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Female fraudsterSt. Petersburg, Fla.-based payments CUSO PSCU offers a real solution to the growing threat of synthetic identity theft, where a cybercriminal combines real and fake information to forge a new ID.

A Federal Reserve white paper released last July, “Synthetic Identity Fraud in the U.S. Payment System,” focused on the severity of this somewhat misunderstood fraud type, a mounting problem for credit unions and other financial institutions. The study cited McKinsey, which described synthetic identity fraud as the fastest-growing type of financial crime in the U.S., and the Auriemma Group, which in 2016 estimated that fake personas accounted for 5% of charged-off accounts and up to 20% of credit losses – or $6 billion. 

Roy Urrico

Roy W. Urrico specializes in articles about financial technology and services for Credit Union Times, as well as ghostwriting, copywriting, and case studies. Also: writer/editor of a semi-annual newsletter for Association for Financial Technology since 1997 and history projects funded by the U.S Interior Department, National Park Service and Warren County (N.Y.).

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