Types of ID Theft

Types of Identity Theft Featured Image

Discover some of the many types of identity theft and fraud.

Identity Fraud

Identity fraud may occur when someone steals personal information, opens credit card accounts in the victim’s name without permission, and charges merchandise to those accounts. Conversely, identity fraud does not occur when a credit card is simply stolen. Stealing one’s credit card may be consumer fraud, but is not identity fraud. Identity fraud is a synonym of unlawful identity change.

Identity Theft

Identity theft is a form of stealing someone’s identity in which someone pretends to be someone else by assuming that person’s identity, typically in order to access resources or obtain credit and other benefits in that person’s name. Identity theft occurs when someone uses another’s personally identifying information, like their name, identifying number, or credit card number, without their permission, to commit fraud or other crimes.

Identity Cloning and Assumption

In this situation, the identity thief assumes someone else’s identity in order to conceal his or her own true identity. The thief completely and permanently assumes the victim’s identity to begin a new life. Examples might be illegal immigrants, criminals or fugitives, or persons with a poor financial history. Unlike financial identity theft, assumption may continue indefinitely without being detected, particularly if the identity thief is able to obtain false credentials in order to pass various authentication tests in everyday life. The thief can openly live the victim’s life, while the victim suffers the consequences.

Criminal Identity Theft

When a criminal fraudulently misuses a victim’s information when in contact with law enforcement, it is sometimes referred to as “Criminal Identity Theft”. In some cases criminals have previously obtained state-issued identity documents using credentials stolen from others, or have simply presented a fake ID. The end results are often erroneous criminal records for the victim, outstanding arrest warrants, and even temporary imprisonment. In some cases the victim could be fired from their place of employment from not disclosing criminal convictions. It can be difficult for the victim of a criminal identity theft to clear their record. Criminal convictions are usually entered into public records, which can further negatively impact future employment opportunities, security clearances, insurance premiums, and pose an array of other challenges to victims.

Synthetic Identity Theft

Synthetic Identity Theft is rapidly becoming the most prevalent form of the crime. In this form of ID theft identities are completely or partially fabricated. The most common technique involves combining a real social security number with a name and birth date other than the ones associated with the number or visa versa. Synthetic identity theft is more difficult to track as it does not show on either person’s credit report directly, but may appear as an entirely new file in the credit bureau or as a sub-file on one of the victim’s credit reports. Individual victims can be affected if their names become confused with the synthetic identities, or if negative information in their sub-files impacts their credit ratings.

Medical Identity Theft

Medical identity theft occurs when a thief or scam artist seeks healthcare and/or other medical benefits and services using a victim’s identity. In addition to risks of financial harm, common to all forms of identity theft, the thief’s medical history may be added to the victim’s medical records. Inaccurate information in the victim’s records is difficult to correct and may affect future insurability or cause doctors relying on the misinformation to deliver inappropriate medical care.

Child Identity Theft

Child identity theft occurs when a minor’s Social Security number is used by another person for personal gain. This person can be a family member, a friend, or even a stranger who targets children. The Social Security numbers of children are valuable because they do not have any information associated with them. Thieves can establish lines of credit, obtain driver’s licenses, or even buy a house using a child’s identity. This fraud can go undetected for years, as most children do not discover the problem until years later. Child identity theft is fairly common, and studies have shown that the problem is growing.

Financial Identity Theft

Financial identity theft is the most recognizable form of identity theft. A thief obtains information about a victim such as the victim’s name, social security number, or date of birth. The victim can be an adult, a minor, or even deceased. Using this information a thief can obtain credit cards or loans, buy thousands of dollars in merchandise, and buy or lease a home and vehicles. This can be devastating to the victim’s finances and credit history.

Identity Theft of the Deceased

This is the most disturbing form of the crime. Accounts of a deceased person remain open and active until creditors and financial institutions are formally notified of the person’s death or until a periodic update occurs to the Social Security Administration’s death master file. Thieves take action quickly while the family is mourning. Thieves can change beneficiaries on insurance policies, open, access, or empty bank accounts, claim pensions and assets, and potentially devastate the person’s financial estate.

In other variations of the crime thieves use public record information or forged documents to assume the identity of a deceased person, or that of a deceased infant. A birth certificate may be obtained which obtains identifying information. Using this birth certificate, a driver’s license may be obtained and a social security number. Under this identity the thief may apply for credit cards or loans, open accounts, obtain employment, and/or any number of other fraudulent activities.