Frankenstein ID, the use of fake identities by scammers, has become prevalent over the last 12 to 18 months, with US financial institutions (FIs) reporting losses of $20 billion in 2021 as compared to $6 billion in 2016.
Synthetic Identity Fraud: What Is It?
When a Social Security number is stolen, synthetic identity fraud occurs. Hackers then use it in conjunction with bits of accurate personal data obtained from various sources or entirely false information to build an identity in order to commit theft.
Synthetic identity theft is unknown, thus allowing fraudsters to carry out their crimes undetected. Researchers discovered that two out of every three American adults were extremely unaware of fake identity theft.
What is the Frequency of Child Identity Theft and Fraud?
In contrast to adults, stealing the identities of minors gives hackers a wider window to utilize the credentials since the majority of victims who had their identities taken as children do not become aware of the fraud until they are adults. Social media, personal health information, and school forms pose the greatest threats to data theft involving minors, which is a concern for nearly two-thirds of adults.
SSNs can be found by hackers in different spots, like your email account or the database of your chosen merchant. Even student data is stolen and published on the dark web by ransomware groups. Hackers take SSNs to commit synthetic ID theft. As they are more likely to belong to minors, they favor numbers that were granted within the last 18 years. Children generally wait until they are 18 to apply for loans or credit, giving criminals ten or even fifteen years to cause havoc before anyone takes notice.
A hacker will start seeking credit online if they have a social security number. Users, then, simply build a credit history just by seeking credit. A creditor will eventually grant them a $500 or perhaps $1,000 credit line. A breakout occurs once hackers have access to $10,000 to $15,000 in credit. After a final flurry of charges, the attackers fade.
86 % of parents do not check their kids' credit, so hackers can ruin it for years. Due to this, synthetic identity has severe repercussions that frequently prevent its young victims from beginning their adult lives. The fact that children lack control over their credit or financial information makes them vulnerable as well.
