The Dark World of Synthetic Identities: Creating a Credit Profile from Scratch

🔑Synthetic identities are created by combining real and fake information to establish a new identity.

💳These synthetic identities are used to obtain secured credit cards and establish a credit history.

💰Once the credit profile is established, individuals can qualify for loans and credit cards, exploiting vulnerabilities in the credit system.

🕵️Fraudsters employ techniques such as creating fake birth certificates and fabricating credit histories to bypass verification procedures.

📉Synthetic identities pose significant risks to lenders and financial institutions, resulting in billions of dollars in losses each year.

What is a synthetic identity?

—A synthetic identity is created by combining real and fake information to establish a new identity.

How do fraudsters create synthetic identities?

—Fraudsters create synthetic identities by using techniques such as forging birth certificates and fabricating credit histories.

What are the risks associated with synthetic identities?

—Synthetic identities pose significant risks to lenders and financial institutions, leading to substantial financial losses.

Can synthetic identities qualify for loans and credit cards?

—Yes, once a credit profile is established, synthetic identities can qualify for loans and credit cards.

How can financial institutions prevent synthetic identity fraud?

—Financial institutions can implement stricter verification procedures and use advanced fraud detection technologies to mitigate synthetic identity fraud.

00:02Fraudsters use synthetic identities to create credit profiles and bypass traditional credit approval processes.

02:49Techniques like forging birth certificates and fabricating credit histories are used to create synthetic identities.

07:47Synthetic identities can qualify for secured credit cards and establish a credit history.

11:24Once the credit profile is established, synthetic identities can obtain loans and credit cards, exploiting vulnerabilities in the credit system.

12:17Synthetic identities pose significant risks to lenders and financial institutions, resulting in billions of dollars in losses each year.