While you have probably heard of the term identity theft, are you aware of what exactly it is? Identity theft is the criminal act of using someone's personal or financial information with the aim of monetary gain or committing fraud. It is to steal the information and use it to impersonate the person for unauthorized activities. Different types of identity theft leave the victim with damaged credit, finances, reputation, as well as emptied bank accounts.
We are living in an era where technology is growing at a rapid pace. This constant evolution in technology results in more opportunities for fraudsters to acquire access to someone's personal information for their own advantage. They have become smart enough to develop sophisticated, clever, and unpredictable means of stealing sensitive information. However, by being proactive, one can save themselves from becoming a victim and prevent the damage. When it comes to protection, the first step is always to educate yourself about identity theft. A little knowledge can go a long way in stopping cybercriminals in their fraudulent trade, especially when they devise new schemes daily. We have compiled a list of different types of identity theft to watch out for. Understanding these types will help you or your loved ones stay one step ahead of hackers.
6 Types Of Identity Theft You Must Be Aware Of
1. Financial Identity Theft
Financial identity theft is one of the most common types that entails using someone's personal information to gain access to their financial accounts. In such fraud, the theft is done either by taking over the existing account or by creating a new account in the victim's name. Some of the other commons methods that are used for the crime are:
- Stealing the credit/ debit card or its information from the online platform
- Hacking the bank account and withdrawing funds from it
- Through data breaches or phishing
While it might lead to bankruptcy, there are still ways by which you can protect yourself from such crimes. This includes keeping a check on your bank accounts, credit card history, loans issued on your names, bills, insurance, etc. If you come across any suspicious activity or unexplained charges, you must get in touch with the authorities.
2. Medical Identity Theft
Now we will discuss another common form of crime – medical identity theft. The victim’s information is being used to get free medical services, treatments, and drugs. This identity theft leads to multiple incorrect entries in the medical record of the victim without their knowledge. It is a complicated crime that is not easy to resolve. The motive of the fraudsters behind this theft is to:
- Claim medical insurance
- Get a medical prescription for drugs
- Purchasing costly medical equipment
- Accessing healthcare services like surgeries, diagnostic tests, and checkups
To prevent this type of identity theft, you must carefully read all your medical documents, bills, and statements. Along with this, you must also review all your claims and contact the insurance company in case of any unfamiliar charges. Also, in case you are disposing of your documents, make sure you shred them properly.
3. Child Identity Theft
Compared to other types of identity theft, this is very difficult to spot. Child identity theft involves getting access to a child’s information or their Social Security Number with a motive to commit financial fraud. Criminals usually go for this theft because a child is not aware of such details, and hence, such scams may go unnoticed for a long time. Some of the common activities included in child identity theft are:
- Opening a new bank account
- Applying for a driving license
- Getting the government benefits
- Finding employment
- Obtaining loans on a child's name
- Avoiding outstanding arrest warrants, etc.
To prevent your child or family from being a part of this theft, you should review your child's credit report with credit bureaus like Experian, TransUnion, and Equifax.
4. Synthetic Identity Theft
Synthetic identity theft is one of the fastest-growing crimes in the United States. In this, the perpetrator tries to create fake identities with the help of the victim’s real information. Here, the details of the victims are completely or partially fabricated because it combines data from different sources. The commonly collected information are birthdates, addresses, and Social Security numbers. This is then used for:
- Opening fake bank accounts
- Taking loans and credit cards
- Availing expensive services
- Making fraudulent purchases
- Committing financial crimes
For preventing such type of identity theft, you must keep an eye on your mails and credit reports. You can also place a security freeze or look for identity monitoring services. While these are some ways to minimize the risk, such thefts are difficult to identify as they involve mixed records of fictitious identities.
5. Criminal Identity Theft
This is the theft where someone commits the crime but gives untrue identifying information to the police. The motive of the criminal is to safeguard themselves from being arrested, getting summons, and preventing the discovery of a warrant in the real name. Among all the types, this is the most damaging kind as it leads to criminal charges in the name of the victim. Also, such kinds of thefts are quite challenging to detect. The victim will not be aware of the theft until the consequences become evident like:
- Receiving court summons
- Issuing of the background check
- Getting a bench warrant from a judge for the arrest
- Finding an unpaid speeding ticket
There are not many ways by which you can protect yourself from such thefts. All you can do is safeguard your personal ID from getting lost or stolen. Other than that, you can also limit the amount of information you share online.
6. Tax-Related Identity Theft
The last identity theft we are going to discuss is tax-related. Such exploitation occurs when a criminal tries to file a tax return with the stolen information and claims a fraudulent return. This crime is usually done with the help of the Social Security Number of the victim. The motive behind such a crime is to steal the tax refund. Here are some of the signs that will help you catch tax-related identity theft.
- You won’t be able to file your tax return
- Getting an IRS notice for an online account
- You get an Employee Identification Number without applying
- Getting a notification about a suspicious return
Suppose you want to protect yourself and your business from being victims of such fraud. In that case, you must be careful with your personal information and get an Identity Protection Personal Identification Number. Along with this, you must keep a check on your accounts and watch for any alarming signs.
7. Common Ways To Commit Identity Theft
Knowing different types of identity theft is not enough. You should also be aware of how people commit these frauds and criminal activities. Knowing how thieves get their hands on your personal information will reduce the risk and help you protect yourself from identity theft. Here are some of the common ways to commit identity theft.
- Phishing
- Smishing
- Skimming
- Vishing
- Fake website
- Dumpster diving
- Mail theft
- Pretexting
- Pharming
- Hacking
- Unsafe internet connection
- Data breaches
Final Words:
When we talk about the internet, it is a whole different world that offers a plethora of entertaining and exciting opportunities, from networking on social media to online shopping to sending and receiving money. While it is there to make your life easier, several criminals wait to intrude on your privacy and use your information for committing identity theft. It's not just about the different types of identity theft that result in such crimes; it is innocent people and their lack of knowledge that makes them an easy target. However, by learning about different types of identity thefts, one can detect and respond to them quickly. So, pin this article and share it with your friends and families to educate them and help them enjoy modern technology without any fear.
