Mainstage Session - The Hidden Culprit: Unmasking Fraud in Rising Delinquency Rates

Synthetic fraud is when criminals create fake identities to build credit and eventually default, causing financial losses while appearing legitimate. This form of fraud is particularly difficult to detect because the identities appear legitimate and often mimic the behavior of genuine new-to-credit consumers. Recent analysis shows that fraudsters are leveraging long-term strategies to build credible synthetic identities, gain access to substantial credit, and then default intentionally, causing significant industry losses disguised as bad consumers. In this session we will expose a previously undetected form of fraud - lurking synthetic fraud - now contributing to rising delinquency rates. In this session you will gain groundbreaking insights into how this fraud has infiltrated the new-to-credit segment, often misattributed as the source of delinquency spikes. TransUnion’s analysis reveals that legitimate NTC consumers—such as newcomers and younger Canadians—remain creditworthy, while fraudsters exploit expanded access to credit to mask their intentions. This session is a valuable for fraud strategists, risk managers, and financial leaders looking to stay ahead of evolving threats in a digitally connected world.