Identity Theft Types: The 3 Most Dangerous Frauds (2023)

Identity Theft Types

Picture yourself hosting a costume party. Everybody arrives dressed up, masks concealing their identities. Someone decides to come dressed as you. At first, it’s funny, but then they start signing your name, making promises on your behalf, and even spending your money. This is the shadowy world of identity theft.

Summary

Identity theft involves stealing personal information to impersonally impersonate someone, usually for financial gain. This modern-day menace can result in drained bank accounts, damaged credit, and a tarnished reputation, making it an increasingly concerning form of fraud.

Type 1 – Synthetic Identity Theft: This is a blend of real and fake information. Thieves take a real Social Security number but pair it with a different name and birth date. This ‘synthetic’ identity is harder to trace and can allow them to build credit accounts that often fly under the radar.

Type 2 – Medical Identity Theft: Imagine someone else getting treatment, prescriptions, or even surgery using your health insurance. Apart from potential financial loss, the merging of your medical records with the thief’s can lead to misdiagnoses, incorrect treatments, or mistaken allergies in your name.

Type 3 – Child Identity Theft: The exploitation of a minor’s information is particularly devious. A child’s pristine credit is a blank slate, attractive to thieves who can use it undetected for years. By the time the child becomes an adult, their credit may already be compromised, making this a long-con and potentially devastating form of identity theft.

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Identity Theft Types In-depth

Synthetic Identity Theft

Have you ever mixed two paints together? Perhaps, as a child, you combined red and blue to create a delightful shade of purple. Synthetic identity theft works similarly, but instead of paints, identity thieves mix real and fake information to create a ‘new’ person.

Just like a seasoned painter, these identity thieves know their craft. They start with a base — a genuine Social Security number (SSN), often swiped from a minor, elderly person, or someone who doesn’t use their credit frequently. You could imagine this SSN as the canvas upon which they will create their ‘masterpiece.’

The next layer of this deceitful artwork involves fake personal information. Thieves might create a new name, birth date, and sometimes, even a fictitious address. This imaginary person, a blend of real and counterfeit information, is as hard to trace as it would be to separate the red and blue in our purple paint mixture.

Now, you might be wondering, why go through all this trouble? The answer lies in the cunning objective of these fraudsters: to build credit. By applying for credit using this synthetic identity, they might initially get rejected due to the nonexistent credit history. But that’s part of the plan. This rejection generates a credit profile for the synthetic identity. Over time, the thieves apply for more credit, gradually building a credit score linked to a non-existing person. This phantom can then run up massive debts, leaving businesses out of pocket when the bills never get paid.

The real terror of synthetic identity theft is its invisibility cloak. Traditional detection systems are designed to spot inconsistencies between applications and existing records. But with synthetic identity theft, there’s no existing record to check against. It’s like trying to spot a single changed stroke in an original painting — almost impossible unless you know what you’re looking for.

Synthetic identity theft is a profound issue in today’s digital age, costing billions every year. It’s a chilling reminder that sometimes, the most dangerous threats are those we can’t easily see. Remember to protect your personal information and regularly check your credit reports for unusual activity. It’s always better to be safe than sorry, particularly when such talented ‘artists’ are on the prowl.

Medical Identity Theft

Imagine you’re a well-regarded chef. Your signature dish is known citywide. Then, one day, someone gets a copy of your recipe. They start making your dish, but they twist it, adding their own flavors, compromising its integrity. Not only does this damage your reputation, but it also misleads those who consume the dish thinking it’s your original creation. This scenario isn’t far from the reality of medical identity theft.

In the world of identity theft, the ‘chefs’ are medical identity thieves. They’re after a very particular ‘recipe’: your health insurance details. Using stolen personal information, these culprits impersonate individuals to receive medical care, buy prescription drugs, or even file false insurance claims. In essence, they’re cooking up their own medical history under your name.

This can have serious consequences. In the same way our chef’s reputation might be damaged by the poor imitation of his dish, your health records may be tainted by the thief’s medical information. For instance, their blood type, allergies, or medical conditions may get recorded as yours. The result? Potentially dangerous misdiagnoses, incorrect treatments, or the administration of medicines you’re allergic to.

But it’s not just your physical health at stake; your financial wellbeing is at risk, too. The bogus medical bills the thief incurs can leave you with massive debts. Cleaning up the mess can be a nightmare, similar to convincing disappointed diners that the dish they tasted was a counterfeit and not your signature creation.

Detecting medical identity theft is difficult. Unlike our chef who might spot a dubious copy of his dish, you might not immediately realize your medical identity has been stolen. Often, the first signs are mysterious medical bills for treatments you never received or unexplained changes in your health records.

The best way to protect yourself? Be proactive. Keep your insurance cards and documents safe, be wary of who you share your health information with, and regularly review your medical and insurance records for discrepancies. Just as our chef guards his secret recipe, we need to guard our health information from those who might misuse it.

Medical identity theft is a bitter pill to swallow, but with vigilance, we can mitigate the risks. After all, your health information is a recipe that’s uniquely yours, and it deserves to be protected.

Child Identity Theft

Picture a pristine, untouched snowfield. It’s an inviting canvas for any passing child who wants to create a beautiful snow angel or the biggest snowman in town. Now, imagine someone else stepping into this snowy wonderland and leaving deep, muddy footprints. This unwelcome intruder spoils the untouched snow, and any creations made afterwards will forever be marred by their intrusion. This is much like child identity theft.

Children, like untouched snow, represent purity and innocence. Their credit histories are blank slates, untouched snowfields in the financial world. Sadly, this makes them an attractive target for identity thieves. These criminals will steal a child’s Social Security number (SSN), leaving their muddy footprints in the form of fraudulent activity.

The act itself is straightforward yet sinister. A thief obtains a child’s SSN and combines it with a fake name and birth date. With this disguise, they can apply for credit, loans, or government benefits. Because children don’t usually use their credit until they’re adults, these fraudulent activities often go unnoticed for years, much like the footprints hidden under a fresh layer of snow.

The impact of this identity theft can be devastating. By the time the child becomes an adult and applies for their first credit card or loan, they might find their credit is already tarnished. Imagine excitedly building your snowman, only to find the snow beneath is full of grime and sludge.

How can we protect our children from these intruders? Regular checks are crucial. By checking whether a credit file exists under your child’s SSN, you can spot any suspicious activity early on. Educate your children about the importance of privacy and the dangers of sharing personal information online. Keep documents containing personal information securely stored and dispose of them properly when no longer needed.

Child identity theft is a shocking reminder that even the most vulnerable can become victims. But just as we would keep a careful eye on a child playing in the snow, we should also guard their identities in the digital playground. The innocence of childhood should be preserved, both in play and in the world of credit.

Conclusion

Stepping into the world of identity theft is like walking through a hall of mirrors at a carnival. It’s a world of deception, where things aren’t as they seem, and the seemingly innocuous can transform into the harmful. Synthetic, medical, and child identity theft are just three types of identity fraud, each reflecting the cunning tactics employed by modern fraudsters. By understanding these types of identity theft, we can better protect ourselves and our loved ones. Let’s shatter those deceptive mirrors and safeguard our identities from those lurking in the shadows.

How to stay safe online:

• Practice Strong Password Hygiene: Use a unique and complex password for each account. A password manager can help generate and store them. In addition, enable two-factor authentication (2FA) whenever available.
• Invest in Your Safety: Buying the best antivirus for Windows 11 is key for your online security. A high-quality antivirus like Norton, McAfee, or Bitdefender will safeguard your PC from various online threats, including malware, ransomware, and spyware.
• Be Wary of Phishing Attempts: Be cautious when receiving suspicious communications that ask for personal information. Legitimate businesses will never ask for sensitive details via email or text. Before clicking on any links, ensure the sender's authenticity.
• Stay Informed. We cover a wide range of cybersecurity topics on our blog. And there are several credible sources offering threat reports and recommendations, such as NIST, CISA, FBI, ENISA, Symantec, Verizon, Cisco, Crowdstrike, and many more.

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