The fastest growing type of identity theft in America is synthetic identity theft. This form of identity theft involves criminals combining your Social Security number (SSN) with other names and identities to create a new, fictitious persona. Synthetic identity theft is particularly dangerous because it is often difficult to detect and can result in extensive financial harm.
Synthetic identity theft is on the rise due to several factors. First, the widespread availability of personal information on the internet makes it easier for criminals to gather the necessary details to create synthetic identities. Additionally, the increasing use of SSNs as a unique identifier for various financial and governmental transactions has made them a prime target for identity thieves.
The process of synthetic identity theft typically involves combining a stolen or fake SSN with fabricated personal information, such as names, addresses, and dates of birth. These identities are then used to open fraudulent bank accounts, obtain credit cards, apply for loans, and engage in other financial activities. The criminals behind synthetic identity theft often establish a credit history for these synthetic identities by making small, regular payments to build a positive credit profile.
One of the reasons synthetic identity theft is so difficult to detect is that the victims of this type of theft are often unaware that their SSN has been compromised. Unlike traditional identity theft, where the victim’s personal information is directly used, synthetic identity theft involves using a combination of real and fake details. As a result, victims may not realize they are being targeted until they start receiving bills for accounts they never opened or are denied credit due to a tarnished credit history caused by the synthetic identity.
The consequences of synthetic identity theft can be severe and long-lasting. The financial institutions and businesses targeted by synthetic identity thieves can suffer significant losses, as they may be left with unpaid debts and fraudulent transactions. Moreover, victims of synthetic identity theft may find their credit ruined, making it difficult for them to obtain loans, mortgages, or even employment in the future. Clearing one’s name and resolving the associated financial repercussions can be a lengthy and arduous process.
Preventing synthetic identity theft is challenging, but there are measures individuals can take to minimize their risk. It is important to safeguard your personal information, including your SSN, by not sharing it unnecessarily and being cautious about providing it online. Regularly monitoring your credit reports and financial accounts for any suspicious activity can help detect synthetic identity theft early on. Additionally, freezing your credit can make it more difficult for criminals to open new accounts using your information.
Synthetic identity theft is the fastest growing type of identity theft in America. Criminals combine stolen or fake SSNs with other fabricated personal details to create new identities, making it difficult to detect and resulting in significant financial harm. It is crucial to be vigilant in protecting personal information and regularly monitor credit reports to mitigate the risk of synthetic identity theft.