Thousands of driver's licences with fake names are circulating in Ontario, with many being used in a new type of fraud that’s plaguing the financial industry, growing exponentially and costing Canadians up to a billion dollars a year, experts say.
The Fraud Chronicles's insight:
Two years ago I attended a presentation of Toronto's Detective Constable Mike Kelly and his partner, who have now been investigating synthetic identity fraud for years. At that time they had exposed hundreds of synthetic identities managed (being "cooked" in a very sophisticated way over a period of time) by a single man whose face they knew, but who had disappeared. The tendrils of the investigation were international, and massive.
Some fraudsters are mixing legitimate and phony data to create "synthetic" identities. This kind of fraud doesn't usually affect consumers. The big losers are banks, which get stuck with loan defaults and unpaid credit-card bills.
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