Equifax has launched Synthetic Identity Risk, an advanced AI-powered fraud detection solution designed to combat the rising threat of synthetic identity fraud in consumer lending and credit ecosystems.
Quick Intel
Equifax advances its fraud prevention offerings with the introduction of Synthetic Identity Risk, a cutting-edge solution that harnesses artificial intelligence and sophisticated machine learning to tackle synthetic identity fraud—one of the most challenging and costly threats facing lenders today.
Synthetic identity fraud involves criminals blending legitimate personal information with fabricated details to create entirely fictitious identities. These synthetic profiles are used to fraudulently secure credit accounts or loans, with payments eventually ceasing after exploitation. Due to their realistic appearance, such identities frequently evade detection for extended periods, resulting in substantial charge-offs and revenue losses for financial institutions. Equifax data indicates that the average charged-off loss per known synthetic identity stands at approximately $13,000.
Built on patent-pending technology, Synthetic Identity Risk evaluates a comprehensive set of signals—including identity elements, credit history, and behavioral patterns—to determine the probability of synthetic activity. The tool functions effectively at the point of account origination to flag potential fraud early or as an ongoing account management resource to uncover concealed risks within existing portfolios. This holistic, data-driven approach empowers organizations to make informed, timely decisions on identity verification and risk management in an increasingly complex fraud landscape.
"Synthetic identity fraud is a rapidly growing threat impacting the consumer lending ecosystem," said Felipe Castillo, Chief Product Officer for U.S. Information Solutions at Equifax. "With Synthetic Identity Risk, Equifax strengthens lenders' fraud defenses, helping them to uncover hidden risks and ultimately shift from reactive loss recovery to proactive prevention. In doing so, they not only reduce their financial losses but they safeguard and build long-term trust with their legitimate customers."
The launch of Synthetic Identity Risk reinforces Equifax's role in delivering innovative, AI-enhanced analytics solutions that help financial institutions mitigate fraud risks, protect revenue, and maintain customer confidence in the competitive technology and fintech environment.
ABOUT EQUIFAX INC.
At Equifax (NYSE: EFX), we believe knowledge drives progress. As a global data, analytics, and technology company, we play an essential role in the global economy by helping financial institutions, companies, employers, and government agencies make critical decisions with greater confidence. Our unique blend of differentiated data, analytics, and cloud technology drives insights to power decisions to move people forward. Headquartered in Atlanta and supported by nearly 15,000 employees worldwide, Equifax operates or has investments in 24 countries in North America, Central and South America, Europe, and the Asia Pacific region.
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