Identity theft poses a widespread risk in the current digital era, with various varieties that can cause chaos in individuals’ lives. In 2023, the Federal Trade Commission’s Consumer Sentinel Network received over 5.39 million consumer reports, and 19% of those reports were linked to identity theft.
Comprehending the classifications of identity theft is vital for protecting personal data and securing financial stability. From the deceptive strategies of new account fraud to the alarming outcomes of medical identity theft, each approach presents unique hazards and obstacles. Here are six versions of the most popular types of identity theft.
Fresh Account Deception
Using someone else’s personal identifying details to acquire products and services utilizing that person’s favorable credit rating. This deceit often involves the utilization of the victim’s Social Security number. Opening new utility, cell phone, and/or credit card accounts represent the most prevalent types of new account fraud.
Account Seizure Deception
Utilizing another individual’s account numbers, such as a credit card number, to obtain products and services utilizing that person’s existing accounts or withdrawing funds from a person’s bank account.
Illegal Identity Theft
An individual commits a crime using another person’s identity. The thief, during the illegal act or upon apprehension, pretends to be the victim of identity theft. Frequently, the culprit will possess a forged ID with the victim’s details but the imposter’s photo.
Medical Identity Theft
Medical identity theft arises when an individual utilizes another person’s name and/or health insurance information—without the person’s approval—to receive medical services or goods, or to make deceitful claims for medical goods or services. Medical identity theft frequently leads to inaccurate details being added to the victim’s medical records, resulting in inappropriate and potentially hazardous decisions by medical personnel.
Business or Corporate Identity Theft
Utilizing a company’s name to obtain credit or invoicing clients of those businesses for products and services. Perpetrators who engage in business identity theft are commonly insiders—current or former employees—with direct access to operational records and who manipulate the accounts in favor of their fraudulent activities.
Identity Duplication
This classification encompasses all instances of identity theft. The perpetrator deliberately lives and operates as the victim. They may be concealing their identity in plain view because they are evading legal issues, avoiding child support, or perhaps due to mental health problems.
It is crucial to follow fundamental security measures to safeguard your identity. To shield your identity from theft, consistently monitor your financial accounts for unusual activities and promptly report any irregularities. Protect personal information by refraining from sharing sensitive data on insecure websites or over unsecured Wi-Fi networks. Employ robust, distinct passwords for each online account and activate multi-factor authentication whenever feasible. Lastly, exercise caution regarding phishing schemes and refrain from clicking on suspicious links or providing personal details in response to unsolicited communications.
Refer to our blog article on the primary indicators of identity theft for additional guidance on what to do if you suspect you might be at risk. Additionally, contemplate using an identity theft protection solution, like McAfee+, which offers enhanced peace of mind through continuous identity monitoring and alerts, coupled with up to $2 million in identity theft insurance coverage.
The article Ways to Recognize the Various Types of Identity Theft first appeared on McAfee Blog.
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