The global banking sector is bracing for a dramatic surge in fraud losses, driven by the rise of synthetic identity schemes and increasingly sophisticated artificial intelligence (AI) tools. According to a recent report by UK-based consultancy Juniper Research, fraud losses in the financial sector are projected to hit $58.3 billion by 2030, marking a staggering 153% increase from an estimated $23 billion in 2025. The trend highlights a growing vulnerability within financial institutions as criminals leverage technology to bypass traditional verification systems.

Synthetic identity fraud, a particularly insidious form of financial crime, is at the center of this rising threat. Unlike conventional identity theft, which relies on stealing an existing individual’s personal information, synthetic identity fraud involves the creation of entirely new personas. Fraudsters blend real, stolen, and fabricated information-such as partial names, birthdates, and addresses-to construct identities that can pass standard verification checks. These synthetic identities are highly challenging to detect, and their use has been amplified by AI technologies capable of generating convincing and harder-to-trace details.

“The rise of synthetic identity fraud represents a fundamental shift in how criminals target the banking sector,” said a financial security expert. “Traditional anti-fraud systems were not designed to identify completely........

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