Next-Generation Fraud Detection Product Uses AI to Detect and Help Clients Prevent Synthetic Identity Fraud, One of the Fastest-Growing Identity Threats
ATLANTA, Jan. 23, 2026 /PRNewswire/ -- Equifax® (NYSE:EFX) announced the launch of Synthetic Identity Risk, a next-generation fraud detection product that leverages AI capabilities to help businesses identify and prevent synthetic identity fraud, a complex and growing challenge that forces lenders to absorb significant financial loss. This new product leverages sophisticated machine learning algorithms to uncover fraud patterns that traditional methods may miss, detecting and flagging potential fraudulent activity before it impacts a company's bottom line.
Synthetic identity fraud occurs when fraudsters couple elements of a real identity and manufactured components to create a new, fictitious identity. These fabricated identities are used to fraudulently open credit accounts or obtain loans, on which the fraudsters eventually stop making payments. Because these fabricated applicants often appear legitimate, synthetic identities can go undetected for long periods of time, leaving lenders exposed to significant charge-offs and revenue loss. According to Equifax data, the average cost or charged-off loss per known synthetic identity is approximately $13,000.1
Leveraging patent-pending technology, Synthetic Identity Risk analyzes identity data, credit history and behavioral signals to assess the likelihood of synthetic identity activity. Synthetic Identity Risk can be used to detect potential fraud at account opening or it can be used as an account management tool to continuously identify hidden portfolio risk. Applying a holistic approach allows enterprises to make informed, real-time decisions about identity verification and fraud prevention.
"Synthetic identity fraud is a rapidly growing threat impacting the consumer lending ecosystem," said Felipe Castillo, Chief Product Officer for U.S. Information Solutions at Equifax. "With Synthetic Identity Risk, Equifax strengthens lenders' fraud defenses, helping them to uncover hidden risks and ultimately shift from reactive loss recovery to proactive prevention. In doing so, they not only reduce their financial losses but they safeguard and build long-term trust with their legitimate customers."
For more information about Synthetic Identity Risk, please visit our website.
1Average cost (or loss being charged off) for tradelines on or after January 1, 2022 reported to Equifax Consumer Credit Files as of December 2025.
ABOUT EQUIFAX INC.
At Equifax (NYSE:EFX), we believe knowledge drives progress. As a global data, analytics, and technology company, we play an essential role in the global economy by helping financial institutions, companies, employers, and government agencies make critical decisions with greater confidence. Our unique blend of differentiated data, analytics, and cloud technology drives insights to power decisions to move people forward. Headquartered in Atlanta and supported by nearly 15,000 employees worldwide, Equifax operates or has investments in 24 countries in North America, Central and South America, Europe, and the Asia Pacific region. For more information, visit Equifax.com.
FOR MORE INFORMATION:
Tiffany Smith for Equifax
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SOURCE Equifax Inc.