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1© iovation. All RightsReserved
BrookeSnelling, Senior Product Marketing Manager at iovation
BrettJohnson,Keynote Speaker and Cybersecurity Consultant
at AnglerPhish Security
Synthetic Identity Fraud:
How Cybercriminals
Complete Their Hack
“The Original Internet Godfather”
--United States Secret Service,
Columbia South Carolina Field Office
© iovation. All RightsReserved 3
Shadowcrew
© iovation. All RightsReserved 4
© iovation. All RightsReserved 5
Cybercrime Communities / Forums
Allow Members to Network for
Maximum Success
© iovation. All RightsReserved 6
Synthetic Fraud
• Fastest Growing Form of Identity Theft
• Over 80% of all New Account Fraud
• Losses Last Year over $50 Billion
• Unknown to Most People
• 20% of all credit card losses
• 5% of all credit card debt
• $15,000 average charge off per instance of synthetic fraud
• $6 Billion in losses for 2016
• Over $50 Billion in losses to date
Synthetic Fraud is the Fastest
Growing Financial Crime on the
Planet
Cybercrime Succeeds Through
a Series of Failures Across a
Variety of Systems
Why Synthetic Fraud
Understanding Weakness
• 2011 and the Social Security Administration
• Credit Bureaus Don’t Know You Exist Until You Tell
Them
• Credit Piggybacking
• Traditional Fraud Models Don’t Flag Synthetic Identities
• Defining Synthetic Fraud
What is Synthetic Fraud?
A combination of fictitious and sometimes real
information (SSN, DOB, etc.) used to create new
identities to perpetrate financial fraud.
Ok…What does that mean?
How Fraudsters Commit
Synthetic Fraud
Step One: Creating the Identity
• buy stolen pii or fabricate SSN
• Stolen: Children, elderly, homeless
• Fabricated: SSN algorithm
• SSN validator
• Add name, dob, address, phone number
• If using elderly or active SSN the “drop” address must be
in a different zipcode
• Phone number should NOT be VOIP
• Address should be residential
Step Two: Creating the Credit
Profile
• Credit bureaus don’t know you exist until you
tell them
• Applying for credit and trimerging to create
the credit report
• Fraudsters are often creative. Think
mortgage refi, auto loans, etc
Step Three: OSINT
• Listyourself.net
• Rewards Cards
• Facebook or other social
media?
Step Four: The Secured Credit Card
• Secured cards which require a minimum deposit
remain prime targets
Step Five: Credit Piggybacking
Step Six: Applying for Credit and Cashing
Out
• Novice Level
• Personal loans, branded cards, auto loans, etc
• Potential Profit $15k Range
• Intermediate
• Opens accounts and makes payments on accounts to increase credit limits
• Potential Profit $40k range
• Advanced
• Mixes real pii with fictitious to apply for business credit
• Potential Profit $150k range
Variations
• Primary Credit Lines
• Creating fictitious businesses
• Using reporting services
• Using the court system (now
dead)
• Layering Identity Profiles
• Using ITINs and other
• Aging the profiles
• Opening a bank account
© iovation. All RightsReserved 21
Synthetic Fraudsters Collaborate for
Maximum Success
Placeholder for pics or vid of physical fake
IDs
A Brief History of Fake IDs Among Cybercrook
Cybercrime Isn't
Rocket Science...
Mostly
Combatting Synthetic
Fraud
30© iovation. All RightsReserved
Q&A
© iovation. All RightsReserved 31
© iovation. All RightsReserved 32
33© iovation. All RightsReserved
Thank You

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Webinar: Synthetic Identity Fraud: How Cybercriminals Complete Their Hack

  • 1. 1© iovation. All RightsReserved BrookeSnelling, Senior Product Marketing Manager at iovation BrettJohnson,Keynote Speaker and Cybersecurity Consultant at AnglerPhish Security Synthetic Identity Fraud: How Cybercriminals Complete Their Hack
  • 2. “The Original Internet Godfather” --United States Secret Service, Columbia South Carolina Field Office
  • 3. © iovation. All RightsReserved 3 Shadowcrew
  • 4. © iovation. All RightsReserved 4
  • 5. © iovation. All RightsReserved 5 Cybercrime Communities / Forums Allow Members to Network for Maximum Success
  • 6. © iovation. All RightsReserved 6 Synthetic Fraud • Fastest Growing Form of Identity Theft • Over 80% of all New Account Fraud • Losses Last Year over $50 Billion • Unknown to Most People
  • 7. • 20% of all credit card losses • 5% of all credit card debt • $15,000 average charge off per instance of synthetic fraud • $6 Billion in losses for 2016 • Over $50 Billion in losses to date
  • 8. Synthetic Fraud is the Fastest Growing Financial Crime on the Planet
  • 9. Cybercrime Succeeds Through a Series of Failures Across a Variety of Systems
  • 10. Why Synthetic Fraud Understanding Weakness • 2011 and the Social Security Administration • Credit Bureaus Don’t Know You Exist Until You Tell Them • Credit Piggybacking • Traditional Fraud Models Don’t Flag Synthetic Identities • Defining Synthetic Fraud
  • 11. What is Synthetic Fraud? A combination of fictitious and sometimes real information (SSN, DOB, etc.) used to create new identities to perpetrate financial fraud.
  • 14. Step One: Creating the Identity • buy stolen pii or fabricate SSN • Stolen: Children, elderly, homeless • Fabricated: SSN algorithm • SSN validator • Add name, dob, address, phone number • If using elderly or active SSN the “drop” address must be in a different zipcode • Phone number should NOT be VOIP • Address should be residential
  • 15. Step Two: Creating the Credit Profile • Credit bureaus don’t know you exist until you tell them • Applying for credit and trimerging to create the credit report • Fraudsters are often creative. Think mortgage refi, auto loans, etc
  • 16. Step Three: OSINT • Listyourself.net • Rewards Cards • Facebook or other social media?
  • 17. Step Four: The Secured Credit Card • Secured cards which require a minimum deposit remain prime targets
  • 18. Step Five: Credit Piggybacking
  • 19. Step Six: Applying for Credit and Cashing Out • Novice Level • Personal loans, branded cards, auto loans, etc • Potential Profit $15k Range • Intermediate • Opens accounts and makes payments on accounts to increase credit limits • Potential Profit $40k range • Advanced • Mixes real pii with fictitious to apply for business credit • Potential Profit $150k range
  • 20. Variations • Primary Credit Lines • Creating fictitious businesses • Using reporting services • Using the court system (now dead) • Layering Identity Profiles • Using ITINs and other • Aging the profiles • Opening a bank account
  • 21. © iovation. All RightsReserved 21 Synthetic Fraudsters Collaborate for Maximum Success
  • 22. Placeholder for pics or vid of physical fake IDs
  • 23.
  • 24.
  • 25.
  • 26.
  • 27. A Brief History of Fake IDs Among Cybercrook
  • 30. 30© iovation. All RightsReserved Q&A
  • 31. © iovation. All RightsReserved 31
  • 32. © iovation. All RightsReserved 32
  • 33. 33© iovation. All RightsReserved Thank You