Now we have Synthetic Identity Fraud

[thewayne]

Basically they get a valid SSN and use a name similar to yours, then use a network of corporate business stooges to create a good credit history. Get a bunch of credit cards, have fun! Theoretically you may never know it is happening to you because the not-quite-match on name causes a second credit file to be opened on you.

Interesting methodology. One specific incident is referenced, and they say more is happening.

http://biz.yahoo.com/brn/070516/21861.html?.v=1

http://online.wsj.com/article/SB119362045526074445.html

http://www.schneier.com/blog/archives/2007/11/synthetic_ident.html

Comments

[annaonthemoon.livejournal.com]

Wow, that's crazy. I always thought credit agencies ran a match on SSN and name before issuing credit?

[thewayne.livejournal.com]

According to one of the articles, if the name or address is not an exact match, they start another file. This can be a good or bad thing. Some bill collectors might never see the "real" you when the "false" you goes to collections, others might be better at pulling more detailed info and find you and start harassing you over the false account.

The article warns to stay vigilant on change of address notifications or receiving mail with your name misspelled.

[annaonthemoon.livejournal.com]

My last name ends in -sky. How many times do you think I get something in the mail with -ski?

[thewayne.livejournal.com]

Oh, I'm sure that NEVER happens! (more than once a day) :-)

[annaonthemoon.livejournal.com]

Heck, I can spell my name out and end it with "Y as in YELLOW" and still they spell it with the 'i' on the end.

[silveradept]

Something close, but not quite, and then the company makes the assumption that it's just a typo and comes after you. That's a neat trick of social engineering, that's for sure.

[thewayne.livejournal.com]

Not so much social engineering as exploiting a weakness of the credit reporting industry which is difficult for them to avoid. The guy who seemingly started this ran a credit bureau for a while and recognized the potential exploit.

[silveradept]

Just because people might actually pull this trick themselves to try and get out of bad credit they managed to create in "a previous life". Doesn't take all that long for someone else to do it with harm in mind, and create the bad credit situation.