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The Impact AI is Having on Stolen and Synthetic Identities: Assessing the Threat to FIs## Growing Fast, Hard to PreventFake identities made with AI technology can include realistic-looking documents, biometrics, activity and credit histories, and other characteristics that seem real to legacy identity fraud solutions and fraud prevention analysts.“At financial institutions, it’s estimated that **95% of synthetic identities are not detected during the onboarding process**.” Thomson Reuters, 2023This kind of identity fraud is a long game played at scale. When batches of these identities get approved as bank and fintech customers, they wait. AI keeps their activities up to date, so they continue to seem real.When the bank or fintech company platform offers these “customers” credit, the criminals behind these identities take it and disappear. That leaves lenders with fraud-related losses—over $15,000 per event according to the FTC—and urgent questions about how many more fake customers are still lurking in their databases.In response, many organizations recalibrate the risk thresholds in their legacy identity and document verification solutions. This creates more friction, more false declines, and a negative overall impact on customer acquisition KPIs—all without solving the problem of stolen and synthetic identity fraud.## Brands Protected by Deduce## Deduce Detects Stolen and Synthetic Identities in Real TimeDeduce offers the only solution for keeping stolen and synthetic identities from signing up as your customers, and for flagging the ones already embedded among your customers.With Deduce’s patented technology combined with the Deduce Identity Graph, your organization can:* Prevent GenAI-created identities from creating new customer accounts.* Identify and flag GenAI-created identities that have already become your customers.* Reduce your medium- to long-term exposure to stolen and synthetic identity fraud.