Synthetic identity fraud is a fast-growing and costly type of financial fraud, and its threat is increasing – thanks to generative AI.

Criminals use Gen AI to quickly create synthetic identities and make these fake identities seem more like real people so it’s easier to use them to steal.

Federal Reserve payments fraud expert Mike Timoney discusses what synthetic identity fraud is and how it’s evolved. He says one of the best tools to stop thieves who use generative AI in synthetic identity fraud … is AI.

Timoney is a vice president of secure payments at the Boston Fed. Visit BostonFed.org to learn more about how the  Federal Reserve is tracking the increase in synthetic identity fraud. You can also listen to a discussion with Timoney on why check fraud is rising, even as check usage declines. For more interviews and analysis of the economy in New England and nationwide, visit BostonFed.org/SixHundredAtlantic.aspx. Subscribe to our email list to stay updated on new episodes.