Some credit card issuers now approve applicants using an Individual Taxpayer Identification Number (ITIN), a passport, or proof of income instead of a Social Security Number (SSN). This change aims to broaden access to credit but alters identity verification methods. Lenders now rely on a combination of personal details rather than a single identifier.
Scammers collect personal information over time through tactics like phishing and spoofing. These seemingly minor details, such as name, address, or date of birth, can be combined to create a convincing profile. This fabricated profile can then pass initial checks, enabling fraudulent accounts to be opened.
Lenders typically verify new credit applications against credit bureau records, which include name, date of birth, and address history. Services like Experian can help build a credit file even without an SSN. If the provided details align with existing records and show consistent activity, lenders may approve the application, focusing on the profile's coherence rather than its origin.
Scammers gather data through phishing and impersonation, gradually accumulating enough pieces to construct a full profile. The FBI reported over 190,000 phishing and spoofing cases in 2025. This collected information mirrors what lenders use for identity verification. Scammers then use this comprehensive profile to apply for credit.
Fraudulent applications are often approved because lenders match the submitted information to existing records without investigating the data's source. Automated systems process applications using credit bureau data. If the details match an existing credit file, the application may be deemed legitimate. The Federal Trade Commission receives over a million identity theft reports annually, with credit card fraud being a common issue.
Discovery of such fraud typically occurs when new activity appears on a credit report. This can include hard inquiries from new applications or new accounts, which may take 30 to 60 days to appear. Sometimes, the first indication is a piece of mail sent to the application address. A falling credit score or an unexpected new account on a report can also signal fraud.
By the time fraudulent activity is noticed, the account is already established, allowing scammers ample time to spend funds or apply for further credit. This delay makes early detection challenging.
Proactive monitoring of credit files is the most effective way to catch fraudulent accounts early. This includes tracking new credit accounts, hard inquiries, authorized user additions, and changes to personal information. While bank alerts can flag activity on existing accounts, they do not cover new credit lines opened at different institutions. Placing a free credit freeze with major bureaus or setting up a fraud alert can add layers of security. Credit monitoring services can track changes across all bureaus, providing timely alerts.