UK, 18 March, 2024 – New insights from Experian today reveal the rise of ‘synthetic fraud’ in the UK.
Analysis of confirmed fraudulent and potentially fraudulent credit applications shows that there was an increase of 60% in false identity cases in 2024 when compared to 2023, with the cases now making up nearly a third (29%) of all identity fraud cases.
Previously, creating new identities to apply for financial products through a combination of different individuals’ personal information – often purchased on the dark web - was a time-consuming process for fraudsters.
Now due to the growth in AI technology, criminals can rapidly fabricate huge volumes of new synthetic identities using both real and fake information to launch fraud attacks on financial service companies. AI can also enable fraudsters to create fake identity documents which are virtually identical to genuine ones, creating even greater difficulty in identifying and preventing fraudulent applications.
To counter the problem of AI-generated fraud, companies are increasingly deploying AI solutions themselves, enabling firms to analyse and identify fraudulent applications at a large scale and quickly.
However, new Experian research surveying more than 500 financial service companies found just a quarter (25%) feel confident in addressing the threat posed by synthetic identity fraud, and just 23% in dealing successfully with AI and deepfake fraud, indicating how important it is for businesses to ensure their fraud prevention systems are fit-for-purpose.
Tristan Prince, Fraud and Financial Crime Director, Experian UK&I, said: “Historically synthetic identity fraud was a difficult process for criminals to undertake, as they would need access to people’s actual personal information, often gleaned from rummaging through bins and trawling public records of births, marriages and deaths.
“Now with the prevalence of compromised personal data on the dark web, and the latest AI technology at their fingertips, the effort to create or steal identity is vastly reduced.
“Criminals are using AI to create images, generate identities, set up email addresses, and write social engineering scripts. This has all made creating a synthetic identity easier for criminals and that is showing in the data.
“Fortunately, AI solutions are at the forefront of the solving the problem too. A multi-layered approach to fraud prevention is critical, with systems which incorporate biometric and behavioural technology helping companies lead the fight against fraud in 2025.”
Experian UK&I is a market leader in fraud prevention technology and has prevented more than £9.5bn in fraudulent applications over the last five years.
ENDS
Statistics taken from Experian’s quarterly Experian Fraud Index report.
Media contact:
Robert Goodman, PR Manager, Corporate & Business, UK&I, Experian
Tel: +44 7989 398 498 / Email: Robert.Goodman@Experian.com
About Experian
Experian is a global data and technology company, powering opportunities for people and businesses around the world. We help to redefine lending practices, uncover and prevent fraud, simplify healthcare, deliver digital marketing solutions, and gain deeper insights into the automotive market, all using our unique combination of data, analytics and software. We also assist millions of people to realise their financial goals and help them to save time and money.
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