Fraud Fighters Recognize Memphis as the City with the Biggest Surge in Synthetic Identity Fraud
We recently conducted a LinkedIn poll to see how well our community of fraud fighters could identify the city with the biggest growth in synthetic identity fraud rates from 2022 to 2023. The options were Detroit, Las Vegas, and Memphis. Here’s how the 39 participants voted:
- Detroit: 31%
- Las Vegas: 26%
- Memphis: 44%
The majority of our knowledgeable audience got it right! Memphis experienced a staggering 127.3% increase in synthetic identity fraud during this period. This highlights just how informed our community is about the shifting landscape of fraud.
Dramatic Increases in Synthetic Identity Fraud
Our 2024 Auto Lending Fraud Trends Report reveals that certain areas of the country have seen dramatic increases in synthetic identity fraud as a rate of total applications being seen from those same cities. Memphis had the highest growth as a rate of applications, with Las Vegas seeing some of the largest volumes of synthetic identities across the country.
Top 10 Cities with the Highest Growth in Synthetic Identity Fraud Rates
Following Memphis, other cities also saw significant percentage increases from 2022 to 2023:
- Charlotte, NC: 85.6% Increase
- Columbus, OH: 73.8% Increase
- Indianapolis, IN: 72.3% Increase
- Kissimmee, FL: 66.6% Increase
- Las Vegas, NV: 62.2% Increase
- Denver, CO: 58.9% Increase
- Detroit, MI: 57.1% Increase
- Hialeah, FL: 54.3% Increase
- Atlanta, GA: 52.2% Increase
Expansion Beyond Traditional Hot Spots
The growth in synthetic identity fraud is now occurring in locations that have not traditionally been known as synthetic identity hot spots. This includes cities such as Memphis, Charlotte, Columbus, and Indianapolis, which demonstrates that fraudsters are starting to spread out from the main areas of Houston, Miami, Chicago, and Los Angeles.
Stay Ahead of the Trends
Lenders and originators can better prepare to identify and combat synthetic identity fraud by staying informed about these trends, ensuring they protect their businesses and customers from this growing threat.
