Plastic People, Plastic Cards: Synthetic Identities Plague Finance & Lending Sector

Synthetic identities are increasingly used to commit fraud in the finance and lending sector, with researchers warning that firms face mounting losses from new accounts. The total financial risk for lenders in the United States rose to $3.3 billion in 2024, up from $1.9 billion in 2020, driven by fraud concentrated against the automotive sector, according to TransUnion. Synthetic identities account for up to 1% of transactions, depending on the product, such as credit cards or auto loans.

The financial industry is the most-targeted for synthetic identity fraud, with cryptocurrency fraud accounting for nearly 10% of it, and the lending industry taking the No. 2 spot at about 5%. Fraudsters are also taking on the identities of businesses, and long‑play schemes involve nurturing synthetic accounts to build a positive credit history.

Detecting these profiles remains challenging as criminals gather more data and use AI tools, making ongoing monitoring and richer data sources essential in the arms race between defenders and attackers, according to TransUnion’s Brad Daughdrill. September 19, 2025.