create convincing synthetic identities. Credit bureaus are enhancing detection methods by analyzing detailed data and relationships to identify fraudulent activities. The financial industry, including cryptocurrency, lending, and traditional banking, is heavily impacted by this type of fraud.

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