In a recent interview with Information Security Media Group, Steve Lenderman, the co-chair of the Industry Working Groups for the International Association of Financial Crimes Investigators, emphasized the shift from synthetic identity fraud targeting consumers to synthetic entity fraud targeting businesses. Lenderman, with over 25 years of experience in the financial crimes sector, outlined the challenges in identifying the right data to combat the prevalence of synthetic identities and the emerging trend of fraudsters shifting their focus to target businesses.

According to Lenderman, the persistence of synthetic IDs as a problem is not due to a lack of data but rather the failure to identify the right data and establish correlations. He stressed that synthetic identities exploit gaps in data aggregation and analysis capabilities, leading banks and businesses to chase inconsequential information, resulting in difficulty connecting the dots to unveil the network of synthetic identities.

Lenderman predicted that in the upcoming years, fraudsters will transition from targeting consumers with synthetic identity fraud to focusing on businesses with synthetic entity fraud. This shift in focus highlights the evolving tactics and methods employed by fraudsters to achieve their objectives.

During the interview, Lenderman discussed the role of machine learning in analyzing patterns, the reasons why fraudsters are not concentrating on smaller banks, and the evolution of fraud methods and tactics. He addressed the need for organizations to adapt to these changing dynamics and emphasized the importance of leveraging data insights and advanced analytical tools to detect and prevent synthetic identity and entity fraud.

Having previously served as the senior vice president of fraud prevention and investigations at Bank Mobile Technology, Lenderman’s insights are based on his extensive experience in combating financial crimes within the banking and financial services industry.

The interview with Lenderman provides a valuable perspective on the challenges posed by synthetic identities, the emergence of synthetic entity fraud, and the evolving landscape of fraud methods. His expertise and recommendations underscore the critical role of advanced data insights and analytics in the ongoing fight against financial fraud.

In conclusion, Lenderman’s interview sheds light on the imperative for organizations to prioritize the identification of the right data and the utilization of advanced analytical techniques to effectively combat synthetic identity and entity fraud. His insights serve as a timely reminder for businesses and financial institutions to remain vigilant and adaptive in the face of evolving fraud tactics and emerging threats.

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