4.
14 Identity Theft (ID Theft)
This term is used to refer to fraud that involves someone pretending to be
someone else to steal money or get other benefits.
ID theft is a punishable offense under the Indian IT Act (Section 66C and Section
66D).
The statistics on ID theft proves the severity of this fraud and hence a non-profit
organization was found in the US, named as Identity Theft Resource Center
(ITRC), with the objective to extend the support to the society to spread
awareness about this fraud.
Federal Trade Commission (FTC) has provided the statistics about each one of
the identity fraud mentioning prime frauds presented below.
1. Credit card fraud (26%):
2. Bank fraud (17%): Besides credit card fraud, cheque theft and Automatic Teller
Machines
(ATM) pass code theft have been reported that are possible with ID theft
3. Employment fraud (12%): In this fraud, the attacker borrows the victim’s valid SSN to
obtain a job.
4. Government fraud (9%): This type of fraud includes SSN, driver license and income
tax fraud.
5. Loan fraud (5%): It occurs when the attacker applies for a loan on the victim’s name
and this can occur even if the SSN does not match the name exactly.
It is important to note the various usage of ID theft information.
1. 66% of victims’ personal information is used to open a new credit account in their
name.
2. 28% of victims’ personal information is used to purchase cell phone service.
3. 12% of victims end up having warrants issued in their name for financial crimes
committed by the identity thief.
Personally Identifiable Information (PII)
The fraudsters attempts to steal the elements mentioned below, which can express the
purpose of distinguishing individual identity:
1. Full name;
2. national identification number (e.g., SSN);
3. telephone number and mobile phone number;
4. driver’s license number;
5. credit card numbers;
6. digital identity (e.g., E-Mail address, online account ID and password);
7. birth date/birth day;
8. birthplace;
9. face and fingerprints.
The information can be further classified as
(a) non-classifi ed and
(b) classified.
1. Non-classified information
• Public information:
• Personal information:
• Routine business information:
• Private information:
2. Classified information
• Confidential: Information that requires protection and unauthorized disclosure could
damage national security (e.g., information about strength of armed forces and
technical information about weapons).
• Secret: Information that requires substantial protection and unauthorized disclosure
could seriously damage national security (e.g., national security policy, military plans
or intelligence operations).
• Top secret: Information that requires the highest degree of protection and
unauthorized disclosure could severely damage national security (e.g., vital defense
plans and cryptologic intelligence systems).
ID theft fraudsters and/or industrial/international spies target to gain the access to
private, confidential, secret and top secret information.
Types of Identity Theft
1. Financial identity theft;
2. criminal identity theft;
3. identity cloning;
4. business identity theft;
5. medical identity theft;
6. synthetic identity theft;
7. child identity theft.
What Is Identity Theft?
Identity theft happens when someone uses your personal information without
your permission—such as your Social Security number, bank account
number, and credit card information— to gain financial benefits or commit
fraud. Thieves can use your information to access personal accounts, open
up new accounts without your permission, make unauthorized transactions,
or commit crimes.
Thieves can steal anything from a credit card or bank account number to a
driver's license or passport. Victims of identity theft often end up with
damaged credit, incorrect information added to their records, or wrongful
arrest.
To protect yourself, stay informed about data breaches, report any security
incidents, and consider freezing your credit.
Identity theft occurs when someone steals your personal information
and credentials to commit fraud.
There are various forms of identity theft, but the most common is
financial.
Identity theft protection keeps track of people's credit reports, financial
activity, and Social Security number use.
Recovering from the damage caused by identity theft can take
substantial time and effort.
If you are the victim of identity theft, contact the Federal Trade
Commission at IdentityTheft.
Types of Identity Theft
There are several types of identity theft, including:
Financial Identity Theft
Financial identity theft occurs when someone uses another person's identity
or information to obtain credit, goods, services, or benefits. This is the most
common form of identity theft.1
Social Security Identity Theft
Thieves use stolen Social Security numbers to apply for credit cards and
loans resulting in unpaid balances. Fraudsters can also use your number to
receive medical, disability, and other benefits.
Medical Identity Theft
In medical identity theft, someone poses as another person to obtain free
medical care or benefits.3
Synthetic Identity Theft
Synthetic identity theft is a type of fraud in which a criminal combines real
(often stolen) and fake information to create a new identity for fraudulent
accounts and purchases. Synthetic identity theft allows criminals to steal
money from credit card companies and lenders who extend credit to them
based on their fake identities.3
Child Identity Theft
Child and teen identity theft involves using a child's identity for personal gain.
This is common, as children typically do not have the capability to take steps
to create obstacles for the perpetrator.
The fraudster may use the child's name and Social Security number to obtain
a residence, find employment, obtain loans, or avoid arrest on outstanding
warrants. Often, the victim is a family member, the child of a friend, or
someone else close to the perpetrator. Some people even steal the personal
information of deceased loved ones.3
Tax Identity Theft
Tax identity theft occurs when someone uses your personal information to file
a bogus state or federal tax return in your name and collect a refund.3
Criminal Identity Theft
In criminal identity theft, a criminal poses as another person during an arrest
to try to avoid a summons, prevent the discovery of a warrant issued in their
real name, or avoid an arrest or conviction record
Examples of Identity Theft
It can be difficult to know if you've been a victim of identity theft, especially if
you don't check your financial statements regularly. Some clear indicators of
identity theft include:
Bills for items that you didn't buy that you discover on your credit card
statement, online account, or via invoices by email or U.S. mail
Calls from debt collectors on accounts you didn't open
Loan application denials despite thinking your credit is in good standing
Bounced checks
A warrant for your arrest
Unfounded medical bills and explanations of benefits (EOBs) from an
insurance company
Utilities being shut off
Difficulty signing into accounts
Inexplicable hard inquiries into your credit report
New credit cards in your name that you didn't apply for
How to Protect Yourself From Identity Theft
Monitor your accounts regularly: Review your credit report for
suspicious activity and check bank and credit card statements often to
ensure there are no unauthorized transactions
Use strong passwords: Avoid easy passwords that contain personal
or identifiable information. Create passwords with letters, numbers, and
symbols.
Enable two-factor authentication (2FA): Activate 2FA when available
on accounts to add an extra layer of security.
Be cautious online: Limit sharing personal information on social media
and try to always be connected to a secure and private internet
connection.
Stay Informed About Data Breaches: Keep an eye on news about
data breaches involving companies where you have accounts and take
action if your information may have been compromised.
Watch for phishing scams: Always verify links and sources before
providing any details.
Consider Credit Freezes: A credit freeze will restrict access to your
credit report making it hard for a thief to open an account with your
information
Recovering From Identity Theft
Recovery can be a lengthy process. After filing a report with the FTC, take
these steps:
1. Place fraud alerts on all of your credit reports. Fraud alerts are an
added layer of protection in that lenders must confirm your identity
before opening an account, usually via phone.
2. Freeze your credit reports. Freezing your reports prevents access to
any credit information. Your credit report is removed from circulation so
that a lender cannot access it. If access is denied, no account in your
name can be opened.
3. Contact all of the companies involved in the identity
theft. Demonstrate to them that you are a victim of such theft, that you
did not open any accounts, and that no purchases of goods or services
are legitimate.
4. File complaints and dispute charges. Share any other reports you
have filed, such as police reports or reports with the FTC. The Fair
Credit Billing Act and the Electronic Funds Transfer Act work in your
favor.
5. Contact all credit reporting agencies. Dispute any incorrect charges
and information on your credit reports.
6. Contact your bank(s) and credit card companies. Request that they
close your current credit and debit cards and issue you new ones.
7. Change all of your login and password information. Update
passwords and turn on 2FA.
8. Monitor your credit reports. Keep an eye out to ensure that your
personal and financial information remains secure and unavailable to
thieves.
Identity theft is when someone uses another person's personal information for
their own benefit without permission. There are many techniques that
criminals use to steal identities, including:
Techniques of ID Theft
1. Human-based methods:
• Direct access to information:
• Dumpster diving:
• Theft of a purse or wallet:
• Mail theft and rerouting:
• Shoulder surfing:
• Dishonest or mistreated employees:
• Telemarketing and fake telephone calls:
Physical theft: Dumpster diving, mail theft, skimming, and changing
addresses.
Document theft: Stealing data from an ID document, such as a passport or
driver's license
Computer-based technique:
• Backup theft:
• Hacking, unauthorized access to systems and database theft:
• Phishing:
• Pharming:
• Hardware:
Technology-based: Phishing, pharming, DNS cache poisoning, wardriving,
spyware, malware, and viruses
