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What does identity theft mean?
By definition, identity theft is the illegal practice of using another person's personal information, usually for financial gain. Usurpers often look for driver's license or social security numbers with the intention of taking out loans or buying goods. There have also been cases of criminals presenting stolen identification information to the police.
When talking about law enforcement, you may be wondering what type of crime is identity theft. Fortunately, this is a crime and often results in incarceration lasting several years. It also depends on the impact it has had on the victim's life.
Despite the sanctions provided for in the event of identity theft, fraudsters are constantly finding new ways to steal your data. Let's take a look at some of the most common scams.
1. Taking control of the account
This method is based on the use of personal information to access already existing user profiles. It usually involves withdrawing funds from a bank account or paying large bills. Once a criminal takes control, they can change the email address associated with the profile, making it harder to be aware of what's going on. This fraud is quite popular, as online transactions are becoming the most common method of payment.
2. Tax-related identity theft
Once scammers get their hands on your name and Social Security number, they can file your tax return before you do. It's also not uncommon for them to change your income and withholding tax numbers in order to get more money. The good news is that you can protect yourself and get a tax identification number. Thanks to measurements like this one, we recorded a decrease of 57% in 2017 compared to 2015, saving taxpayers over $20 billion.
3. Medical identity theft
The aim of this scam is not always money, but medical services or prescription drugs. In some cases, fraudsters can get expensive equipment and sell it on the black market. To avoid being a victim of this scam, you need to protect your insurance number and the identification number that was assigned to you by your healthcare provider.
You can do this by reviewing refund requests that you receive by mail. You can also go online to monitor any medical activity that is done on your behalf. Remember that this is one of the hardest scams to spot.
Hospitals are responsible for 30% of all major data breaches. Now that you know what medical identity theft is, be sure to take the necessary steps and protect your personal information.
4. Debit or credit card fraud
It is one of the most well known scams. In the age of online and contactless payments, losing your card can have a serious impact on your finances. However, even without access to your physical card, fraudsters can still make unauthorized transactions — if they get their hands on your account number, PIN, and security code.
Regularly checking your card transfers is the best way to protect yourself against identity theft. Also, make sure that you never give your payment details to suspicious websites.
5. Driver's license theft
This scam is very simple and is in fact the most common type of identity fraud. Your driver's license may be sold to someone who looks like you physically - or the thief may use it to buy items under your name.
If they are mistaken for a traffic violation, you may even find yourself wanted by the police. This, in turn, can affect the price of your insurance. So keep an eye on your driver's license and consider a fraud alert on your credit report to protect yourself.
6. Online shopping fraud
There are two ways to commit this type of identity theft.
The former target online shopping sites, create a profile, and try to give the impression of being authentic for a while before taking action. The other takes over existing customer accounts to buy goods, using the original owner's payment information. Very conveniently, they have the products delivered to another address.
To protect you, avoid reusing your password and to fill in your information on questionable sites, even if the discount they offer is attractive.
7. Synthetic identity theft
According to the FTC, it is the fastest-growing type of identity fraud and accounts for approximately 85% of all identity theft cases.
If a scammer obtains a person's name, address, telephone number, or, most importantly, social security number, they create a new personal file that contains real and false data.
Then, these identities can help the scammer take out loans, access financial services that are already available, or apply for jobs. They can also simply sell them on the Dark Web.
If you start receiving phone calls or emails that are addressed to you under a different name, it could be a sign that your data has been stolen.
Luckily, you can do a background check to see who the impostor is.
Who are the most frequent victims?
Now that we've reviewed the definition of identity theft and some of the most popular scams, let's see which groups of people are most likely to be targeted.
1. Young adults
The group most at risk for identity scams are young adults. Research has shown that 40% of fraud victims in 2017 were between the ages of 20 and 29. One reason is that they tend to use cards as payment on a regular basis, giving fraudsters more chances of stealing their data.
Younger people are also more likely to reveal personal information online. This can happen on social media or when they shop from their smartphones using public (and unprotected) Wi-Fi spots.
2. Seniors
Older adults also tend to be victims of identity theft - about 18% of victims are over the age of 79. Older people lost much more on average - $1,092, compared to $400 for young adults.
This group is favored by scammers, as seniors are used to providing their medical and insurance data. They also tend to be less aware of the different methods that a fraudster may use.
Because they're less likely to need credit, seniors don't monitor their accounts as closely. They are therefore an ideal target for identity theft and fraud. Scammers often build relationships over the phone or email and manipulate them into sharing personal information. More than 30% of bank account takeovers involve people over the age of 60.
3. Children
We are also seeing an increase in identity theft among children — Experian studies indicate that this crime may affect 1 in 4 children under 18. Medical and school information is increasingly digitized and young people are connecting to the Internet at an earlier age. This gives hackers more opportunities to get their hands on valuable personal data.
A child's social security number may seem almost useless at first glance. In reality, it can be used to take out loans or receive public benefits and this can go unnoticed for years. Reports show that over 1 million children in the United States have been victims of identity theft, resulting in losses of $2.6 billion. So it makes sense to teach your kids to be careful when they reveal personal information.
4. High-income employees
People who earn more than $75,000 represent 10% of all fraud victims. The reason is clear: they are more profitable targets.
Affluent people also often use credit cards and have multiple accounts, giving thieves more access points.
5. People with weak passwords
If your password is your birth date or, even worse, simply “password,” you should consider something more original. A computer would need less than 10 minutes to crack it. And if you use the same password for multiple websites, you are very likely to be included in identity theft statistics. To improve your safety, create a strong password.
Who is most likely to be the offender?
Now that we know what identity theft is, you might be wondering who could commit such a crime.
We tend to imagine such a person as a hardened criminal with no morals. However, the average fraudster does not have a criminal history, is between 31 and 45 years old and is slightly more often male.
Even more unexpectedly, identity theft statistics reveal that it is quite possible that you know the scammer - especially in cases of fraud involving children or the elderly.
If your child's SSN was stolen, there's a 33% chance that a family friend did it... and an 18% chance that it was your spouse. Older adults can often be forced to share their data by those who care for them.
What is the best protection if you are already a victim of identity theft?
If a fraudster has already got their hands on your information, you need to act as soon as possible. Knowing what an FTC identity theft report is and how to use it can be crucial to limit the damage.
You can use this report to:
- Prove that you were a victim of the crime.
- Preventing a business from collecting a debt
- Protect credit scores
- Place an extended fraud alert on your account
- Permanently prevent false information from appearing on your credit reports.
- You can use a site to find people. These services also frequently monitor your public records and alert you in case of changes.
However, the best way to protect your identity is to get a identity theft protection service.
In addition, we suggest that you visit identitytheft.gov - the government website, specially designed to deal with such cases.
You can get a personal recovery plan and other information to help you.
How can your information be stolen?
Okay, we already know the definition of identity theft. We also discovered why scammers might need your information. Now let's see how they can get them.
Physical identity theft
First, let's look at good old-fashioned physical identity theft. It's not as popular as it used to be, but it's worth mentioning.
1. Dumpster diving
This method relies on sensitive information that is discarded. Thieves usually prowl around corporate trash cans, dive into the dumpster, and look for anything that might be useful — papers or mail. Shredding all personal documents is an essential way to protect yourself.
2. Shoulder surfing
If someone is standing next to you while you fill out paperwork or provide information over the phone, they may be trying to steal it. Always monitor your environment when using personal data.
Digital identity theft
Digital data breaches are a more common way to extract valuable personal information. There are several distinct approaches that a scammer can use.
1. Phishing
Has a Nigerian prince ever contacted you promising wealth in exchange for some personal information? If you didn't respond to this email, congratulations, you've successfully repelled a phishing attack!
In this type of identity fraud, criminals usually present themselves as a trustworthy institution or person. They can contact you via email, phone, or even social media and ask for your data or persuade you to open malicious links and attachments. After all, it is much easier to deceive a person than to successfully bypass a computer's defenses.
Some phishing attackers use social media to find out more about their victims in advance. When they finally contact them, the danger is not necessarily as obvious.
Fraudsters also use a technique called “recognition” so that the user does not notice signs of identity theft. When taking on businesses, they're looking for any information about important employees and even company lingo so they can write credible emails.
Attackers can go so far as to create a website that is visually similar to that of the organization whose identity they are impersonating. They also often use misspelled domain names to get people to open their links.
A few variants have emerged from this type of identity theft scam. These include:
- Spear phishing - fraud that is aimed at specific individuals. Scammers research their prey to make the communication seem genuine.
- Whaling - an attack aimed at large companies or high-ranking employees in order to obtain large amounts of money.
- Evil Twin Wi-Fi - a wireless network that mimics an authentic network, but allows criminals to access transmitted information.
- Clone phishing: a copy of a legitimate email that you have already received, but with modified and malicious links and attachments.
- Vishing - voice messages informing you of suspicious activity on your bank account and urging you to dial a fake number to verify your identity.
Despite this long list, there are still ways to protect yourself against this type of identity theft. The first step is to know what phishing messages typically look like. Additionally, you can use an email filter and avoid potentially malicious websites.
2. Malicious software
Malicious software is one of the most popular from a cyber attack.
Malicious software is a program that is designed to harm your computer. It can be installed on your device through a USB stick or CD player, and more commonly - via the Internet.
The problem with malicious links and infected attachments is that they look normal. You won't even realize that your computer has been infected unless you know how to scan them.
A wide variety of malicious programs exist, but the facts show that Trojans and spyware are the most likely culprits when it comes to identity theft.
- Trojans generally look like normal programs, except that once installed, they create a backdoor for the attacker. This allows them to access all of the information on your computer and even change settings remotely.
- Spyware secretly records what you do on your computer and collects your personal data and account login information.
To protect yourself from malware, it's highly recommended that you be careful about the websites you visit and the files you download. Analyzing your system with a A good antivirus program can also go awayManage useful.
3. Keylogging
By definition, keylogging is almost exclusively an identity theft tool. While it could be used for legitimate surveillance in businesses, criminals understood its potential and misused it for less noble purposes.
Keystroke logging is typically malicious spyware that records all keystrokes on a computer without the user knowing. It can capture your personal data, payment details, or passwords and send them to criminals. It's not hard to see why this might be a problem.
Detecting these programs can also be difficult because they don't actually show up on your desktop. A sign that you may be a victim of this scam is the delay in the symbols appearing on the screen as you type.
The good news is that there are several antivirus programs that can find and remove the keylogger. To avoid getting infected in the first place, the best action you can take is to avoid:
- Leave your devices unlocked
- Open attachments from people you don't know
- Click on suspicious ads and links
On the proactive side, you need to keep your operating system, web browsers, and other software up to date. The latest releases contain new security fixes that will put your security at least partially on autopilot.
A good anti-spyware program can also help.
FAQs
Why would anyone want my information?
Your SSN, driver's license, payment and medical information may be more valuable than you think. A scammer could use your data to take out a loan, withdraw money from your bank account, take advantage of your medical benefits—or even blame you for crimes they've committed.
How can fraudsters steal my personal data?
The facts show that identity scams are more common online than in real life. You may receive emails asking for personal information or open a link or attachment, which may in turn install malicious software on your device. By definition, this malicious software is designed to compromise your security. Scammers may also try to collect your data by looking over your shoulder while you fill out paperwork — or by rummaging through papers thrown away by your company.
How can I protect myself?
If you're wondering what the best protection is against online identity theft, there are a few simple, well-established best practices that you can adopt. Just avoid opening suspicious websites or email attachments from people you don't know. A good antivirus program is also helpful. As for real life interactions, be careful who you give your personal data to and be aware of your surroundings when you write down sensitive information.
What is identity theft anyway?
In case you have skipped the whole article, here is the “too long, not read” version for you. Identity theft is a crime in which an impostor steals personally identifiable information (like your SSN, driver's license, or medical insurance numbers) and impersonates others in order to gain financial gain.
Summary.
Now we know:
- What is identity theft
- How it works
- How to avoid it
By knowing all this, you greatly reduce the risks of having to deal with such a problem.
Like in that awkward fifth grade course, the most important thing to remember is to protect yourself and not share too much with strangers. Or, in other words, the best way to avoid incurring your mother's anger is to make sure her vase stays intact in the first place.
