What is synthetic identity fraud?

Synthetic identity fraud refers to the practice of creating a false identity by combining real and fabricated information. In this type of fraud, criminals often take legitimate social security numbers, often belonging to children or individuals who do not actively use their SSNs, and couple them with fictitious names, birth dates, and other personal details to form an entirely new identity. This synthetic identity may then be used to open bank accounts, apply for credit cards, or execute various financial transactions, effectively allowing the fraudster to operate under this fake persona without readily being traced back to their actual identity.

This makes synthetic identity fraud particularly insidious, as it can leave fewer immediate traces compared to traditional identity theft, where a perpetrator steals an existing person's information. Understanding synthetic identity fraud is crucial in the context of cybersecurity, as it poses unique challenges for detection and prevention.