AI/ML, Identity

AI to further fuel accelerated synthetic identity fraud growth

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AI growth risk as Good Bots and a Bad Bot and chatbot as a social vulnerability for Robots gone rogue and the danger of robotic or artificial intelligence technology in a 3D illustration style.

Intrusions involving synthetic identity fraud, or the creation of fake identities with real and fake information, were noted by a TransUnion study to account for the largest increase among digital fraud types in the public sector during the past year, reports StateScoop.

Such a threat in the public sector could further exacerbate this year as more threat actors leverage artificial intelligence for fraudulent activities, according to TransUnion Senior Vice President Jeffrey Huth. "I think it will become much easier and faster to create completely realistic-looking, fabricated identities, whether it’s building a financial profile, [or] a digital footprint," Huth said. The report noted that synthetic identity fraud could be combated by public sector organizations through the implementation of omnichannel verification, or the corroboration of identities through multiple approaches. However, Huth cautioned that organizations should balance security with accessibility through a "friction right experience." "...[T]hat is appointing the right level of resistance to prevent or mitigate fraud, but not making it so difficult for normal people to actually get what they need," he added.

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