6 in 10 banks in APAC victimised by fake identities

5-10% of the total credit card applications were found fraudulent.

Six in 10 banks in Asia Pacific are experiencing synthetic identity fraud, a recent survey by FICO revealed.

FICO explained that synthetic identity fraud is carried out by blending elements from multiple individuals to create a new identity.

"As prevention technologies have improved to stop activities such as card skimming, criminals are now stealing identities or constructing 'fake people' to get real credit cards," said Dan McConaghy, president of FICO in Asia Pacific, in a press release.

One in five banks said that 5% to 10% of the credit card applications they received are fraudulent.

"The availability of personal information online via social media platforms and mobile apps has made it easier for culprits to mix fake and real personal information," McConaghy added.

Moreover, four in 10 banks blamed lack of budget as their key obstacle to tackle more fraud. However, four in 10 banks said dealing with credit card application fraud is their key priority this year.

FICO polled 37 executives from financial institutions across the region.