Identity theft and identity fraud are terms that are commonly used to refer to all types of crimes in which someone wrongfully obtains and uses another person’s personal data in some way that involves fraud or deception. This is typically done to gain some economic gain.
It is one of the most common types of cybercrime that is circulated around. The reason is simple, doing an identity theft tends to be easier. All criminals need to do is to gain access to the victim’s personal information.
There are the top three main types of identity theft that is commonly found in most criminal cases:
- Business or commercial identity theft
Business or commercial identity theft refers to using a business name to gain credit or even billing business clients for products or services. People who commit this kind of crime are often insiders or current or even ex-employees with direct access to operational documentation.
Business identity theft can go on for years without ever being discovered. The reason for this is simple, because the victims of business identity theft often do not find out until losses build significantly or someone finally realize the discrepancies in the books.
In order to be able to do this kind of identity theft, the thief will need to obtain the social security number of a company officer.
- Account takeover fraud
Financial identity theft in the form of account takeover fraud usually means using another person’s account information to obtain products and services using that person’s existing account. It can also mean refer to extracting funds from a person’s bank account.
These type of identity theft are most commonly caused by negligence of keeping the account numbers safe, or it can also be hacked, stolen out of the mail, or even lifted from wallet and purses.
There is also some amount of social engineering that is needed to obtain the data.
In these cases, the victims are the ones who are more often would discover charges on their monthly statements that they did not authorize or funds depleted from an existing bank account.
- New account fraud
This is the most commont type of identity theft that occurs and found. This type of identity theft comes in the form of using another’s personal identifying information to obtain products and services using that persons credit standing.
There are also a huge number of cases in which the victim does not realize after until some time.
Most common, the thief will use a different mailing address, so the victim never sees the new bill for the account. Whenever credit card of the victim is involved, then the thief turns it to cash very quickly, even most of the time buys some items then shipped it to themselves.
The result of this identity theft can be devastating for the victim. The victim might get a lower credit score, and even they would be denied credit. To help you be secure, there are many private detective birmingham that can advise you.