It’s important to understand the types of identity theft, so you can identify when it is happening, and hopefully help stop it in its tracks.
We talk a lot here on the Legal Shred blog about identity theft and the importance of protecting your personal information. The rate at which security breaches continue to be exposed is alarming, and researchers predict that these malicious attacks against people’s personal identities and financial data will only continue to rise. For the reason, it is important to understand the different types of identity theft is, so you can identify when it is happening and hopefully help stop it in its tracks.
Like many other risks, there are several ways an attack on finances can be perpetrated. In this post, we will look at the different types of identity theft.
Medical Identity Theft
This type of identity theft is typically used by fraudsters so that they may obtain prescription drugs, steal hospital services or charge medical fees to an unknowing person’s insurance policy – or even leave medical debts in their name. Not only is this type of identity theft difficult to resolve, it can also create years of improper medical records and be especially difficult to clear up with insurance after the breach has occurred.
Financial Identity Theft
Perhaps one of the most talked-about types of identity theft out there, this method involves stealing personal identifying information from an individual to utilize for financial gain. The criminal will withdraw funds from accounts using spoof cards or take out loans and mortgages even school tuitions in the victim’s name. In addition to ruining someone’s credit score, this type of identity theft could take years and lots of money to try and correct.
Child Identity Theft
Some criminals will go as low as stealing the identity of underage children in order to create fake aliases and perpetrate crimes. Oftentimes because of the child’s age, the scam will not be uncovered until several years later when the child is old enough to buy a car and open a bank account. By then, many years of damage may have been done. Oftentimes these crimes are committed using the child social security number and have been perpetrated by their own family members.
Criminal Identity Theft
While not something many of us typically think about when it comes to having our identity stolen, there is a chance you could be falsely included on a police report if someone being arrested uses your name or address. While not wildly common, there are times when a criminal will not want to give up their real identity due to other charges they may have that could get them into bigger problems, or if they are illegal or undocumented. Clearing these records can be very difficult and will require legal assistance.
The unfortunate thing with all of this is there are many new types of identity theft emerging each day – these are just 5 of the most common. Be sure to look out for warning signs that your information may be compromised.
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