[et_pb_section fb_built=”1″ _builder_version=”4.27.4″ _module_preset=”default” custom_padding=”||65px|||” global_colors_info=”{}”][et_pb_row _builder_version=”4.27.4″ _module_preset=”default” locked=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”https:\/\/nationalcybersecuritysociety.org\/wp-content\/uploads\/2026\/02\/NCSS-3397-Bulletin-Header-Footer-Header-Graphic-1600×350-Compressed.png” title_text=”NCSS-3397-Bulletin-Header-Footer-Header Graphic 1600×350-Compressed” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.27.6″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n
Published: March 20, 2026<\/em><\/p>\n <\/em><\/p>\n Our bulletin Cyber Threat Watch<\/em><\/strong> has been created to help small businesses stay up to date on the latest threats, news, and events affecting their business. The content has been curated to make cybersecurity easy and accessible for both technical and nontechnical readers.<\/p>\n [\/et_pb_text][et_pb_heading title=”Featured Cyber Threat \u2014 Synthetic Identity Fraud” _builder_version=”4.27.6″ _module_preset=”default” title_level=”h2″ title_font=”|600|||||||” title_text_color=”#00688E” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″][\/et_pb_heading][et_pb_image src=”https:\/\/nationalcybersecuritysociety.org\/wp-content\/uploads\/2026\/04\/ncss-march-2026-real-fake.jpg” title_text=”ncss-march-2026-real-fake” _builder_version=”4.27.6″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][et_pb_text module_class=”ncss-table” _builder_version=”4.27.6″ _module_preset=”default” header_3_text_color=”#00688E” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″ custom_margin=”||2px|||”]<\/p>\n In last month\u2019s bulletin<\/a>, we discussed business identity risk and how attackers misuse legitimate business information to impersonate trusted organizations. However, identity-related threats don\u2019t always involve impersonating an existing identity. In some cases, attackers create entirely new identities that appear legitimate but don\u2019t correspond to any real entity.<\/span><\/p>\n This scheme, known as synthetic identity fraud, is expanding as more services rely on online account creation and automated identity verification. As a result, synthetic identities can pass basic checks and remain undetected for long periods.<\/span><\/p>\n \u00a0<\/span>A synthetic identity is a fabricated identity built from a mix of real and fake information. For example, legitimate information may be combined with other details\u2014such as another real or fake name, address, email address, or banking information\u2014to form a new identity that appears credible<\/a>.<\/span><\/p>\n Unlike identity theft, which involves misusing an existing identity belonging to a person, business, or system, synthetic identity fraud creates a new, artificial identity that isn\u2019t tied to any real entity. Because certain elements are genuine, the resulting identity may still appear legitimate\u2014some of the real information used to construct these identities may come from publicly available sources, such as professional networking websites, official company websites, or other online records. Therefore, when identity verification relies primarily on matching existing information, the fraud may be difficult to detect.<\/span><\/p>\n Synthetic identities are commonly used to open accounts and obtain services that require identity verification. Attackers may maintain normal activity within the system to build trust and credibility for months or years until those accounts are used to commit fraud<\/a>. This type of fraud can remain undetected for the following reasons:<\/span><\/p>\n <\/span><\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/nationalcybersecuritysociety.org\/wp-content\/uploads\/2026\/04\/ncss-march-2026-cyber.jpg” title_text=”ncss-march-2026-cyber” _builder_version=”4.27.6″ _module_preset=”default” custom_margin=”||||false|false” hover_enabled=”0″ global_colors_info=”{}” min_height=”450.3px” sticky_enabled=”0″][\/et_pb_image][et_pb_text _builder_version=”4.27.6″ _module_preset=”default” header_3_text_color=”#00688E” hover_enabled=”0″ custom_css_free_form=”ol {|| list-style: none !important; || counter-reset: item; ||}||||ol li {|| counter-increment: item; || position: relative; || padding-left: 2em; \/* Adjust as needed for spacing *\/||}||||ol li::before {|| content: counter(item) %22.%22; || font-weight: bold; || position: absolute;|| left: 0; || width: 1.5em; || text-align: right;||}” global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n Many small businesses rely on digital services for payments, vendor onboarding, financing, e\u2011commerce, and customer accounts. Given the nature of synthetic identity, the following practical steps can help reduce potential fraud risk.<\/span><\/p>\n Synthetic identity fraud is an identity-based threat, in which attackers create credible-looking identities rather than impersonating an existing one. As identity verification becomes more automated and AI makes fabrication easier, small businesses should strengthen verification processes, monitor account activity over time, and tighten authentication and change controls to reduce the fraud risk.<\/p>\n The NCSS encourages businesses to adopt comprehensive security practices and stay informed about evolving threats. We recommend you consider becoming an NCSS member to access a wide range of our services. For more information, visit our Small Business page<\/a><\/span>.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.27.4″ _module_preset=”default” custom_margin=”|auto|-44px|auto||” custom_padding=”71px||0px|||” locked=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_divider _builder_version=”4.27.4″ _module_preset=”default” custom_margin=”||-2px|||” locked=”off” global_colors_info=”{}”][\/et_pb_divider][et_pb_text _builder_version=”4.27.6″ _module_preset=”default” header_2_font=”|600|||||||” header_2_text_color=”#00688E” custom_margin=”||2px|||” custom_padding=”||0px|||” global_colors_info=”{}”]<\/p>\n https:\/\/www.claconnect.com\/en\/resources\/articles\/26\/synthetic-identity-fraud<\/a><\/p>\n https:\/\/www.equifax.com\/business\/blog\/-\/insight\/article\/synthetic-identity-fraud-the-unseen-threat-and-its-cost-to-businesses\/<\/a><\/p>\n https:\/\/www.bankinfosecurity.com\/ai-tools-synthetic-ids-are-fracturing-kyc-programs-a-30401<\/a><\/p>\n https:\/\/www.acams.org\/sites\/default\/files\/2026-02\/ACA1750_ACAMS%20Synthetic%20Identity%20Infographic_A4%20v2b.pdf<\/a><\/p>\n https:\/\/www.finra.org\/sites\/default\/files\/2025-12\/2026-annual-regulatory-oversight-report.pdf<\/a><\/p>\n https:\/\/venturebeat.com\/security\/ciso-inference-security-platforms-11-runtime-attacks-2026<\/a><\/p>\n https:\/\/www.securityweek.com\/cyber-risk-trends-for-2026-building-resilience-not-just-defenses\/<\/a><\/p>\n https:\/\/liminal.co\/articles\/2026-predictions-whats-next-fraud-identity\/<\/a><\/p>\nWhat Is Synthetic Identity?<\/h3>\n
How the Fraud Scheme Works<\/h3>\n
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What to Do for Your Business<\/h3>\n
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<\/span><\/strong>– Use multiple verification methods rather than relying on a single data match
<\/span>– Review identity profiles for repeated identifiers such as emails, phone numbers, addresses, or bank accounts
<\/span>– Escalate accounts for manual review when information appears inconsistent or the same identifiers are reused<\/span><\/li>\n
<\/span><\/strong>– Watch newly created accounts for unusual behavior or sudden changes in activity
<\/span>– Flag accounts that remain inactive for long periods and later initiate large transactions
<\/span>– Look for multiple accounts connected to the same identifiers or devices<\/span><\/li>\n
<\/span><\/strong>– Require multi-factor authentication (MFA)<\/a> for email, banking portals, accounting systems, administrative accounts, and remote access
<\/span>– Verify any changes to sensitive information, such as payment details or password resets, through an additional trusted channel
<\/span>– Limit who can approve new vendors or update payout instructions and require a second approver for those changes<\/span><\/li>\n<\/ol>\nConclusion<\/h3>\n
References<\/span><\/strong><\/h2>\n