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

[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.