9 Types of Identity Theft and How to Prevent Them Successfully

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There are different types of identity theft. Knowing what type of identity theft you are dealing with. However, it also good to know about all of the different kinds of identity theft so that you can take steps to avoid them.

So let us now take a look at ten kinds of identity theft and examine different ways to prevent them:

1. New Credit Card Account Fraud

If a criminal can get your personal information, they can open new credit card accounts in your name. So in order to prevent this type of fraud, it is best to avoid suspicious credit card offers that ask for your personal information. It is also best to shred similar types of junk mail offers that are often filled with various components of your personal information; don’t just throw these sorts of documents in the trash where dumpster divers can get them.

An estimated 2 billion dollars are stolen every year due to online fraud, which has become a $10 billion industry and will continue to grow shortly.

Credit card fraud can be a big problem for consumers, with the number of stolen cards increasing by 14% per year. One of the most common ways to steal credit card numbers is through skimming devices that use a small device to record information from your card’s magnetic stripe and transfer it to another device.

With the credit card network to fraud prevention strategies and to maintain a high level of compliance with all applicable laws and regulations:

  1. The fraud prevention strategy includes market research, commercial intelligence, investigation techniques and techniques, risk assessment techniques, and other resources.
  2. Analyze credit card data using proprietary databases and other tools to detect patterns of fraudulent activity.
  3. Identify high-risk customers by analyzing card details, including social security numbers, date of birth, account number, and expiration date.
  4. Implement new technologies to improve the detection of fraudulent activity and minimize losses to our customers
  5. Work with fraud prevention on high-profile cases where a significant amount of funds may be at risk.
  6. Monitor financials by reviewing third-party reports; analyze fraud activity trends.

2. Existing Account Takeover

If someone can get the proper information, they can access your already existing accounts. In order to prevent this type of crime, you should switch to paperless statements if you haven’t already. By doing this, there are fewer paper documents in existence that have your account information printed on them. You should also pay your bills online, so you don’t have to send your personal information through the mail.

3. Criminal Identity Theft

This type of identity theft occurs when a criminal uses your social security number to get a driver’s license or an identification card issued by a state. If they are arrested while using your identity, you may face many problems. So in order to prevent this type of crime from happening to you, you should never give you social security number to anyone (unless absolutely required for tax purposes), and you should not carry your social security card on your person.

Protect your Social Security to maintain the integrity of the institution’s lending standards and credit policies. This includes analyzing, researching, and developing methods to prevent, deter, and solve identity theft.

Key Takeaways:

  1. Review new credit applications to determine if they meet the company’s lending standards and credit policies
  2. Investigate and resolve consumer disputes within an assigned territory
  3. Monitor credit bureau reports for any discrepancies that may indicate identity theft
  4. Prepare reports to assist management in identifying trends or patterns in fraud activity
  5. Provide fraud prevention education to consumers on behalf of the company
  6. Assist management with fraud prevention initiatives
  7. Act as a liaison between internal departments, external law enforcement agencies, and other outside agencies as needed

4. Medical Identity Fraud

This crime happens when an individual uses your name and insurance information to obtain various types of medical treatments, benefits, and services. This type of crime could be deadly because it creates the possibility of incorrect information being recorded in your medical records. This is one of the many reasons why you should never use a credit card online. There are other options for online payment available, including PayPal and Google wallet.

Medical identity fraud is often the result of a combination of factors, including:

  1. Information that can easily be obtained from public sources (e.g., name, date of birth, Social Security number)
  2. Information that is readily available to medical providers (e.g., health insurance policy number)
  3. Personal information about the individual (e.g., driver’s license number, mother’s maiden name)
  4. Track trends in fraudulent activity across multiple jurisdictions and a variety of insurance carriers

5. Business Identity Theft

By using the information of a business, a criminal can get credit and even charge the clients of the business for products and services. These schemes are often performed by insiders. That is why it is important to keep your sensitive paper information locked in a safe. You should also buy a computer that stands alone by itself and is not hooked up to the internet or any other types of networks, so you can perform your financial calculations in a completely secure location.

6. Assuming an Identity

This type of criminal activity involves a person assuming the identity of another person. This unusual crime is often committed by people who are running from the law and people who have mental problems. By hiring a credit monitoring agency, you can see if there is any suspicious activity going on with your accounts. This is probably the best way to prevent this type of identity theft.

Since most government programs only require your SSN and your name, a criminal with this data is able to apply for benefits in your name. This is yet another reason why you should protect your SSN by never sharing it online.

7. Tax Return Fraud

If a person has your SSN, they can file a fake tax return and receive your refund check before you can get it. That is why you need to take all of the appropriate measures to keep your SSN from getting into the wrong hands. This includes not giving it to businesses that ask for it but tdo not have to have it for tax purposes.

Researcher will be responsible for determining if a tax return is a fraud or not. Researcher will also take on the responsibility of resolving disputes between taxpayers and the IRS.

Responsibilities:

  1. Investigating fraudulent activities of tax return preparers by reviewing submitted returns for indications of fraud
  2. Resolving disputes between taxpayers and the IRS
  3. Providing information to taxpayers about their tax issues

8. Employment Identity Theft

This type of identity theft involves a person using another individual’s SSN when applying for jobs. This sort of activity is common with illegal immigrants. Therefore, you need to be hesitant with any sort of foreign business that looks suspicious, and if you are victim to this type of crime, then contact the IRS immediately as well as the employers that supposedly paid you wages.

9. Utility Fraud

With this type of crime, a thief will open new utilities accounts in your name to get cable service, electricity, gas, or water. They usually do not stay in one location for long, so they are often hard to track down. By accessing your credit report regularly, you can monitor your records for this type of activity and shut it down if there are signs of it occurring. There are many credit card companies that provide you with your credit report for free. You can also contact the three credit-reporting bureaus: Equifax, Experian, and TransUnion.

In Conclusion

Because of all of these reasons, you should seriously considering hiring an identity theft insurance company as another way to prevent identity theft. With all of the things that may go wrong, a little insurance could save you a lot of trouble if you are ever a victim of one of these crimes. This kind of insurance will also give you peace of mind because you know someone is constantly looking out for you.

Staff
Staff
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