Synthetic Identity Fraud

What it means

Synthetic identity fraud builds a person or business that does not really exist by stitching together genuine and fabricated details. A criminal might pair a real, valid ABN with a false name and contact details, or combine a legitimate address with invented ownership information, to create an entity that passes surface level checks. Because part of the record is real, single-field validation often waves it through. A typical Australian example is a “supplier” presenting a genuine ABN that does not actually belong to the people operating the account, then nominating a bank account under names that were never verified against the business.

Why it matters for Australian finance teams

Synthetic identities are designed to survive the checks most teams actually run, which is confirming that an ABN is valid rather than confirming who controls it. A valid ABN alone proves a number is registered, not that the person in front of you is genuinely connected to it. This is why KYB and AML/CTF customer due diligence, overseen by AUSTRAC, look through to the real people behind a business. For finance teams, a synthetic supplier can pass onboarding and then extract payments before the fabrication unravels.

How ezyshield helps

ezyshield checks the links a synthetic identity relies on staying hidden. It confirms the person, the business through ABN and ASIC records, and that the payee genuinely owns the nominated bank account before money moves, and re-verifies on any change, so a real ABN cannot be borrowed to front a fake payee. Every check is recorded in an append-only audit trail. See how it works and ABN verification before payment.