Synthetic Identity Theft: How Crooks Create a New You

Synthetic identity theft: How crooks create a new you

It's called synthetic identity theft, and it'due south harder to find and protect against than traditional identity theft. It happens when the bad guys combine real personally identifiable information with false data, then open new accounts with that cobbled-together identity.

As frequently happens with regular identity theft, "synthetic identity theft is when your Social Security number is used without your authorization," explained Robert Siciliano, Boston-based identity-theft practiced and spokesperson for BestHomeSecurityCompanys.com. Just in that location's a crucial difference.

"What the [fraudsters] oftentimes exercise," Siciliano said, "to trip up the credit bureaus, to trip you up, to trip upwards the lenders, everybody — is they'll apply a dissimilar proper name, or a variation of your name, something that doesn't point back to you. So the primary identifier is your Social, but everything else is pretty much dissimilar."

More than: All-time Identity-Theft Protection Software

In typical identity theft, a fraudster pretends to be a victim past using that person's real name, Social Security number and other personal information. The criminal doesn't change whatever of that pilfered data.

But in synthetic identity theft, explains Adam Levin, chairman of Scottsdale, Arizona-based identity-protection firm IDT911 and a former managing director of the New Jersey Division of Consumer Affairs, a criminal substantially creates a whole new identity.

This kind of identity thief starts with a real Social Security number, only and then adds simulated credentials, such as a simulated proper name, address, nascency engagement and so on. It'southward a Frankenstein's monster, stitched together from various parts into something that looks approximately like a existent person.

Bad guys and then use these manufactured identities to apply for jobs and build credit niggling by little, for example by obtaining cellphone service or credit cards — small accounts that, properly maintained, can found enough credit to obtain larger loans that won't be paid dorsum.

Since such a criminal only uses some of a consumer's personal information, the fraud often won't evidence upwardly on the legitimate SSN holder's credit report. On the other paw, negative information attached to another file can exist linked to the individual'south file in the credit bureau, negatively affecting his or her credit study and credit score, co-ordinate to the Federal Trade Commission.

"Since this type of ID theft does not affect your principal credit file, it often doesn't hit your credit report, nor will a fraud alert or credit freeze help," the FTC noted. "It takes longer to find out y'all've been victimized, making it harder for you to articulate your proper name. When [the criminals] run up thousands of dollars of debt and disappear, the creditors will eventually back track to yous."

How synthetic identity theft can injure yous

Synthetic identity theft has been around for a while, but it is having more than of an impact than it used to.

"We retrieve constructed identify theft is a fairly large problem," said Stephen Coggeshall, chief analytics and science officer at ID Analytics, an identity-run a risk and fraud solutions provider in San Diego. "Our estimates are that nigh 2 percent of applications for credit cards and cellphone accounts are constructed identity thefts."

If someone uses an individual's Social Security number successfully and defaults on a loan, Coggeshall said, the fraud can result in impairment to that consumer'due south credit rating, even though the name and date of birth attached to the fraud are different.

Siciliano said recent changes in the way Social Security numbers are generated are responsible, in part, for enabling the bad guys to become away with synthetic place theft then hands.

In 2011, the Social Security Administration implemented Social Security number (SSN) randomization as a way to deter fraud — until then, it was fairly easy to estimate an individual's SSN if you knew where and when the number had been issued. Simply the randomization alter also made it harder for anti-fraud detection technology to spot when a previously issued number is linked to a fake identity, Siciliano said.

How to tell if yous're a victim of synthetic identity theft

You might be able discover if you've been a victim of constructed identity theft by watching for the consequences, Coggeshall said.

The credit-reporting bureau Experian recommends that you lot check your annual Social Security statement to ensure that "your reported income figure for the year is in line" with what y'all actually earned, and to be "on the lookout for mail that is sent to your home with someone else's name."

Even so, that may not be enough.

"The only way that I know to finish this as it'due south happening is these identity-theft protection services," Coggeshall said.

Identity-theft protection products, such as TrustedID and LifeLock, monitor an individual'south personal information by searching the Internet for unauthorized uses of his or her Social Security number, credit cards and debit cards — and alert that person if annihilation changes.

"At that place are a few [such products] out there," he said. "What you desire to practise is get these alerts as the effort is occurring."

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Linda Rosencrance is a freelance writer with more than than a dozen years' experience roofing IT. Her piece of work has appeared on many sites, including Computerworld, TechNewsDaily, Tom's Guide, and more. She has likewise worked equally an investigative journalist, and has written and published five true-crime books. She lives and works in Boston.