Synthetic identity fraud

An identity built from a mix of real and invented data, describing a person who does not exist.

For example, a fraudster might pair a real government ID number with a made-up name and birth date, then use the new identity to apply for credit.

Fabrication of an identity by combining valid attributes, often a real Social Security number (SSN) with an unrelated name and date of birth. An attribute is a piece of identifying information, such as a name, a number, or an address.

A synthetic identity typically goes through a life cycle:

1. The fraudster assembles identity elements, mixing real and invented details.
2. They apply for credit, and the credit bureaus create a file for the new identity.
3. They build a history over time, often with small purchases and on-time payments.
4. They take out as much credit as they can and stop paying, a pattern called a bust-out.

The building blocks can come from several places:

• Real identity numbers, such as an SSN that belongs to someone who is not actively using credit.
• Invented details, such as a made-up name, birth date, address, or phone number.
• Generated media, such as AI-created faces or documents that make the identity look real.

Synthetic identity fraud sits next to terms that are easy to mix up:

• Third-party fraud uses a real person's identity, while a synthetic identity belongs to no single person.
• Bust-out fraud is the extraction stage that often ends a synthetic identity's life.
• Identity theft steals one real person's identity, while synthetic fraud blends pieces from several sources.

For more, see 1 in 3 College Applications Are Fake: How Identity Verification Stops FAFSA Fraud.