Synthetic Identity Fraud Explained
Synthetic identity fraud combines real details, such as an ID number, with fake ones to create a new identity that builds credit before "busting out". How it works, who is at risk, and how to protect yourself.
Most identity fraud pretends to be a real person. Synthetic identity fraud creates a new one. Criminals take a real piece of information, often an ID or social security number, and combine it with an invented name, date of birth and address. The "person" that results can apply for credit, slowly build a credit history, and then borrow heavily before disappearing.
How it works
- A real identifier is obtained from a breach or theft, often belonging to someone whose credit is rarely checked.
- Fake details are added: a new name, date of birth, email and phone.
- The identity is built up: small accounts, being added as an authorised user, paying bills on time.
- The "bust out": once credit limits are high, the fraudster maxes everything out and vanishes.
Who is most at risk
- Children, whose ID numbers may not be checked for years. See protecting children's identities.
- Older people who rarely apply for credit.
- People new to a country with little credit history.
- People who rarely use credit at all.
Why it is hard to spot: because the name is different, the fraudulent accounts may not appear under your name, and you may only find out when something linked to your ID number causes a problem, such as a tax or benefit letter.
How to protect yourself and your family
- Guard ID numbers, especially children's, and share them only when required.
- Where available, freeze credit for children and adults who do not need new credit. See credit freezes explained.
- Check credit records where your country allows. See checking your credit record.
- Watch for letters linked to your ID number under unfamiliar names.
If you find misuse
Contact the organization involved, report identity theft to your national service, and keep records. See reporting identity theft.
Got a letter linked to your ID under another name? Paste the text into CyberWatch AI Scan for a free check, then contact the organization directly.
For the full process, see how to respond to identity fraud in our complete guide.
Frequently asked questions
What makes synthetic identity fraud different?
Instead of pretending to be you, criminals create a new person using some real details, often an ID number, combined with a fake name and date of birth.
Who is most at risk?
People whose ID numbers are rarely checked, such as children, older people and recent immigrants, because misuse can go unnoticed for years.
How can I tell if my details were used?
It can be hard. Watch for tax, benefit or credit letters linked to your ID number under another name, and check credit records where available.
Sources
- What To Know About Identity Theft, US Federal Trade Commission
- How To Protect Your Child From Identity Theft, US Federal Trade Commission
- Credit Freezes and Fraud Alerts, US Federal Trade Commission
