Synthetic identity fraud

Glossary

Synthetic identity fraud

Synthetic identity fraud uses mixed real and fake data to create false renter identities that can pass screening and increase bad debt risk.

Definition

Synthetic identity fraud is the use of a made-up identity built from a mix of real and fake personal information, such as a real Social Security number paired with a fictitious name, birthdate, or address. In rental housing, the goal is often to create enough of a credit profile to pass screening even though the person described does not actually exist. It is different from traditional identity theft because the identity may not point to one clear victim.

Example

A prospect applies for an apartment using a real Social Security number but a fabricated name and address history. The application appears to have a thin but plausible credit profile, the lease is approved, and the resident later stops paying rent, leaving the property with unpaid rent and legal costs.

Why It Matters?

Synthetic identity fraud can be difficult for leasing teams to catch because some individual data points may look valid even when the overall identity is false. For operations leaders, missed fraud can increase bad debt, eviction costs, safety exposure, and pressure on economic occupancy and NOI. Consistent identity, income, and document verification helps reduce reliance on any single piece of applicant information.

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