Synthetic Identity Fraud: How It Works and Who Is at Risk
Unlike ordinary identity theft, synthetic fraud builds a person who never existed, often using a child’s unused Social Security number. It can go unnoticed for years.
By Siddharth ShankarUpdated October 20, 2026Synthetic identity fraud combines real data, such as a Social Security number, with invented details like a name and birth date to create a fake person. Children’s numbers are a favourite target because no one checks their credit. The Federal Reserve’s payments improvement guidance says the harm shows up when the child later applies for a job, a loan or housing. The main protections are a credit freeze for the child at all three bureaus and safe storage of documents.
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When people think of identity theft, they picture a thief using their name. Synthetic identity fraud is different: the criminal builds a new identity out of pieces, and the real person whose number is used may never know.
What it is
According to guidance from the Federal Reserve’s payments improvement effort, synthetic identity fraud combines real and fake information to create a fake person. One common form pairs a child’s Social Security number, which has never been used, with a different name and date of birth.
Why children are targeted
A child’s number is attractive because it is clean and unused, and because few parents check a child’s credit. The fraud can continue for years. The guidance notes that the problem often appears only when the child grows up and applies for something.
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The harm to the real person
The guidance says affected children can find it harder to get jobs, loans and housing, and that the first person to establish credit under a Social Security number is generally treated as its owner. That is why a hijacked number can cause long-lasting problems, and why the actual victim may spend years untangling the record.
Warning signs
- A credit report exists in your child’s name. Children usually have none, so this is a warning sign.
- Pre-approved credit offers or bills addressed to a minor.
- A rejected application for a first job, bank account or student loan for no clear reason.
- A notice from the tax authority or a benefits agency about a child’s number.
How to protect a child
1Freeze the child’s credit
Place a freeze at all three bureaus. A freeze stops new credit being opened with the number. See how to place a credit freeze.
2Store documents securely
Keep Social Security cards, birth certificates and passports in a locked place, not in a wallet or an email inbox.
3Limit sharing
Give a child’s number only when it is truly required, and ask why when a form requests it.
4Act on a breach notice
If a school, clinic or vendor reports a breach, enrol in any free protection offered. See the PowerSchool breach guide.
5Report it
If you find a credit file in a child’s name, report it at IdentityTheft.gov in the US and follow the recovery plan.
How it connects to data breaches
Criminals assemble synthetic identities from numbers and details exposed in breaches. That is one reason a leaked number is worth acting on. See what to do if your Social Security number was leaked and what identity theft is.
Why it can take years to notice
With ordinary identity theft, a victim often sees a bill or a rejected application quickly. With a synthetic identity, the account holder is a made-up name, so no one expects a letter. The real owner of the Social Security number may never receive anything until they apply for credit themselves.
What to check as an adult
Review your credit reports from the three bureaus, and look for accounts, addresses or names you do not recognise. Unfamiliar variations of your name, or addresses you never lived at, can point to a number that has been used by someone else.
What to do if you are already affected
Follow the steps in what to do if your identity is stolen, and keep a written record of every call, letter and reference number.
Sources
- Federal Reserve payments improvement: Protect kids from synthetic identity fraud (PDF) (definition, child SSN pairing, harm, first-to-establish-credit rule, protections)
Frequently asked questions
What is synthetic identity fraud?
It combines real information, such as a Social Security number, with fake details to create a new, fictional person.
Why are children targeted?
Their numbers are unused and few people check a child’s credit, so misuse can go unnoticed for years.
What are the warning signs?
A credit report in a child’s name, offers or bills addressed to a minor, or unexplained rejections of first applications.
How do I protect my child?
Freeze their credit at all three bureaus, store documents securely and limit who gets their number.
Where do I report it?
In the US, report at IdentityTheft.gov and follow the recovery plan.
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