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What is Frankenstein ID Fraud?

Have you ever heard of a "Frankenstein ID"?

It might sound like something out of a science fiction novel, but it's actually a very real — and rapidly growing — form of financial crime. According to experts, synthetic identity fraud — often nicknamed the “Frankenstein ID” — is currently one of the fastest-growing financial crimes in the United States, costing lenders between $6 billion and $8 billion annually.

So, what exactly is it? Synthetic identity fraud involves creating a fictitious identity by combining real and fake personal information — such as using a legitimate Social Security number with a fabricated name, date of birth, or address. Fraudsters then use this manufactured identity to apply for credit, open bank accounts, or commit other forms of financial fraud, often going undetected for months or even years.

Because synthetic identities don’t belong to one real person, these cases are notoriously difficult to detect and investigate. The damage is widespread — not just for financial institutions, but also for the individuals whose real data is used to construct these fake profiles.

That’s why the term “Frankenstein ID” is so fitting — it’s a patchwork identity stitched together from various sources, brought to life for deceptive purposes.

Key Red Flags to look for?

• A large amount of unsecured debt — fraudsters typically acquire unsecured credit, such as credit cards, which require less validation and documentation than secured credit.

• High number of recent credit inquiries — fraudsters typically submit numerous credit applications until one or more are eventually approved.

• Mismatch between anticipated and actual credit history — fraudsters may have a credit history that is much shorter than expected based on their age, such as a 30-year-old with only months, rather than years, of credit history.

• Recently issued contact information — email addresses or mobile phone numbers registered within the past few months may be indicative of synthetic identity fraud.

(Click here) to learn more about Synthetic Identity Fraud!

In the News:

Hollywood Filmmaker charged with defrauding Netflix of $11million.

Filmmaker Carl Erik Rinsch has been charged with defrauding Netflix out of $11 million intended for his sci-fi TV series Conquest, a project in which Netflix had already invested $44 million.

According to the FBI and the U.S. Attorney’s Office, Rinsch used the additional $11 million for personal gain rather than completing the series. He allegedly spent the money on speculative investments in cryptocurrency and securities, as well as lavish personal expenses. The indictment details extravagant purchases, including luxury hotel stays, millions of dollars in high-end furniture and antiques, expensive watches and designer clothing, and luxury vehicles such as five Rolls-Royces and a Ferrari.

The saga began in 2018, when Netflix agreed to fund White Horse—later renamed Conquest—a sci-fi series directed by Rinsch about an artificial, humanlike species called the "Organic Intelligent." Despite his limited experience—his only major film being the box-office flop 47 Ronin—Netflix granted him rare creative control through a "final cut" deal, according to a 2023 New York Times investigation.

Rinsch was arrested in West Hollywood and indicted by the FBI and the U.S. Attorney’s Office for the Southern District of New York on charges of wire fraud, money laundering, and unlawful monetary transactions. If convicted, he faces the possibility of decades in prison. (Read More)

Fraud Flixs:

Fyre: The Greatest Party That Never Happened on Netflix

This 2019 documentary chronicles the rise and fall of Billy McFarland’s infamous Fyre Festival — a 2017 event marketed as an exclusive, luxury music festival on a private Bahamian island. Promising high-end villas, gourmet meals, and performances by major artists, the festival attracted wealthy millennials and influencers. But upon arrival, attendees were met with disaster: flimsy tents, boxed lunches, and no live music. The event quickly collapsed, sparking viral outrage and lawsuits. McFarland’s scheme ultimately defrauded investors out of $24 million and led to his conviction for wire fraud. (See Trailer)

Fraud Quiz:

Test your Knowledge

What is the primary tactic used in synthetic identity fraud?

1. Stealing a person’s full identity and impersonating them

2. Using only fake information to create a new identity

3. Combining real and fake information to create a new, fictitious identity

4. Hacking into existing bank accounts to withdraw funds

Want the answer? You’ll have to scroll for it!

Fraud Facts:

According to Synectics Solutions, a UK-based provider of advanced fraud prevention and identity verification technologies, … 

The Final Word:

Fraud Quiz Answers

The answer is #3 - Synthetic identity fraud differs from traditional identity theft. Instead of stealing and using one person’s complete identity, fraudsters blend real data (like a valid Social Security number) with fake details (such as a made-up name or birth date) to create a new, seemingly legitimate identity — making it harder to detect.

At MPR Group LLC, our Investigation and Anti-Fraud experts are here to help you spot the red flags before they become costly problems. From proactive risk assessments to discreet internal investigations, we empower your business to stay one step ahead of fraud—because prevention is always better than damage control.

Let us protect what you’ve worked so hard to build.