What is Synthetic Identity Fraud?

Synthetic Identity Theft is a type of fraud in which a criminal combines real and fake information to create an entirely new identity. This identity is then used to open fraudulent accounts to make fraudulent purchases. This makes it easier for criminals to steal money from credit card companies and lenders who extend credit based on fake identity. This way, they are not stealing from actual people making it a lot harder to get caught.

Banks are usually the victims of synthetic ID fraud since most of the information these criminals provide is legitimate, such as a real name (but a stolen social security number). After all the purchases are made and they use up all of the credit, it’s the credit card companies who pay the price, since they cannot collect payment from the fake identity who established the account. This is a very tricky situation to handle.

Synthetic identity fraud has become one of the most common types of fraud, yet the most difficult to catch, and causes a major loss to financial institutions. The criminal can even turn around and use real pieces of information to pose as a fraud victim, in order to get their credit line restored, then turn around and use the additional credit to commit further theft.

It is important to pay attention to your credit and request copies of your credit report a few times a year, just to make sure no one is committing fraud under your name. If you think you may be the victim of identity theft, you can request a copy of your credit report once a year free-of-charge from Equifax, Transunion and Experian (three free reports if you request one from each) by going to websites or by clicking here. It is suggested to request one copy at three different times during the year instead of requesting all three at once, so you can keep track all year long.

To ensure your security, Florida Peninsula Insurance Company offers identity theft protection for only $25 per month. To learn more about this, and our other coverage options, please give us a call at (877) 229-2244 or visit our website.

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