How I Became My Own Consumer Credit Counseling Service And Bounced Back From My Bad Credit Nightmare (part 17)

Because of these factors and more, the weaknesses that exist in the computer systems of credit bureaus can be exploited by people who are inclined to do so. People who know that these "loopholes" and vulnerabilities exist in the system and take advantage of them to create segregated files - that is, new or fictitious credit histories.

To locate any given credit file, the credit bureau computer system must compare an individual's name and other personal information with data that's already stored in its memory banks. That's the process. If this match-up can't be made, a credit history can't be retrieved.

A guy who wants to create a new credit history is banking on what happens when the computer can't make the match: the computer slips into "no record found" limbo.
Furthermore, this unscrupulous guy is going to do everything in his twisted power to confuse the poor computer and engineer the computer's "no record found" downfall.

See, he's going to set things up so that the computer searches, can't make a match, throws up its hands and says, "Forget it - I quit." When this happens, the guy can step into the void and compile a persona based on the data used in the initial credit check ... (consumer credit counseling, to be continued)