What Is Synthetic Identity Theft?

Synthetic identity theft is a sophisticated form of fraud where criminals combine real and fake identifying information to create a new, false identity. For instance, a fraudster might use a stolen Social Security number (SSN) along with a fictitious name, birthdate, and address to fabricate a synthetic identity. This new identity is then used to commit various types of fraud, including financial, credit, and government benefit fraud.

How Does Synthetic Identity Fraud Happen?

Fraudsters typically start by obtaining a real SSN, often from individuals who are less likely to monitor their credit, such as children or the elderly. They then combine this SSN with other real or fake information to create a synthetic identity. Over time, they build up a credit history for this false identity, making it appear legitimate. Once they have access to significant credit, they “bust out” by borrowing large sums of money and then disappearing.

What Happens if You’re the Victim of Synthetic ID Theft?

The consequences of synthetic identity theft can be severe. Victims may find their credit damaged or discover delinquent balances tied to their credit profiles. In some cases, individuals may be denied government benefits because their SSN was used fraudulently. Children and the elderly are particularly vulnerable, as they may not realize their information has been compromised until much later.

How to Avoid Synthetic ID Theft

Preventing synthetic identity theft involves safeguarding your personal information and being vigilant about potential threats. Here are some practical tips:

• Keep your SSN private: Only share your SSN when absolutely necessary and ask if alternative identification can be used.
• Avoid sharing personal information online: Be cautious about posting details like your full birthdate, maiden name, or old addresses on social media.
• Beware of phishing attempts: Scammers may pose as legitimate organizations to trick you into revealing your SSN or other sensitive information.
• Lock your credit reports: Locking your credit file can prevent fraudsters from opening new accounts in your name. You can unlock it temporarily when you need to apply for credit.

What to Do if You’re the Victim of Synthetic ID Theft

If you suspect that your information has been used to create a synthetic identity, take the following steps:

• Report it to the Federal Trade Commission (FTC): Visit IdentityTheft.gov or call 877-438-4338 to report the theft.
• Contact the credit bureaus: Notify Experian, TransUnion, and Equifax about the unauthorized accounts and place a fraud alert on your credit report.
• Notify financial institutions: Inform your bank, credit card issuers, and insurance companies about the fraud.

The Bottom Line

Synthetic identity theft is a growing threat that can have long-lasting effects on your financial health. The best defense is prevention: protect your personal information and be cautious about sharing it. Regularly monitor your credit for signs of fraud and consider using credit monitoring services to stay alert to any suspicious activity.

At O1ne Mortgage, we understand the importance of protecting your financial well-being. If you have any mortgage service needs or questions, don’t hesitate to call us at 213-732-3074. Our team of experts is here to help you navigate the complexities of the mortgage process and ensure your financial security.