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The rise of <a href="https://www.socure.com/glossary/synthetic-identity-fraud">synthetic identity fraud</a> has become a <a href="https://www.socure.com/blog/the-surprising-source-of-synthetic-identity-fraud">billion-dollar problem for the U.S. banking system</a>, with fraudsters constantly evolving their tactics across every industry. 
As our digital lives expand across devices, channels, and borders, banks, and businesses face an increasingly complex challenge: how do you spot sophisticated <a href="https://www.socure.com/glossary/synthetic-identity">synthetic identities</a> when they&#8217;re designed to look just like legitimate customers? 
Unfortunately, traditional <a href="https://www.socure.com/blog/machine-learning-vs-rule-based-systems">rules-based systems</a> and third-party fraud solutions fall short in solving the problem.
But <a href="https://www.socure.com/products/sigma-synthetic-fraud">Socure&#8217;s Sigma Synthetic</a> is changing the game, helping organizations stop synthetic identity fraud at the door while welcoming more good users than ever before.
Read on as we share how Sigma Synthetic helps organizations capture identity fraud during onboarding — making way for more good users, and more revenue opportunities.
<h3>Sigma Synthetic Achieves Fraud Capture Performance of 80% at the 3% risk depth 
</h3>
Socure&#8217;s latest <a href="https://www.socure.com/products/sigma-synthetic-fraud">Sigma Synthetic Fraud</a> model brings a significant leap forward in combating synthetic identity fraud, with an impressive fraud capture rate of 80% at the 3% risk depth, and a groundbreaking 59% at the 1% risk depth. This breakthrough allows enterprises of all sizes to effectively stop synthetic identities at the front door without compromising access for legitimate consumers. 
 
For context: In head-to-head testing, Sigma Synthetic Fraud has consistently proved to be 6x more accurate than the top competing synthetic score provider, and 4-6x more accurate than the top credit bureau vendor.
<a href="https://www.socure.com/products/sigma-synthetic-fraud">Sigma Synthetic</a> captures <a href="https://www.socure.com/glossary/identity-fraud">identity fraud</a> in the following use cases: 
<ul>
<li style="font-weight: 400;" aria-level="1">At onboarding</li>
<li style="font-weight: 400;" aria-level="1">During high-risk authentication, such as before large transactions</li>
<li style="font-weight: 400;" aria-level="1">To detect synthetic identities that are already lurking in an existing portfolio. Synthetic identities build themselves up over time instead of striking immediately, leaving organizations at risk of both synthetic <a href="https://www.socure.com/blog/why-auditing-your-portfolio-for-money-mules-is-critical">money mule</a> accounts as well as synthetic identities that are building up their credit across the financial ecosystem to strike big.</li>
</ul>
&nbsp;
<a href="https://www.socure.com/wp-content/uploads/2025/02/Sigma-Synthetic-at-3_-Risk-Depth-Fraud-Capture-Rate-1.svg"><img loading="lazy" decoding="async" class="alignnone size-full wp-image-16747" title="Sigma Synthetic at 3 Risk Depth Fraud Capture Rate (1)" src="https://www.socure.com/wp-content/uploads/2025/02/Sigma-Synthetic-at-3_-Risk-Depth-Fraud-Capture-Rate-1.svg" alt="Sigma Synthetic at 3 Risk Depth Fraud Capture Rate (1)" width="704" height="551" /></a>
At the heart of Sigma Synthetic&#8217;s success is its sophisticated approach to data analysis. The solution leverages third-party and historical data, combined with bespoke models, to uncover the subtle anomalies and behavioral patterns indicative of <a href="https://www.socure.com/glossary/synthetic-identity-fraud-solutions">synthetic identity fraud</a>. 
Sigma Synthetic aligns with the <a href="https://www.bostonfed.org/news-and-events/news/2022/08/synthetic-identity-fraud-is-not-a-victimless-crime-costs-billions-damages-lives.aspx">Federal Reserve&#8217;s definition of synthetic identity fraud</a>, focusing on &#8220;manipulated&#8221; and &#8220;fabricated&#8221; identities. <a href="https://www.socure.com/resources/videos/manipulated-vs-fabricated-synthetic-identity-fraud#:~:text=Manipulated%20synthetic%20identity%20fraud%20uses,no%20real%20elements%20of%20PII.">Manipulated synthetic identity fraud</a> uses real personally identifiable information (PII) elements with slight tweaks to create a new identity. Fabricated synthetic identities are completely new identities with no real elements of PII.
This alignment helps customers determine necessary step-up verification without introducing unnecessary friction to the user experience. Socure has also implemented human-in-the-loop labeling, where expert fraud investigators meticulously cleanse and enrich raw data to ensure the highest level of accuracy.
The latest version of Sigma Synthetic uses <a href="https://www.socure.com/blog/reinforcing-the-fight-against-synthetic-identity-fraud">Social Security number (SSN) metadata analysis</a> to flag inconsistencies between an identity&#8217;s core PII and the issuance of their SSN. By analyzing SSN issue dates and variations in SSN in relation to credit age, this model effectively identifies deviations that indicate potential fraudulent activity.
Simultaneously, <a href="https://www.socure.com/blog/stopping-synthetic-identity-fraud-with-proof-of-life-data-sources">the solution draws from diverse &#8220;proof of life&#8221; data sources</a>, including property records, driver&#8217;s licenses, and educational data, to achieve unprecedented accuracy in verifying thin-file demographics.
This comprehensive approach not only enhances <a href="https://www.socure.com/glossary/identity-fraud-detection-and-prevention-software">fraud detection</a> but also promotes financial inclusion. Organizations can now confidently verify more <a href="https://www.socure.com/blog/ensure-your-organization-can-onboard-gen-z">young</a> and <a href="https://www.socure.com/blog/new-to-country-consumers-represent-trillions-in-economic-value">new-to-country</a> applicants, enabling these often underserved populations to access essential services more easily.
<h3>Rooting Out Synthetic Identity Fraud</h3>
One of the most powerful applications of Sigma Synthetic is in <a href="https://www.socure.com/products/portfolio-scrub">portfolio screening</a>. This process involves a thorough scan of an organization&#8217;s entire account portfolio to uncover hidden risks and fraudulent activities that may have eluded initial onboarding checks. 
The benefits of portfolio screening include detecting dormant fraud threats, identifying compliance vulnerabilities, and consolidating fragmented customer data. By implementing regular portfolio screens, organizations can maintain a unified view of customer identities, optimize their risk management strategies, and ensure ongoing <a href="https://www.socure.com/blog/regulatory-compliance">regulatory compliance</a>.
<h3>Delivering Continuous Value: Immediate Benefits at No Extra Cost</h3>
Socure&#8217;s commitment to continuous innovation means that these performance enhancements are immediately available to all customers at no additional cost. As we continue to push the boundaries of what&#8217;s possible in <a href="https://www.socure.com/glossary/fraud-prevention">fraud detection and prevention</a>, our partners can expect ongoing improvements in their <a href="https://www.socure.com/glossary/identity-verification">identity verification</a> and fraud mitigation efforts. 
In a recent data study, a top retail bank found that leveraging Socure’s <a href="https://www.socure.com/products/sigma-synthetic-fraud">Sigma Synthetic Fraud</a> solution, along with <a href="https://www.socure.com/products/sigma-identity-fraud">Sigma Identity</a>, RiskScores, <a href="https://www.socure.com/products/identity-verification">Verify</a>, and Alert List solutions, over the past calendar year would have resulted in:
<ul>
<li style="font-weight: 400;" aria-level="1">~$27M in annual fraud loss savings </li>
<li style="font-weight: 400;" aria-level="1">An additional $20M in revenue from false positive reduction </li>
</ul>
With Sigma Synthetic, organizations can confidently tackle the challenge of synthetic identity fraud while providing a smooth, near-instant identity verification experience for their users.
Catch up on recent Outperform blogs: <a href="https://www.socure.com/blog/outperform-driving-customer-success-through-continuous-innovation-with-docv">DocV</a>, <a href="https://www.socure.com/blog/outperform-delivering-industry-leading-verification-rates-with-socure-verify">Socure Verify</a>, <a href="https://www.socure.com/blog/outperform-global-watchlist-monitoring-revolutionizes-sanctions-screening">Global Watchlist</a>, and <a href="https://www.socure.com/blog/outperform-fraud-detection-improvements">RiskScores</a>.

Outperform: Socure's Sigma Synthetic Achieves Unprecedented 80% Fraud Capture

Pablo Abreu

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