Synthetic Identity Theft

How synthetic identity fraud works

1. 1.Acquire a real SSN. Often a child's (no credit history), an elderly nursing-home resident's, a recent immigrant's, or a deceased person's.
2. 2.Pair it with invented data. A different name, a new date of birth, a fresh address. The SSN is real; everything else is fabricated.
3. 3.Apply for credit. The first few applications get denied — but each application creates an inquiry and, eventually, a "thin file" at the bureaus.
4. 4.Build the profile. With patience, the synthetic identity can get a secured card, then an unsecured card, then higher limits. Some fraudsters "bust out" after a year of on-time payments.
5. 5. Bust out. Max all credit lines, take cash advances, disappear. The lender writes off the debt — sometimes to collections, sometimes as fraud loss.

Why it affects you

If your SSN is used in a synthetic identity, you may see:

• •"Mixed file" entries — tradelines or addresses that belong to the synthetic identity merged into your real file.
• •Unknown aliases or addresses in your personal-information section.
• •Collection accounts for debts you didn't incur — because the collector traces the SSN back to you.
• •IRS income mismatches — if the synthetic identity was used for employment.

How to detect it

• •Pull all three credit reports and review the personal-information section carefully. Unknown names, aliases, or addresses are red flags.
• •Review your Social Security Earnings Statement at ssa.gov/myaccount.
• •Check the specialty CRAs (ChexSystems, LexisNexis, NCTUE).

Remediation

Dispute any mixed-file entries exactly like identity-theft tradelines — certified mail to each bureau and each furnisher, with your FTC Identity Theft Report, your ID, and the credit-report page showing the entries that are not yours. Emphasize that the tradelines belong to a different personwho is using your SSN.