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Public Knowledge Center > Identity Theft |
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Synthetic Identity Theft
Synthetic Identity Theft is rapidly becoming the most prevalent form of the crime. In this form, thieves have learned how to capitalize on weaknesses in the credit reporting system and engage in systematic manipulation of the system. For example, a thief may use a victim's real name and date of birth, yet provide a fictitious Social Security number. Or, the thief may use a victim's real Social Security with an entirely fictitious name and date birth. In this manner, thieves are able to successfully create multiple identities using various combinations of real and fictitious information.
Whichever method is used, a credit history is built up using the synthetic identity, and available credit is quickly maxed out - leaving the creditor to absorb the fraud losses.
Credit Monitoring Will Not Help to Detect Synthetic Identity Theft
Synthetic Identity Theft activity is far less likely to appear on a consumer's credit report than "True Name" Identity Theft because the identifying information used to open new credit accounts doesn't neatly match one particular consumer. If it does appear, the information is often only linked to the credit file as a sub-file, rather than appearing in or being linked to the report header.
Because of the way in which the credit reporting system works, credit monitoring services generally will not catch instances in which a thief uses a different name, date of birth, or address in conjunction with the consumer's real Social Security number, or vice-versa. Victims do not discover the fraud until collection agencies connect the dots and come calling.
Though businesses are the primary targets and victims of synthetic Identity Theft, the victimized consumer whose information was utilized is still likely to struggle to resolve and sort out the fictitious information from their own, and absolve themselves of any fraudulent debts.
©Copyright 2008 by Michael Barnett. All rights reserved. Unauthorized use, copying, or distribution without permission is prohibited.
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