There’s nothing fake about synthetic identity theft

A bank customer recently shared that their identity theft monitoring service alerted them that their Social Security number had been discovered online, linked to an account belonging to someone else under a different name and birth date. The customer looked into the name but couldn’t find any information about the person.

This is an indication of a crime called synthetic identity theft.

Synthetic identity theft is one of the fastest-growing types of fraud in the United States. It occurs when a criminal creates a fictitious person by combining real and fabricated information. For example, they might use a genuine Social Security number (often stolen from a child or senior) and pair it with a false name and birthdate.

Once they’ve created this new identity, the fraudster gradually builds credit by applying for small loans or credit cards. Over time, the fake person establishes a good credit score. Then, the thief executes their final plan by taking out larger loans or maxing out credit cards and disappears, leaving banks with the debt.

This type of fraud is difficult to detect since there is not a real person monitoring the credit report. Victims may not realize it for years, especially in the case of children. Moreover, because the identity is fabricated, it is challenging for law enforcement to track down the perpetrator.

How you can protect yourself:

• Freeze your credit so new accounts cannot be opened without your approval.
• Freeze your child’s credit until they need it. This prevents thieves from using their Social Security number.
• Monitor your credit report for accounts or activity you do not recognize.
• Be careful with your Social Security number. Only provide it when absolutely necessary.
• Consider using identity monitoring services.

Synthetic identity theft harms banks, but it can also hurt real people. Fixing identity theft can take months or years and often involves clearing up credit reports, dealing with creditors and filing reports with government agencies. That is why awareness and prevention are so important.  By staying alert and taking simple steps to protect your personal information, you can reduce the risk not just for yourself, but for your entire family.

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