We recently published a guide to protecting yourself against identity theft for high net worth individuals. In this post we’ll take a closer look at a specific type of fraud – synthetic identity theft. We’ll outline how it works, and explore how you can protect yourself.
Our High Net Worth insurance team is always on hand to discuss how you can best protect your most valuable assets. If you want to discuss your needs, get in touch on 0208 290 9086 or email us at personal@anthonyjones.com.
What is Synthetic Identity Theft?
Synthetic identity theft is also known as synthetic ID fraud. This is one of the fastest growing forms of cybercrime. Unfortunately, it’s also among the hardest to spot, and to fight.
Standard identity theft involves a criminal stealing your identity outright, to open accounts or take out loans in your name, or to gain access to your bank account.
Synthetic identity theft instead involves blending fake information with real information.
Criminals will combine national insurance numbers, names, and addresses in order to create fake identities with fake credit profiles, with which they can eventually apply for credit cards.
Who Is At Risk of Synthetic Identity Theft?
Banks and other financial firms are the biggest victims of synthetic identity theft. This is an emerging threat, but it’s already costing banks billions as they unwittingly give credit cards and other financial products to people who don’t exist.
But synthetic identity theft also harms private individuals. If a cybercriminal uses even a part of your identity as part of their synthetic ID fraud scheme, then it could lead to credit issues in the future, or even legal trouble.
As we mentioned above, the ultimate aim of synthetic identity theft is to build up an artificial credit profile. This means that cybercriminals are most likely to target individuals with little to no credit history.
If you’re a high net worth individual, then you probably already have a substantial credit profile. But if you don’t have many credit accounts, or if you’ve only recently opened your accounts, or if you haven’t used them in years, then you might be at risk of synthetic identity theft.
Criminals may also use data from children as part of their synthetic ID fraud schemes.
How To Protect Yourself Against Synthetic Identity Theft
While synthetic identity theft can be hard to spot, there are actions you can take to help protect yourself:
- Keep tabs on your credit report, to look for signs of any unusual activity.
- Also keep an eye on anything that’s listed in your children’s names, such as savings accounts.
- Use multi-factor authentication, and a password manager, to help protect your online accounts.
- Shred any personal documents containing financial information before you throw them away.
- Be aware of phishing attacks and fraudulent phone calls. Never give out any personal information over the phone, unless it’s as part of a call that you initiated yourself.
- Some firms allow you to lock your credit reports, which can help prevent anyone from attempting to take out credit in your name.
What To Do If You Think You’re A Victim of Synthetic ID Theft
If criminals have used parts of your ID as part of a synthetic ID fraud scheme, then you may start to receive letters, emails, or phone calls relating to accounts opened in your name. Or you may start receiving letters addressed to a different name.
If this happens, contact your bank immediately, and tell them that you may have been a victim of synthetic identity theft. You should also report to Action Fraud, who can advise you on additional ways you can protect yourself.
Be sure to read our full guide to preventing identity theft, for further tips on how you can keep yourself safe.
Are You Covered For Identity Theft?
Steve Blackmore, Director at Anthony Jones says:
“Because cybercriminals use a number of fake details when creating their fraudulent credit profiles, it’s often all but impossible to track down the perpetrators of synthetic ID fraud. But there are many steps you can take to protect yourself.
“At Anthony Jones, we can help you ensure you have all the cover you need as a high net worth individual. Our High Net Worth insurance team is always on hand to discuss how you can best protect your most valuable assets.”
If you want to discuss your needs, get in touch on 0208 290 9086 or email us at personal@anthonyjones.com.
Find out more about our High Net Worth Insurance, how we can design cover to reflect the specific lifestyle you lead and get a quote today.