Synthetic identities are built through identity theft for use in fraud requiring individually valid identifying details. Identity criminals establish new identities through the combined use of false and actual data, or at times, independently valid information. Criminals utilize this synthetic identity to gain open deposit accounts, credits, driver’s licenses, and even passports.
Normally, identity criminals will often involve the use of an SSN (Social Security Number) and associating it with a name not related to that number. The use of real pieces of identity mixed together in new ways means that each piece of identifying information will pass a validation check on it’s own, which makes it hard to discover. Fraudsters know that synthetic identity theft is a simple-yet-lucrative act that can easily be carried out.
Synthetic Identities Factors
Bank fraud would typically involve identity criminals applying for loans, credit cards, unsecured bank credit lines, and overdrafts —- without any intention of making payment in return. It’s a major issue for today’s banking institutions.
Such problem can be a result of two main factors. The first factor involves first-party fraud being
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