One of the most intriguing and alarming trends in cyber fraud is the rise of synthetic identities. But what exactly are they, and how can we protect ourselves from this modern menace? Let’s dive in and find out.
What Are Synthetic Identities?
Imagine if someone took a little bit of information from various sources—like a child’s Social Security number, a random name, and a fabricated address—and stitched them together to create a new, entirely fake person. That’s a synthetic identity. Unlike traditional identity theft, where a criminal steals someone’s existing identity, synthetic identity fraud involves creating a brand-new identity used to commit fraud. It’s like building Frankenstein’s monster out of digital parts.
Why Are Synthetic Identities on the Rise?
There are a few reasons why synthetic identities have become a popular tool for cybercriminals:
- Ease of Creation: With so much personal information available online, fraudsters can easily gather the pieces needed to create a synthetic identity. Social media profiles, data breaches, and even public records can provide the raw materials.
- Low Risk, High Reward: Synthetic identity fraud is often harder to detect than traditional identity theft. Since the identity is entirely new, there’s no victim to notice the fraud and report it. This gives criminals more time to use the fake identity to open accounts, take out loans, and rack up charges.
- Targeting Vulnerable Groups: Fraudsters often use the Social Security numbers of children or deceased individuals because these numbers are less likely to be in active use and monitored.
The Impact on Consumers
Synthetic identity fraud isn’t just a problem for financial institutions—it’s a growing threat to everyday consumers. Here’s a few ways it can affect you:
- Financial Loss: If a synthetic identity is linked to your SSN, you could be responsible for fraudulent charges and loans. Clearing your name and credit can be a long and stressful process.
- Credit Damage: Synthetic identities can wreak havoc on your credit score. Even if you’re not directly responsible for the charges, the fraudulent activity can make getting loans, credit cards, or even a mortgage harder.
- Emotional Stress: Discovering that your identity has been used fraudulently can be a traumatic experience. The stress of resolving the issue can take a toll on your mental and emotional well-being.
Safeguarding Yourself from Synthetic Identity Fraud
The good news is that there are steps you can take to safeguard yourself from synthetic identity fraud:
- Secure Your Personal Information: Be cautious about sharing personal information online. Use strong, unique passwords for your accounts and enable two-factor authentication whenever possible.
- Take Advantage of Fully Managed Restoration: Fully managed restoration services are critical in dealing with the aftermath of fraud and better safeguarding your identity.
- Stay Informed: Keep up with the latest news and trends in cybersecurity. Knowing what to watch out for can help you stay one step ahead of the fraudsters.
LibertyID Identity Theft Solutions for Individuals, Couples, and Families* provides its subscribers with 360° fully managed identity fraud concierge restoration services. We are experts in resolving all common forms of identity fraud. Our subscribers can also enroll in our Proactive Detection, which monitors and sends alerts when their SSN, Address, Dark Web, criminal record, and credit reports change.
*LibertyID defines an extended family as you, your spouse/partner, your parents and parents-in-law, and your children under the age of 25.