Synthetic Identity Fraud

Synthetic identity fraud is the fastest-growing form of financial crime in many markets. Instead of stealing a single real person's identity, criminals blend a real component (often a genuine Social Security number, typically from a child, elderly person, or someone unlikely to check their credit) with fabricated name, date of birth, and address data to create a new, fictional identity.

The fraudster then builds a credit history for this synthetic identity — opening secured cards, making small purchases, repaying on time — before committing 'bust-out fraud': maxing out all available credit and disappearing, leaving no real person to pursue.

Because no single victim loses their existing accounts (the SSN used may not be linked to any active credit file), the fraud can go undetected for years. Parents should monitor their children's credit reports; real SSNs can be victimised even when the holder has never applied for credit.