Fed issues ‘synthetic identity fraud’ definition

The Federal Reserve issued a recommended definition of “synthetic identity fraud” after convening an industry group.

Definition: The Fed said synthetic identity fraud is “the use of a combination of personally identifiable information to fabricate a person or entity in order to commit a dishonest act for personal or financial gain.”

Application: The Fed said the recommended definition is designed to improve awareness, detection, and measurement of SIF—the fastest-growing type of financial crime in the United States.

More: In a Main Street Matters post, ICBA Bancard President and CEO Tina Giorgio offers seven tips to help community banks combat the threat of SIF, which is estimated to cost $6 billion annually in credit losses.