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Synthetic identity theft is an immediate and evolving threat to financial security.
Synthetic identity theft is a form of financial fraud where a criminal combines stolen real personal information, such as a Social Security number (SSN), with fabricated details to create a new, fake identity. Unlike traditional identity theft, which involves stealing someone’s entire identity, synthetic identity theft involves constructing a new persona that appears legitimate.
Criminals use several methods to create synthetic identities:
Identity Compilation: This involves obtaining a real SSN, either by theft or purchase from the dark web, and pairing it with fabricated personal information like a fake name, date of birth, address, and phone number.
Identity Manipulation: Real personal information is slightly altered to create a variation of an existing identity; this makes the new identity appear authentic but distinct from the original.
Identity Fabrication: This involves creating a false identity using bogus information, which may still include a real SSN.
Synthetic identities are typically used to commit financial fraud. Criminals can use these fake identities to:
The complexity of synthetic identities can make them difficult to detect, allowing fraudsters to exploit these identities for years.
Victims of synthetic identity theft often include children, the elderly, and homeless individuals—groups less likely to monitor their credit regularly.
Synthetic identity theft is challenging to detect with traditional fraud monitoring systems. Since synthetic identities blend real and fake information, they often go unnoticed until significant damage has occurred.
A common issue for victims is a fragmented credit file; this happens when credit information from the synthetic identity is mixed with the victim’s credit history, leading to inaccurate credit reports. This can result in denied credit applications, higher interest rates, and other financial hardships.
Identity theft has evolved significantly with technological advancements and the availability of personal information on the internet. Traditional identity theft involves stealing complete identities to commit fraud. Synthetic identity theft represents an evolution where criminals exploit partial information to create new identities. This shift has made detection more challenging and has increased the importance of robust protective measures.
There are several steps you can take to protect yourself from synthetic identity theft:
Be vigilant about phishing scams, which can trick you into providing personal information under false pretenses. Scrutinize unexpected communications from banks, government agencies, or other financial organizations. Verify the sender’s information and avoid clicking on suspicious links.
Regularly review your credit reports for any inaccurate or unfamiliar information. Monitor your credit scores for sudden drops, which could indicate fraud. You can place a fraud alert on your credit reports to notify creditors to verify your identity before opening new accounts. Additionally, consider placing a security freeze on your credit reports to prevent new accounts from being opened in your name.
Synthetic identity theft is a growing threat that can have severe consequences for victims of identity theft. Understanding how synthetic identities are created and used and taking proactive identity theft actions to protect your personal information can reduce the risk of becoming a victim.
If identity thieves have victimized you or a loved one, please contact our talented and compassionate team of attornies. The Holland Law Firm can help.
