U.S. Federal Reserve issues guidance on how financial organizations can mitigate payment fraud attempts scammers carry out with the help of synthetic identity accounts. Traditional fraud detection models are not designed to detect synthetic identities and this leads to fraudsters successfully using them as part of their fraud attempts. Synthetic identity payments fraud is reportedly the quickest-growing type of financial crime in the US according to McKinsey research. Financial institutions are also advised to share information across product lines to allow for easier discovery of common tactics.
Source: https://www.bleepingcomputer.com/news/security/federal-reserve-shares-tips-on-mitigating-synthetic-identity-fraud/