Types of Identity Theft & Fraud

Let's start off with a definition of identity theft...

What is Identity Theft?

The most succinct definition of identity theft (which is sometimes referred to as Identity Fraud) is when someone wrongfully obtains and/or uses another person's identifying information for the purpose of fraud or other criminal activity, but typically for economic gain. 

It is said that Identity Theft is the fastest growing crime of the new millennium!

Types of Identity Fraud

There are four general categories of identity fraud you should know about:

• Financial Identity Theft:  This most common and widespread form of identity theft targets individuals and is strictly for economic gain…whether cash or other commodities.  With your identifying data (social security number (SSN), birth date, etc.), this poser can apply for credit cards, loans, telephone service, even lease a vehicle or apartment.
• Commercial (or Business) Identity Theft:  Yes, even businesses can become victims of identity theft.  An unauthorized person can access information that would allow them to obtain credit cards and checking accounts in the business name. And depending on the size and type of business, the fraudulent activity can go on for quite some time.
• Identity Cloning:  In identity cloning, the impostor uses your information to virtually become YOU…for the purposes of establishing a new life.  In other words, this person lives and works as YOU.  This category includes criminals avoiding warrants, illegal aliens, people dodging a poor work and financial history and those who may be attempting to escape abusive relationships.
• Criminal Identity Theft: (also see Identity Cloning) Here’s an example of being framed for a crime you didn’t commit.  When stopped by law enforcement for an alleged crime, this person provides YOUR identifying information upon arrest.  If the impostor manages bail but doesn’t show up for the court date, guess whose name is on the re-arrest warrant?

No matter how and where identity theft strikes, it brings with it an extremely high cost and places its victims on an arduous path to recovery.  As with any other crime, instituting an appropriate identity theft protection plan is key. 

Next, explore:

The High Costs of a Stolen Identity