Privacy Strategy: Synthetic Data
Is it sarcastic to say another day brings another data breach? Sadly, no. It’s the reality we face today. Data breaches used to be rare. Now, they’re common across websites, loyalty apps, healthcare providers, financial institutions, and government agencies. Our real personal information leaks so often that many of us barely react anymore.
Why does this keep happening? We trust companies to protect our data, but securing systems is tough. It involves network setups, operating systems, and millions of lines of code. That’s before tackling basics, like who gets access or how long data is kept. Plus, many of us don’t help ourselves. As NordPass demonstrated in their list of the most common passwords, many are weak and easily guessed. Only about 36% of people used password managers in 2024, according to Security.org. Even fewer use passkeys or turn on TOTP 2FA, because it feels too hard.
Security alone isn’t enough. Let’s dig into the problem and find a smarter way to stay safe.
The Problem: Static Information
When we sign up for services, we often reuse the same details. Think about it. You probably use the same:
- Name
- Email address
- Username
- Password
- Phone number
- Payment info
- Address
- Security question answers
It’s convenient to stick with what you know. But, it’s also a gift to data collectors and thieves. Imagine leaving your keys, wallet, and phone on a table, then walking away. That’s what reusing info is like online.
If this data gets stolen, bad actors can test it on other sites (credential stuffing), trick people by pretending to be you (social engineering), or commit fraud. With AI tools, they can even scan billions of stolen records to target valuable victims, like wealthy people or company insiders. Reusing real info everywhere is risky. There’s a better way.
The Solution: Synthetic Information
What if you could stop reusing real details? Synthetic information (also called alias data) lets you do that. New tools help you create fake details to shield your real ones. Here’s how it works for each piece of info:
- Name: Unless you need ID proof for delivery, use a fake name. Just track what you pick.
- Email Address: Tools, like Proton Pass or Cloaked, make unique email aliases. These forward to your inbox without showing your real email. Some people have over 400 aliases!
- Username: Some sites have unique usernames instead of, or in addition to, an email address. When this option is available, try Bitwarden’s username generator for a unique one per site.
- Password: Every site needs its own strong password. Use 1Password or Bitwarden to make and save them. Bonus: many password managers check if your passwords leak online.
- Phone Number: Stop giving out your real number. Cloaked offers disposable numbers. MySudo gives virtual ones for longer use.
- Payment Info: Create virtual cards with Capital One or Privacy.com. Each service gets its own card, which you can pause or cancel anytime.
- Address: For digital services, like streaming, use a fake address. For deliveries, try Amazon lockers or a UPS Store drop-off.
- Security Questions: These are still around in 2025?! Don’t use real answers. Generate and store random ones in 1Password.
If a breach happens, the stolen alias data is useless. Cancel the fake email or card, and your real info stays hidden. But, sometimes, you can’t use synthetic data.
The Real You: KYC Laws
Certain rules, called Know Your Customer (KYC) laws, demand real info. In the US, these help stop fraud and money laundering. They apply to many industries. Check these out:
| Sector | Why It Matters |
|---|---|
| Banks and Credit Unions | Verify who you are for accounts. |
| Wealth Management | Check clients for investments. |
| Broker-Dealers | Follow FINRA rules for trading accounts. |
| Crypto Platforms | Treat crypto like money for exchanges. |
| Fintech Companies | Needed if they handle payments or loans. |
| Private Lenders | Confirm borrowers for loans. |
Other areas need KYC too:
| Sector | Why It Matters |
|---|---|
| Real Estate and Insurance | Check big transactions. |
| Professional Services | Lawyers or accountants moving money. |
| Casinos | Watch for cash laundering. |
| Precious Metals or Antiques | Stop shady sales. |
What do they ask for? Usually, this:
| Category | What They Want | Examples |
|---|---|---|
| ID Info | Name, birth date, address, ID number | Social Security or passport |
| Proof of ID | Photo ID from the government | License or passport |
| Proof of Address | Something showing where you live | Utility bill or bank statement |
| Extras | Job, income source, or why you’re there | Varies by place |
The Problem With KYC
KYC keeps things legit, but it’s a weak spot. If hackers get this info, they can open fake accounts or run scams. Take the National Public Data breach in August 2024. It spilled 2.9 billion records with names, addresses, and Social Security numbers. A company meant to stop fraud got hit itself.
Banks, governments, and healthcare providers get targeted too. Why? They hold the good stuff. Ransomware locks it up, and the dark web loves it. To lock down your real info, check out Protecting the Real You: Essential Steps to Protect Your Personal Data.
Conclusion
Synthetic info is a game-changer against data thieves. Tools make it simple to use unique details for every account. When you must use real info, secure it tight. Why not try this to protect your privacy and sanity?
Remember, we may not have anything to hide, but we have everything to protect.
