Synthetic identity fraud represents nearly 30 percent of fraud losses at the account creation event for US eCommerce merchants and over 40 percent of fraud losses at this event for US lenders. These and other key survey findings around synthetic identity fraud are explored from the 2022 True Cost of Fraud Study from LexisNexis.
Synthetic identity fraud is responsible for 28 percent of fraud losses occurring at the purchase transaction event and at the new account creation event for US eCommerce merchants, according to the 2022 True Cost of Fraud Study from LexisNexis. Synthetic identity fraud is an even larger share of fraud losses in Canada, where it represents 31 percent of fraud at new account creation events and 35 percent of fraud at the transaction event for eCommerce merchants.
The study also found that identity-related fraud has become more prevalent at the new account creation stage. Identity-related fraud increased from 23 percent of fraud activity at new account creation in 2021 to 32 percent in 2022 for US eCommerce merchants, and from 20 percent to 33 percent for Canadian eCommerce merchants.
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While these findings come from the eCommerce retail report, LexisNexis published another version of this study with a focus on financial services and lending where the issues around synthetic identities are even more pronounced. For US credit lenders, 41 percent of fraud losses at the new account creation stage are from synthetic identities. While large, these losses are likely to be understated because a meaningful share of organizations are not tracking synthetic identity fraud separately from credit losses. US lending institutions are more likely to accurately attribute losses as 82 percent of these organizations track synthetic identity fraud separately from credit losses, compared to 75 percent of US financial services organizations. Canadian counterparts are less likely to separate synthetic identity fraud losses from credit losses, as just 60 percent of financial services organizations and 73 percent lending organizations claimed to do so.
Many more findings can be found in the full reports for eCommerce and financial services.