Overview

• Synthetic identities, blending real and fabricated data, are now a dominant tool in online fraud, making it harder to trace perpetrators.
• AI technologies automate attacks, from phishing to creating synthetic identities, leading to a surge in financial losses and fraud frequency.
• 92% of German e-commerce companies report encountering fraudulent customer identities, with damages often exceeding €100,000 per case.
• Banks face rising threats as synthetic identities are used to establish mule accounts for laundering illicit funds without detection.
• Experts warn that the absence of global standards for identity verification hampers cross-border fraud prevention efforts.