Identity Theft vs Identity Fraud: Understanding the Differences

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Identity Theft vs Identity Fraud
Understanding the Differences
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What is Identity Theft?
Identity theft involves stealing someone's
personal information, like a social security
number, to open fraudulent bank accounts or
conduct illegal activities. Stolen data is
often sold online, causing victims financial and
credit score damage. Recovery is time-consuming,
emphasizing the need for businesses to safeguard
individuals' private information to prevent such
harm.
Learn More in Depth Here Identity Theft vs
Identity Fraud
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Common Identity Theft Methods Used to Steal
Personal Identifying Information (PII)
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Database Attacks
Public Network Interference
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Card Skimming
Malware Attacks
Credentials Purchased on the Dark Web
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Wallet, Document, and Mail Theft
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Fraud with Deep Fakes
Phishing Schemes
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The Different Types of Identity Theft
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Tax Identity Theft
Database Attacks
Financial identity theft involves unauthorized
access to personal information for fraudulent
transactions, including credit card data, bank
account details, and social security numbers.
Tax identity theft entails fraudulently using
someone's details, like Social Security numbers,
to file fake tax returns or unlawfully claim
refunds.
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Medical Identity Theft
Synthetic Identity Theft
Synthetic identity theft forges new deceptive
personas by mixing real and false details,
utilizing valid social security numbers and
forged documents.
Medical ID theft happens when someone uses
another's information for illegal medical
services, obtaining prescription drugs, or filing
false medical claims.
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What is Identity Fraud?
Identity theft involves stealing personal
information, while identity fraud uses the stolen
details for fraudulent activities like
unauthorized account access, creating fake IDs,
opening bank accounts, and making transactions
with false information, posing a threat to
financial security and privacy.
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Common Types of Identity Fraud
Fake IDs
Criminals exploit personal data for fake IDs,
sometimes fooling scans. Identity theft victims
face false accusations. Stolen social security
numbers facilitate the creation of synthetic
identities.
First-Party Fraud
This happens when a customer intentionally
defrauds a financial institution by taking out a
credit line or loan without intending to pay it
back.
Fraud on Credit Cards and Lines of Credit
Fraudsters exploit stolen personal data,
establishing new credit lines or depleting
existing ones. Some adopt a "Frankenstein"
identity, building a fake credit history to
secure higher spending limits and unsecured loans.
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Common Types of Identity Fraud
Fraudulent Use of Government Benefits
Pandemic-driven surge Criminals exploit personal
data for government benefits, causing frequent
and costly theft, draining billions from
taxpayers.
Home Title Fraud
Fraudsters seize property titles, gaining control
over financial details, and assume ownership.
Leveraging the victim's property equity, scammers
secure substantial loans in the victim's name.
Account Takeover
Unauthorized control of financial accounts
happens when scammers alter login details,
excluding the original user. They steal money,
disclose data, and may use fake ATM cards for
repeated thefts.
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Difference Between Synthetic Identity Fraud and
Traditional Identity Fraud
Synthetic Identity Fraud
Traditional Identity Fraud
Creates fictitious identities by mixing real and
fabricated personal information.
Uses someone elses personal information without
their consent.
Definition
Uses an individuals stolen personal information
(e.g., Bank account number, Social Security,
drivers license).
How is it done?
Combines real and fake information to create
entirely new identities.
Businesses and financial institutions can come
under scrutiny due to fraudulent account
openings, defaults, etc.
People or individuals become victims through
stolen IDs, unauthorized transactions, fraudulent
loans, etc.
Financial Impact
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Tips For Preventing Identity Theft
Safeguarding personal information
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Secure online practices
Monitoring financial statements
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Tips For Preventing Identity Fraud
Regularly checking credit reports
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Being cautious with personal information sharing
Implementing strong authentication measures
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CONTACT US
Phone number
Email
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info_at_ftxidentity.com
Website
Location
www.ftxidentity.com
146 Rock Hill Drive, Rock Hill, NY 12775