20 Types of identity scam
According to Experian, there are 20 different types of ways a fraudster can fraud or steal your identity.
1. Driver’s license identity theft
Driver’s license theft an extremely common form of ID theft. The person who stole your ID could attempt to buy items under your name and get other forms of identification with their picture which can lead to criminal identity theft.
2. Mail identity theft
Mail identity theft is one of the oldest ways for a criminal to steal your personal information. If your mail has been stolen, a thief may be able to recover your financial account information to make purchases or even open up new credit cards. They could also change your address on your statements or bills.
3. Debit or credit card fraud
Debit or credit card fraud is when someone uses your credit card or credit account to make a purchase you didn’t authorize. Fraudsters can also steal your credit card account number, PIN and security code to make unauthorized transactions, without needing your physical credit card.
4. Online shopping fraud
Online shopping fraud occurs when a criminal controls stolen payment information or fraudulently developed bank or credit card accounts to attempt retail transactions without the account owner’s knowledge. The items purchased are shipped to an address other than victims where the stolen items are sold or shipped overseas.
5. Social security number identity theft
Social security and identity theft can usually happen from data breaks or Tax ID theft. If you start to notice mail that lists the wrong last four digits of your social security or the wrong name or address this may be a sign of fraud or ID theft. Make sure to check your credit report.
6. Account takeover identity theft
Account takeover fraud occurs when criminals gain or have access to your bank or credit card accounts usually because of a data breach, phishing scam, or malware attack and they start making charges to those accounts. This type of identity theft has been around for years. Account takeover identity theft can happen with small businesses, commercial businesses, or even corporate account takeovers.
7. Senior identity theft/scams
Senior identity/scams are very common as older citizens may not be checking their accounts or financial reports often since they’re typically not opening as many new accounts or seeking new credit. The FTC reported that 37% of Americans who are 60 years or older made fraud complaints in 2016; 20% of those complaints were for ID theft. Seniors can fall victim to scammers if they trust the wrong person, who may develop a relationship over time by preying on them over the phone or via email.
8. Child identity theft
Child identity theft may not be as common as other types of ID theft but it is very smart to thieves. That is because there is usually no credit history established for the children who become victims. Scammers sometimes use children’s social security numbers and other information to open new accounts, apply for government benefits, take out loans, and more. The child may not know their credit has been used to run up debt in their name until it’s time to apply for school or car loans.
9. Tax identity theft
Tax identity theft happens when fraudsters have the victim’s name and Social Security number and file a tax return in your name before you file yours. In some cases, the fraudsters use fake income and withholding numbers so they can get a bigger refund check sent to their address.
10. Biometric identity theft
Biometric ID theft is when the physical or behavioural characteristics are used to verify a person’s identity through a device are stolen. These characteristics such as a fingerprint or voice recognition can be copied and recorded. These attributes are unique to individuals but in the wrong hands can be used to manipulate devices or people.
11. Criminal identity theft
Criminal identity theft is when a criminal gives your information to a police officer or law enforcement. This can happen when your ID is lost or stolen and in the possession of a criminal. They provide your name and information if arrested, which could show up on a background check for you or result in a warrant issued under your name
12. Synthetic identity theft
Synthetic identity theft is the fastest-growing type of ID fraud, representing 80-to-85% of all current identity fraud, according to the FTC. Synthetic ID theft merges real and fake personal data to create a new identity using information such as social security numbers, names, addresses, and birthdays that can be bought on the web.
13. New account takeover
New account takeover/identity theft is when a criminal creates a new account under your name using personal information they received from stealing your data, either directly or via a data breach. It is a combination of both synthetic identity theft and account takeover theft.
14. Medical identity theft
Medical identity theft can be harder to discover than other types of ID theft because it happens when someone steals another person’s identity to obtain medical services. As a result, no one may notice for a long time or until the victim receives a statement for care that they never received. More than 27% of data breaches in 2017 were medical or healthcare related.
15. Loan stacking fraud
Loan stacking fraud occurs when multiple loans are taken out by borrowers who slide through today’s automated approval process. Consumers love the ease of access to these online loans and so do fraudsters. Loopholes in online lending marketplaces can result in multiple lenders making loans to the same (fake) borrowers, often within a short period, without the full picture of their rising obligations and declining ability to pay. Loan stacking can affect consumers if these loans are taken out in their name.
16. Mortgage fraud
Mortgage fraud occurs when a borrower, broker or an appraiser lies about information on the application for a mortgage loan. They may do this in order to get approved for a bigger loan or just to get the loan approved.
17. Auto lending fraud
Auto lending fraud can be the same as mortgage fraud or loan stacking fraud and occurs when a consumer, a dealer or auto lender submits or accepts a fraudulent consumer application for credit. Auto dealers can be more concerned about getting customers into a vehicle against doing a thorough identity verification process. Those identity verifications are likely not cross-checked to prevent synthetic ID fraud that can result in loan application losses. At the same time, the borrower may be falsifying information on the loan application in order to get approved for the car. If approved and the loan goes unpaid, the lender takes a loss.
18. Employment identity theft
Employment identity theft is when a criminal applies for a job using the victim’s social security number or ID. Employers report income to the IRS under your name, and the government expects you to pay taxes on all income earned in your name.
19. Bust-out fraud
Bust-out fraud is first-party fraud scheme and a deliberate form of fraud or ID theft that is also known as sleeper fraud. It occurs when a consumer applies for credit and uses their own name or a synthetic identity with the intent of maxing out all available credit and eventually disappearing.
20. Internet of things identity theft
Internet of things identity theft is when your smartphones or tablets are paired with consumer products such as cars, heart monitors and household appliances that are connected to the Internet, creating an opportunity for hackers to steal your data.
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Source: Experian 5th January 2018