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WASHINGTON
–
The
Wall
Street
Journal
published
an
article
on
how
synthetic-identity
fraud
has
become
“one
of
the
fastest
growing
forms
of
identity
theft.”
In
an
effort
to
curb
identity
theft,
U.S.
Senator
Scott
introduced
the
bipartisan
Protecting
Children
From
Identity
Theft
Act,
which
will
help
prevent
children’s
identity
being
stolen
by
a
type
of
theft
known
as
“synthetic
ID
fraud.
Original
cosponsors
of
the
bill
include
Senators
Bill
Cassidy
(R-LA),
Claire
McCaskill
(D-MO),
and
Gary
Peters
(D-MI).
The
New
ID
Theft:
Millions
of
Credit
Applicants
Who
Don’t
Exist
Wall
Street
Journal
March
6,
2018
By
Peter
Rudegeair
and
AnnaMaria
Andriotis
From
a
townhouse
near
a
megachurch
in
Atlanta,
Kelvin
Lyles
recruited
about
300
accomplices
to
embark
on
a
crime
spree.
His
group
scammed
ATMs,
internet
retailers
and
credit-card
companies,
grabbing
around
$350,000,
until
late
2015,
when
federal
agents
closed
in.
Mr.
Lyles
was
the
only
one
convicted.
None
of
his
accomplices
existed.
In
a
twist
on
ID
theft,
criminals
are
deploying
figments
of
their
imaginations,
in
what
is
often
called
synthetic-identity
fraud.
It’s
one
of
the
fastest
growing
forms
of
identity
crimes,
the
Justice
Department
says,
and
among
the
hardest
to
combat.
[…]
In
Rock
Hill,
S.C.,
a
50-year-old
man
was
arrested
last
year
after
applying
under
synthetic
identities
for
more
than
750
credit
cards;
he
pleaded
guilty.
Earlier,
a
Southern
California
man
pleaded
guilty
to
conspiracy
to
commit
bank
fraud
using
synthetic
identities,
agreeing
to
forfeit
properties
in
Los
Angeles,
West
Hollywood
and
Santa
Monica
bought
with
the
proceeds.
[…]
The
missing
tool
for
preventing
synthetic
fraud
is
an
instant
way
to
verify
a
Social
Security
number
through
an
agency
process,
says
Brian
Murphy,
senior
director
of
policy
at
the
American
Bankers
Association
trade
group.
“At
this
point,”
he
says,
“it
is
the
number—the
single
identifier—on
which
everything
turns.”
Lenders
tend
to
use
their
own
data
and
fraud-detection
tools
and
review
information
from
credit-reporting
companies.
Those
companies
build
histories
for
people
based
on
information
lenders
provide.
That
can
create
openings
for
fraud
because
of
the
vulnerability
in
the
system.
If
an
applicant
hasn’t
received
credit
before,
a
lender’s
query
to
a
credit-reporting
firm
will
reveal
no
borrowing
history,
and
the
lender
will
likely
reject
the
application.
But
that
very
query
typically
results
in
the
creation
of
a
new
credit
file
for
the
person.
If
the
person
applies
for
more
loans,
that
process
expands
the
credit
file
and
can
give
the
perception
the
applicant
is
real.
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