{"id":11862,"date":"2024-01-22T12:00:15","date_gmt":"2024-01-22T11:00:15","guid":{"rendered":"https:\/\/www.panini.com\/?p=11862"},"modified":"2024-02-19T18:10:58","modified_gmt":"2024-02-19T17:10:58","slug":"what-is-synthetic-identity-fraud","status":"publish","type":"post","link":"https:\/\/www.panini.com\/com\/blog\/what-is-synthetic-identity-fraud\/","title":{"rendered":"What is Synthetic Identity Fraud?"},"content":{"rendered":"

In today’s data-driven world, identity theft has become a pervasive threat<\/strong>, and its forms are becoming increasingly sophisticated. Among these evolving threats is\u00a0 a complex and insidious form<\/strong> of identity theft that is rapidly gaining ground, called Synthetic Identity Fraud<\/strong>.\u00a0 So, what is synthetic identity fraud exactly and why should you be aware of it?<\/p>\n

\"what<\/p>\n

What is Synthetic Identity Fraud?<\/strong><\/h2>\n

Synthetic identity fraud, also known as “Frankenstein fraud<\/a>,” involves the creation of a fictitious identity<\/strong> by combining real and fabricated personal information.<\/p>\n

According to a more specific a definition<\/a> provided by the Federal Reserve in April 2021, a synthetic identity is:<\/p>\n

the use of a combination of personally identifiable information (PII) to fabricate a person or entity in order to commit a dishonest act for personal or financial gain<\/em>.<\/p>\n

Synthetic identity fraud is a growing concern for businesses and individuals alike<\/strong>. The Federal Reserve estimates that synthetic identity fraud losses reached a staggering $1.2 billion in 2020<\/a>, and experts predict that this figure will continue to rise <\/strong>in the coming years. The stealth nature of synthetic identity fraud makes it particularly difficult to detect and combat, as it often goes unnoticed for extended periods.<\/p>\n

How are Synthetic Identities created?<\/h3>\n

Fraudsters often utilize stolen Social Security numbers (SSNs) as the foundation for these fabricated identities<\/strong>, layering additional fake details<\/strong> such as names, addresses, and employment histories. This patchwork of real and fabricated data creates a persona<\/strong> that can withstand initial scrutiny and enable criminals to establish credit, open accounts, and commit financial crimes.<\/p>\n

In particular, according to a document<\/a> issued by the FED, generally synthetic identities are created by combining two types of elements:<\/p>\n