Identity Theft

Identity theft involves the unauthorized use of someone’s financial or personal information for fraudulent purposes. By obtaining an individual’s personally identifiable information (PII) – name, address, Social Security or driver's license number, etc. – the criminal can effectively “steal” that person’s identity.

While there are multiple ways of acquiring PII, thieves most commonly use social engineering techniques like phishing. Other methods include:

• Stealing wallets and purses, or stealing mail
• Checking trash for documents with personal information
• Using false pretenses to obtain your information from the cardholder’s bank, utility company, or other resources
• Swiping data from businesses where they are a customer or employee (Insider Fraud)

Fraudsters are also able to purchase stolen personal information from the dark web, often for pennies apiece. They may use the existing identity, or cobble different parts together to create a “Frankenstein” identity.

The most common forms of identity theft include:

• Financial Identity Fraud: The most prevalent type of identity theft, financial identity fraud occurs when fraudsters hijack a victim’s identity to commit financial fraud.
• Medical Identity Theft: This form of identity theft happens when fraudsters pose as the legitimate beneficiary of a life or medical insurance policy in order to steal claim proceeds.
• Synthetic Identity Theft: Here, criminals blend real and fake data to create manufactured fake identities, which they use to open bank accounts, build credit, and obtain loans that they fail to repay.
• Child Identity Theft: Fraudsters steal the identity of a child or dependent and use it to commit fraud, obtain employment, or avoid arrest.
• Criminal Identity Theft: A scammer uses someone’s identity to commit crimes, and then frames the victim for said crimes.

To prevent identity theft, individuals should refrain from sharing personal information online, regularly review their bank statements for signs of suspicious activities, properly dispose of personal documents, and protect sensitive account information using strong passwords or multi-factor authentication.