Synthetic Identity Fraud
A fraud where criminals create a fictitious identity by combining real and fabricated personal data to open accounts and obtain credit.
Also known as: synthetic ID fraud, synthetic fraud
Main entry: Synthetic identity fraud
Last reviewed: 10 June 2026
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.
Sources
- IdentityTheft.gov — Report and Recover from Identity Theft — Federal Trade Commission
- FTC — Identity Theft — Federal Trade Commission
- IRS — Identity Theft Central — Internal Revenue Service
- CISA — Identity Theft and Personal Cyber Threats — Cybersecurity and Infrastructure Security Agency