A new kind of Identity fraud has been recently discovered which has created ripples in the U.S Government. This a new kind of fraud which typically uses an existing person’s identity to apply for credit or government benefits.
How do they do it?
Criminals randomly choose a SSN that wasn’t issued prior to 2011, when the [Social Security Administration] changed the rules on how SSNs were issued,By choosing a number from this range, they can have reasonable confidence that there won’t already be a history of another person using that SSN. Many sites on the internet provide guidance on how to do this.
Once the synthetic ID is established via the generated credit profile (or credit file), the criminal again applies for credit, gets credit established, and then applies for multiple credit cards. The criminal in the final “bust out” stage waits until the credit score is high enough to yield a large payout, then charges the maximum on the card, as spelled out in a report from the Government Accountability Office (GAO).
This kind of fraud has given a new lease to terrorists and criminals to infiltrate in the government systems and reap its benefits to fund their major terrorists operations. This kind of fraud has forced the securities agencies to work day and night to find out loops in the current system and also detect if there is anyone helping from inside the government system .
Velix.ID is a solution to this problem and can help the governments all over the world to deal with the problem of Identity fraud. Velix.ID has come up with a platform that enables frictionless Identity Verification and keeps the identity safe of the user.
Velix.ID allows the user to keep its identity safe as the ID is stored within the users device as Velix.ID does not have any central database which stores the Users ID and this in fact makes Velix.Id immune to any kind of data breach or theft.