Is My Child a Victim of Synthetic Identity Theft?

• Author | Marlee Sacks
• Date | 11/3/2019 9:15 am

If you thought you only needed to worry about identity theft or identity fraud, unfortunately, you are sadly mistaken. There is yet another type of identity theft that fraudsters have developed, and it is called “synthetic identity theft.” It is the combination of fake information and real data. This means that a thief could use a fake name but a real social security number (SSN) in order to create fake accounts that could potentially not be discovered for years.

How does it work you ask? Well, bear with me while I try to uncomplicate things for you. *Once a thief has assembled a new and unused social security number (usually that of a child’s), they make up a name, birthday and address so that they can apply for a credit card. This application will then be turned down because the person/child associated with that SSN does not have a credit history. However, it does create a record of an individual who does not exist. Then the next step would be to add that individual to one or several legitimate accounts.

Just wait, it gets worse. Synthetic identity thieves seem to find pleasure in the act of plotting out this detrimental money scam. After some time has passed, there will eventually be a credit score and history attached to this fake individual, which makes it easier to qualify for credit. Because this fake identity includes evidence of income through occupation, it can go unnoticed by card issuers. Over years of time the thief may make small charges just to pay them off, which builds a good credit score and results in receiving higher credit limits. Once they decide the credit limits are high enough, they do a “bust-out” – abruptly charging the cards up to their limits, paying absolutely nothing and disposing of the identity. Once your child is old enough to apply for a credit or even a loan, they will be denied and racked with debt up to their ears.

Here are some ways that you, as a parent or guardian, can protect your child’s identity.

• Freeze your child’s credit – So that no stranger can use or access your child’s personal information to set up bogus accounts. You can use Protectmykidsid.com to freeze your child’s account or go to any of the three credit bureaus.

• Minimize exposure – Do not, in any case, offer up your child’s social security number on a form. This is usually not an issue but if it is, you must ask why they need it and what they intend to do with it.

• Continue to communicate and ask questions – Explore, investigate or consider anything that might look suspicious. If you receive a letter or a phone call that doesn’t quite make sense, you need to follow up on that in order to make sure you or your child’s identity has not been compromised.

*Bev O'Shea, USA Today, and Associated Press., “What Is Synthetic Identity Theft?,” NerdWallet, October 16, 2019)