A new kind of identity theft that combines stolen personal data with fabricated information is on the rise, and it’s helping more digital thieves ruin Americans’ credit without fear of detection, according to a new white paper from the U.S. Federal Reserve.
Known as “synthetic identity theft,” the tactic is distinct from traditional forms of identity fraud. Instead of stealing a person’s name, Social Security number and opening lines of credit, thieves combine a fake name and other fictional personal data such as a date of birth with a true Social Security number. It’s the fastest-growing type of financial crime in the U.S. thanks mostly to a huge uptick of personal information exposed in data breaches in recent years, according to the paper published Monday.
“With synthetic ID fraud you can run the same playbook over and over again with 10 or 20 identities and they can’t even track you down because it’s not even a real identity,” Geoff Miller, head of global fraud and identity solutions at TransUnion, told CyberScoop in a recent interview. “Over the past six or seven years, they’ve come up with a pretty plan where they can walk away with up to $250,000 without getting caught.”
The U.S. Department of Justice last month unsealed indictments against 11 defendants accused of using synthetic identities to make $3 million in charges that were never repaid. With fake identities, defendants allegedly obtained credit cards that ..
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