Federal Reserve Publishes White Paper
on Synthetic Identity Payments Fraud
Did you know that some industry experts consider synthetic identity fraud to be the fastest-growing type of financial crime in the United States? Do you know why it’s growing, difficult to detect and an increasing concern to financial institutions and consumers alike?
The answers to these questions are just one click away. Today, the Federal Reserve released its first white paper on the growing problem of synthetic identity fraud in the U.S. payment system. This informative paper is a compilation of insights from Federal Reserve and industry subject matter experts. It’s intended to be a resource for industry professionals on the current state of synthetic identity fraud, including the scope of the issue, causes, contributing factors and its impact on the payments industry. Subsequent installments in our Payments Fraud Insights series will describe potential gaps in detection and mitigation approaches, as well as ideas and best practices to address the issue.
We invite all of you to obtain updates on synthetic identity payments fraud by updating your preferences to include “Payment Identity Management” on your FedPayments Improvement Community profile.
For future opportunities to engage on this important topic, follow us on social media or email us at FedPaymentsImprovement@chi.frb.org.