SYNTHETIC IDENTITY FRAUD
Criminals create fake identities and use them for credit scams.
Synthetic identity fraud typically targets financial, insurance, healthcare and government payment systems.
When we think about payment fraud, we usually think of it as hijacking the identities of real payees (people, businesses or other organizations) and using them to trick payors into making payments to accounts that appear to be entities they know.
But the fastest-growing form of financial fraud in the US is synthetic identity fraud based on fictitious Personally Identifiable Information (PII) such as a Social Security Number, a modified version of existing PII or a combination of the two.
This type of fraud is most pervasive as a threat to credit card companies and banks, but criminals also target insurance companies, government agencies and businesses that extend credit. In rare instances, they also target consumers.
- How does Synthetic Identity Fraud work?
- What can you do to prevent it?