Post by Federal Reserve Bank of Boston

Synthetic identity fraud is the Frankenstein of financial fraud because it’s when thieves combine personal information from several real people to create one fake person. Then, they use this synthetic identity to steal. Now, generative AI is acting like an accelerant for synthetic identity fraud. Gen AI is being used by criminals to quickly produce these synthetic identities and make them seem more like real people. It’s made synthetic identity fraud harder to stop. In an interview with Six Hundred Atlantic, Boston Fed payments fraud expert Mike Timoney traces the evolution of synthetic identity fraud and discusses its growing prevalence and costs. He also notes that one of the best tools to stop fraudsters who use generative AI in synthetic identify fraud is … AI. Listen to the episode: https://lnkd.in/erykZDpf