Fraud, Reuters, Thomson Reuters discussed on Ruin a Bad Guy's Day Radio - Fraud Prevention Podcast


Your particular business or personal needs. Thank you dash lane everyone. It's been interesting week. I can't believe how much news has been coming out about synthetic identity frauds. Let's talk about what is synthetic identity fraud or synthetic identity theft. And so in the last week or so I've been watching all the news, and there's been so many articles in focus on synthetic identities. And I can tell you right now, I'm working with a couple of large companies as we speak involving big cases of. Credit application fraud and credit card fraud involving the term or what we suspect to be related to synthetic identity fraud. So somebody or a group of people, and what it looks like again, we've talked about this and other podcasts is that we have some sort of inter- international criminal enterprises out there stealing Americans identities in some former fashion and using it to create a synthetic identity. So part of this podcasts were to look at the new article that was just released by the legal executive institute in their part of the Thomson Reuters company, but a newly published white paper synthetic identity a new path for government fraud is a question, Mark. There asked the question, how do you catch a thief who doesn't exist? That's a great question. The paper that was published by Thomson. Reuters examines the growing problem synthetic identity fraud or whatever one's spoofing here. Talking about short that up is S. I F Rosza relatively new form of identity theft. And. Which criminals combine pieces of real data in fake information to create an identity entirely for the sole purpose, obviously to fraud company. So and it's almost impossible to trace. So a few podcasts ago told you guys back in December. I had my identity hacked the information has been slow in coming working with law enforcement. I'm also part of LifeLock's personal Lert system on any suspicious activity with my credit file, and that's how this case got started by being communicated or called by them to alert me about suspicious activity on my social security number on that particular case what it's looking light. It looks like it's a hybrid of synthetic identity. The bad guys who were attempting to obtain credit at a women's clothing store. National clothing store, use my social security number but other fictitious or bogus pieces of information. And that fits exactly into this synthetic identity phenomenon that's going on right? Now, does it fits entirely into what I believe to be the real source of the problem where the synthetic identity belongs to someone that has a social security number that has created or someone that has a social security number that hasn't been registered with the major credit bureau. So that's what true identity theft is we'll get into that more a little bit here in a minute. But unlike traditional identity fraud, where someone actually steals a personal person's identity. This paper explains how SAF perpetrators often begin with just a single piece of legitimate personal data like a social security number, and then they start constructing this file full name as a false identity all circling around this this information, and what happens is that. They can cock this package. It looks very much like the identity of a rural person. Whilst would you do it? No, you're trying to fake out banks and credit institutions and other companies that are trying to conduct business via credit in. So what they try to use that false density. Like, I said. Apply for credit in a lot of banks are seeing that loans are being secured, and then found out to be connected to synthetic idea identity or even full the government and governmental agencies to allow Frossard accept or intercept tax returns in different forms of payment that people receive from the government, so this is a big deal right now. And it's probably gonna get worse going forward until some of the legislation that was enacted late last year will go into effect, and as we all know sometimes government agencies operate at a snail's pace. So I think before those bills are some of the governmental institutions out there really start taking this seriously. We don't see the bag is really take advantage of synthetic identity fraud to its fullest potential until these government agencies really start clamping down on some of their internal processes. So right now, finally, there's a wreck. And you know, we all know there's been a record amount of data breaches across all different parts of the economy, and all that data and all that information that's out there right now is expose all of us all exposed. Our personal information more than ever to all these potential criminals across the entire world. And according to the identity theft resource center there have been about one thousand five hundred seventy nine data breaches in two thousand seventeen alone was exposed almost one hundred seventy nine million personal records, including fourteen point two million credit card numbers in one hundred fifty eight million social security numbers. That's a lot of information in the wrong hands. So many of these records. Now circulate is you guys know, and we speak about this quite often on this podcast, but these records now circulate across the dark web where their soul like almost any commodity. You know, your personal data is a new commodity a new the new currency out there. And it's out there. Available to anyone who's willing to pay for it. And now we're seeing some websites not necessarily on the dark web. If you search hard enough on just the regular internet. Anyone of us can get. Well, I'm not saying you should but you can. Find these web sites that are selling personal identity records in that's credit card numbers social security numbers addresses, and so forth to help create a data file with a credit bureau. So how does synthetic identity fraud work, boy, that's a mouthful in? Its let's let's keep calling it s. I f the acronym buddy white in order to commit s I f Roz begin stealing legitimate social security numbers from people that aren't using the credits, you know, looking at some of this and some of the other articles that's parsley. Correct. So it's people who are really using their credit. No what they mean to say is that those are people have social security numbers who have an established credit when you establish credit. You have to do that through one of the three main credit bureaus in that stars usually with the application of a credit card or loan. And so usually what that means is that though security numbers the bad guys want to steal first to commit synthetic synthetic identity theft or synthetic identity fraud are usually those belonging to children or. People who are just new to this country. So they and they were just issued a social security number so in order to build that synthetic identity fraud will then add fake addresses fake, phone numbers and even crates social media accounts, because I know how the system works, and how lot of different investigators or underwriting and different companies that issue credit surge investigate a credit background. And so that's where everything starts to begin. Then while they're using these synthetic identities these began applying for more and more credit online, and basically, they know they're gonna get turned down because we all know that the legitimate way. No when I was younger, I was so excited to get my first credit card at a major departments rows decline. I was too young. I didn't have established credit or payment, you know, with any apartment complex or car dealerships. So I had no credit. I was turned out quite often till I finally got my first credit card with a much smaller department store, and I think it was only for about five hundred dollars. But. As long as you're paying on time. And you're paying your bills, and you pay it off they'll sometimes he's institutions will raise your credit line in use your credit card, and you make your payments on time. And then you pay it off. And then you you're starting to look a lot better with the credit. Bureaus? Your credit score starts going up. You're more worthy of receiving credit because there's less risk involved with giving credit to someone who has

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