From stolen cards to synthetic identities: rethinking fraud defence
PA
Paula Albu
28 Aug 2026 / 5 Min Read
As instant payments compress fraud decisions into milliseconds, banks are shifting from siloed rule checks toward contextual, identity-driven defence in 2026.
At Payments Unleashed EMEA, fraud and identity emerged as defining concerns across the payments ecosystem. In conversation with David Bernard, CEO UK and Ireland at Equifax, hosted by Mélisande Mual of The Paypers, one point came through clearly: fraud is evolving faster than the payment systems built to stop it.
As real-time payments become the default, institutions must decide whether to authorise or block a transaction in milliseconds, while AI-enabled scams, synthetic identities, and authorised push payment (APP) fraud grow more sophisticated. Bernard's argument: fraud prevention has to become contextual, identity-driven, and real-time, which is what the Equifax and ACI Worldwide partnership is built to deliver at the point of payment.
From stolen cards to synthetic identities
Five to ten years ago, most fraud revolved around stolen plastic cards or compromised card numbers. Today, the centre of gravity has moved to identity itself. Fraudsters build synthetic identities - profiles blending genuine details (a real name, a real ID number) with fabricated gaps, creating personas credible enough to slip past conventional checks. Fraud now operates like an organised industry: early AI adopters trading stolen identities and intelligence on which institutions have weaker defences.
The hardest problem: when the victim presses "send"
Authorised push payment fraud is uniquely difficult, Bernard explains, because the person paying is the legitimate, authenticated account holder - nothing about the access looks wrong. The manipulation happens elsewhere: romance scams, fake purchases, or outright coercion. Detection relies on pattern recognition rather than single red flags - a recently opened recipient account, rapid fund cycling, an unusually large amount, or a concurrent phone call - which only become meaningful in combination, analysed by AI.
Fighting AI with AI, in milliseconds
"We're combating AI with AI," Bernard said. The approach streams session data in real time, comparing it against device ID, user ID, and behavioural signals like typing and swipe patterns, to flag coercion or synthetic identity construction. Friction is introduced selectively - a one-time passcode only when risk indicators appear - before an authorise-or-block decision lands almost instantly. Effective prevention starts upstream of the payment click: login, basket, and payee changes all build a continuous risk profile.
Why the industry has to fight as a network
Bernard is direct about why collaboration is essential: fraudsters sell data and tools to each other, and know which banks have weaker defences and which patterns work best against consumers and small businesses. The industry has to respond in kind: sharing intelligence whenever fraud occurs, across devices, usernames, names and addresses, and card numbers, piecing it into a graph network that builds capability over time, since fraudsters reuse fragments of stolen identity when assembling new synthetic profiles.
Fraud, in Bernard's view, is not a fixed cost institutions can quietly absorb into the P&L. Standing still doesn't hold losses steady - it lets them grow, as fraud tactics keep advancing whether or not defences do.
About David Bernard
David joined Equifax in 2025 and leads the UK and Ireland businesses. He has over 25 years of global leadership experience across B2B technology, data, fintech, edtech, healthtech and digital industries.
He is committed to driving improvements in the customer experience through innovation and AI enablement. David is passionate about the power of AI and technology to improve services for clients and customers.
About Equifax
Equifax (NYSE: EFX) is a global data, analytics, and technology company that plays an essential role in the global economy by helping financial institutions, companies, employers, and government agencies make critical decisions with greater confidence. Their unique blend of differentiated data, analytics, and cloud technology drives insights to power decisions to move people forward. Headquartered in Atlanta and supported by nearly 15,000 employees worldwide, Equifax operates or has investments in 24 countries in North America, Central and South America, Europe, and the Asia Pacific region.
Equifax Ltd is one of the Equifax group companies based in the UK. Equifax Ltd is authorised and regulated by the Financial Conduct Authority. For more information, visit equifax.co.uk and follow the company’s news on LinkedIn.
The Paypers is a global hub for market insights, real-time news, expert interviews, and in-depth analyses and resources across payments, fintech, and the digital economy. We deliver reports, webinars, and commentary on key topics, including regulation, real-time payments, cross-border payments and ecommerce, digital identity, payment innovation and infrastructure, Open Banking, Embedded Finance, crypto, fraud and financial crime prevention, and more – all developed in collaboration with industry experts and leaders.
