Did you know there are three types of identity theft? When most people think and talk of ID theft; when they read about ID theft and how to prevent it, they think it terms of financial ID theft. However, financial ID theft is not the only type of ID theft. The crime of Identity Theft and Identity Fraud is classified into one of five major categories.
"There is only one success -
to be able to spend your life in your own way.”
- Christopher Morley |
Some of the cases can involve more than one category. If one is to understand ID theft properly, it is essential to know the three main types of identity theft and what exactly is involved in each. Financial ID Theft This is the most common sort of ID theft. Almost everyone has some financial dealings with the credit institutions as well as some established credit. This key information that is used to obtain credit is precisely what an ID thief targets. Financial ID theft involves the unauthorized use of your name and social security number as well as other key information like date of birth. The thief misuses the information and the identity. With this information, he applies for new credit cards; obtains loans in your name; buys merchandise, homes and vehicles, and basically works to obtain anything of value using your personal information. These thieves can even use your name and social security number to apply for utility services or cell phone charges and run up enormous bills, while you, the victim, are left to explain yourself and clean up the mess. Criminal ID Theft The second of three types of identity theft is criminal ID theft. In this case, a criminal gives the victim's information instead of his/her own when stopped by law enforcement for something illegal. If a warrant is issued, it may unknowingly be issued in the name of victim of the ID theft. The thief may utilize basic information like the victim's date of birth and attempt to access a driver's license, ID card, social security card or other such identification and use the identity to commit fraud in various ways. For instance, to get a job, commit or hide from crime, or provide the victim's information if ever questioned by law enforcement. Such cases can result in criminal records in the victim's name, maybe even outstanding warrants or temporary imprisonment. In some extreme cases of ID theft, the victim has gotten fired due to false accusations of law enforcement. A victim may receive notice to appear in court for crimes he did not commit or he may not even realize the theft till he applies for a job or credit and are declined. In addition, clearing your record can be very difficult if you are implicated in criminal fraud or an identity theft case. Identity Cloning The third in our list of types of identity fraud is that of identify cloning. This is where the thief uses the identity of the victim to start a new life. He lives and works under the victim's identity. The income would be reported under the social security number allotted to the victim, and any credit would be opened in the victim's name. The Internal Revenue Service may be led to believe that the victim is under-reporting income and evading taxes. The thief may collect tax refunds or receive benefits, which are really due to the victim. He may even get a license, get married or file for bankruptcy in the victim's name. Identify cloning is most commonly committed by illegal aliens; people with poor work or financial history, or criminals on the run from law enforcement. This concludes of list of the three main types of identity theft. In closing, you are encouraged to protect your personal and financial information at all times and never share your social security number or pin numbers with anyone.
"Creditors have better memories than debtors;
and creditors are a superstitious sect,
great observers of set days and times."
- Benjamin Franklin |
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Debt is NOT your friend. It's not a wonderful "tool" for building wealth. That's a myth.
