SYNTHETIC IDENTITY FRAUD

THE NEW CURRENCY: IDENTITY 'n today's digital age, identity has become the I new currency.

- KHUSHBU JAIN AND BRIJESH SINGH

Trust is no longer confined to the protection of financial assets, it now extends to the safeguarding of personal identities. As more consumers conduct their lives online, financial institutions are realizing that protecting a customer's identity is just as critical as securing their money.

SYNTHETIC IDENTITY FRAUD

In this increasingly digitized world, fraudsters are constantly finding new ways to exploit vulnerabilities in financial systems. One such method that has gained significant traction is synthetic identity fraud. This form of fraud involves fabricating an identity by combining real personal information with fictional details, creating a new identity that can slip through the cracks of various verification processes. Unlike traditional identity theft, where a criminal steals and uses someone's complete identity, synthetic identity fraud involves piecing together a new persona that isn't directly tied to a real individual. This makes it harder for victims and authorities to detect the fraud, as no single person's identity has been entirely compromised.

HOW SYNTHETIC IDENTITIES ARE CREATED

The process usually begins by obtaining a real government identity card number such as PAN, AADHAAR, driving license etc, often from someone who is unlikely to notice irregularities. This is most commonly done by stealing IDs from the elderly or individuals who are not active or they don't frequently check their credit scores. Counterfeit or manipulated identity documents like driving licenses, voter IDs, or passports may be used to support the synthetic identity.