Synthetic Identity = A REAL SOCIAL SECURITY # + False Personal Info.
How is someone using a Child's Social Security Number?
They create a synthetic identity.
Synthetic ID = Real SSN + Fake Name and Date of Birth
1. An identity thief submits a credit card application.
2. The credit bureau will reject the application because it has no record
of that SSN with that Name and date of birth. However a credit file is created.
3.The identity thief applies for another credit card
Credit bureau will not find any credit history but, it will find the credit file
created with the first application.
They will approve the credit card application for a small amount such as $300-$500 max.
This is the very beginning of how the new Synthetic Identity is created.
ID thief now has a viable SSN
to get a job, build credit for future loans, rent an apartment,etc.
It can now be used over and over again until the child
( the actual owner of the Social Security Number)
first applies for a credit card or student loan themselves.
This is when the fraud is detected.