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Synthetic Account Fraud: A Rising Threat to Consumers
Unmasking the Sophisticated Scam
Identity thieves have found a new way to steal your money: synthetic account fraud. This type of fraud occurs when criminals combine real and fabricated information to create synthetic identities. These identities are then used to apply for credit cards, loans, and other financial products.
The Alarming Rise
The Federal Trade Commission (FTC) recently reported that consumers lost over $10 billion to fraud in 2023. This is the first time losses have exceeded $10 billion in a single year. A significant portion of these losses can be attributed to synthetic account fraud.
How It Works
Synthetic account fraud typically involves the following steps:
- The fraudster collects personal information from victims, such as their name, address, and Social Security number.
- They create a synthetic identity by combining real information with fabricated details, such as a fake birthdate or address.
- The synthetic identity is then used to apply for credit cards and other financial products.
- Once the fraudster has access to the accounts, they can use them to make purchases, withdraw funds, or commit other fraudulent activities.
Protecting Yourself
There are several things you can do to protect yourself from synthetic account fraud:
- Be mindful of who you share your personal information with.
- Monitor your credit reports regularly for unauthorized activity.
- Shred any documents that contain your personal information before discarding them.
- Use strong passwords and change them regularly.
- Be cautious of emails or phone calls from unknown sources asking for your personal information.
Conclusion
Synthetic account fraud is a serious threat to consumers. By understanding how it works and taking steps to protect yourself, you can help reduce your risk of becoming a victim.
For more information on synthetic account fraud, visit the following resources: