What is Synthetic Identity Theft?
Synthetic ID theft is fraud which is perpetrated using a completely fabricated identity (as opposed to a stolen one). Synthetic ID theft is widely been regarded as one of the most prevalent forms of identity theft. Business firms face lots of problem in detecting synthetic ID theft. Synthetic ID theft makes its presence felt when a fraudster come up with an identity and that identity gets through the conventional data checks that are implemented for fraud. Fraudsters are able to get goods and services in a name that is fake and but reality doesn't really exist.
If you believe the experts, an identity may be fully fabricated or it might use portions of an existing identity pasted together with elements that are more or less fictitious. One important thing to note about fraudsters is that they can use any portions of an identity that they get. A Social Security Number has quite an important role to play in this whole issue. Make sure that any Social Security Number you receive is in a valid range.
Released in batches, you can get identifying numbers at various points all throughout the year. It is worthwhile pointing that the middle two numbers of the Social Security number depict the particular batch of the group as well as the date of issue. Thieves normally formulate fake Social Security numbers through tumbling a valid one.
How to prevent being defrauded via synthetic ID theft
More than consumers, business firms are the most affected by synthetic identity theft. The pivotal factor here is that individuals can experience some damage if portion of their identity is being employed in committing fraud. When you take the identical steps that are being used in the protection from other categories of identity theft, you can easily protect yourself from synthetic ID theft. But that said it is not foolproof.
How to recognize synthetic ID theft
Experts do not share the same opinion when it comes to the impact financial fraud has on the credit file of victim. To illustrate this point better, if a fraudster uses your Social Security number to get a credit of $10,000 but doesn't use your address with it, there is a good chance that transaction may not be there in your credit file. To find about such things, you need to check your credit file on a regular basis. In an ideal scenario, synthetic ID theft shouldn't have an impact on your credit because of the simple reason that credit reporting agencies gather all details and display it in a proper way.