New Scam Alert: Synthetic ID Theft

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on print
Share on email

Any bookkeeping, business or tax article contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor can it be used to avoid tax-related penalties. If desired, we would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services.

Even if there are a lot of measures to eliminate identity theft, this crime is still evolving to continuously scam people. Scammers are now modifying their tactics, they are combining information from multiple individuals to invent a false identity, a technique called “synthetic” identity theft.

Here’s what you need to know:

How It Works:

  • Scammers pull together a stolen Social Security or Social Insurance number (often belonging to a minor or someone with no credit history), address of an abandoned property, and a fake name and birth date.
  • Using the gathered information mentioned above, the scammer applies for a credit card. Initially, they will be declined since they don’t have a credit profile, but this creates a record of a “person” that doesn’t actually exist.
  • Next, the scammer adds that “person” to one or more legitimate accounts to eventually build up a credit history until they can qualify for large lines of credit
  • Once they are approved for a high line of credit, they do what is called a “bust-out.” The con artist charges their credit cards to the limit, pays nothing, discards the identity, and disappears.

Why This is A Problem:

  • It is difficult to detect if your Social Security Numbers had been used in synthetic identity theft.
  • Negative credit reports will be tied to your Social Security number, but not your name, phone number, and address which means you won’t receive fraud alerts.
  • The unpaid debts left by the scammer can affect your ability to take out loans or credit.

How to Protect Yourself from Synthetic Identity Theft:

  • Don’t give out your Social Security or Social Insurance number if it isn’t absolutely necessary. When a business, medical office, or individual asks for this information, don’t be afraid to ask them why they need it and how they will protect your personal information.
  • Monitor any mail, phone calls, email, or other communications you receive. Be alert if something arrives out of the blue or doesn’t make sense.
  • Check yours and your child’s credit report for signs of fraud using, but make sure your device and connection are safe to prevent third parties from obtaining sensitive information.

FAS Bookkeeping and Tax Services care about your data privacy! Here’s our reminder to be smart, be vigilant, and be alert to avoid being a victim of these types of crimes.

Share this post NOw

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on print
Share on email

Small Business Financial Services

We help you cut through the clutter and noise and help you focus on a clear path to success. We help you succeed with a reliable bookkeeping, payroll support and income tax reporting.
Learn more

Individual Income Tax Services and IRS Response Assistance

Stressed during tax season? Surprised with a huge tax bill? Receiving an IRS letter? FAS can help make your year-end tax compliance less stressful with professional tax services.
Learn more

US and Canada Cross Border Tax Services

Our experienced staff, combined with our US and Canada locations, allows us to provide the tax support you need, wherever you are, at home or abroad.
Learn more

Running a small business is an extremely challenging task. However with a team like FAS, I do not have to worry about our bookkeeping and tax services.

They are truly great team!
Garage Guys Automotive

Very responsive! FAS bookkeeping service has been an integral part of my consulting business.

I highly recommend FAS to business owners who are looking for a reliable business partner to handle their bookkeeping needs.

Bruce Saxton

I have known Christy for about 5 years. She has assisted several of my clients and me personally.

If you are a business owner, Christy makes an outstanding strategic partner. I highly recommend her.

Gerry Brisson

I started looking for a new bookkeeping and tax service firm as my company was no longer getting the service that we deserve from a bookkeeping firm.

I highly recommend FAS to business owners who are looking for a reliable and professional bookkeeping and tax preparation service firm.

Mark Sargent

 Because of the nature of my business and report requirements from corporate that are time-sensitive.

I can count on Cristy and her team’s eye for detail and reliability to deliver accurate and timely financial information.

Terri Foster

We've been with FAS for years and they are one of the most professional and honest people we've worked with.

I highly recommend Cristy, Dennis and FAS Bookkeeping & Tax Services Firm.

Katie To

Being a small business owner means we’re always constrained by time and resource.

I highly recommend FAS for your bookkeeping and tax preparation needs.

Roy Andrade
FAS, with Cristy & Dennis, has been an important part of our progress as a company and I will not hesitate recommending them to business owners who are looking for a serious business partner for such a sensitive financial matter.
Jorge Vasquez
I have referred Cristy to many of our clients and have always been impressed by her professionalism and dedication to her customers.

If you own a small business and operate in the Houston or Katy area you will benefit from working with Cristy on your financials
Roland Parker
Christy is an awesome bookkeeper and adviser. I highly recommend her for personal tax and business tax.

Not only she help with our taxes, she even organize our entire book keeping for very reasonable price.
Kayla Cory
FAS is the best bookkeeping services I have encountered in my 39 years of self employment. They are hard working, ethical and honest in every aspect of their professional lives.

Both Dennis and Cristy have gone way beyond their normal duties to provide services at the highest level.
Marv Conway