What is synthetic identity fraud? Fake people with real details
By SendPay Business · · 2 min read
Synthetic identity fraud is when criminals create a new, fake person by mixing real details, such as a stolen ID number, with made-up ones like a new name and date of birth. Because there's no single real victim checking their records, it can go unnoticed for a long time.
How it usually happens
- A fraudster combines real and invented details into a new identity.
- They apply for accounts or credit, and early rejections still create a credit record.
- They build a good history with small, repaid amounts over months.
- They borrow or spend as much as possible, then disappear. This is often called a bust-out.
Warning signs
Thin credit files that grow quickly, details that don't match across sources, several applicants sharing one phone number or address, and newly created email addresses and online footprints.
How firms fight it
Strong identity checks, document and selfie matching, checking details against several data sources and watching for shared details across applications all help spot identities that don't belong to a real person.
Where SendPay fits
SendPay platforms give your customers GBP, EUR and USD accounts, transfers and branded Visa cards under your own brand, powered by licensed partners who run the required identity checks.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.