What is Identity Theft?

Identity theft is the crime of obtaining the personal or financial information of another person without their permission, typically for financial gain or to commit fraud. The information acquired may be used to steal money, open credit accounts, make health insurance claims and other actions. Identity theft is one of the fastest growing crimes in the United States. According to the National Council on Identity Theft Protection, reports of identity theft have jumped from 3.34 million in 2019 to 5.74 million in 2021.

Key Takeaways

• Identity theft is a type of crime in which an individual’s personal or financial information is stolen without their permission, typically for financial gain or to commit fraud.
• Some of the most common types of identity theft include financial identity theft, medical identity theft, synthetic identity theft and tax identity theft.
• Safeguard personal information such as bank details, passwords and other important data to protect against identity theft.

Common Types of Identity Identity Theft

Identity theft can take a number of different forms. Some of the most prevalent types of identity theft in the United States include:

• Financial Identity Theft: This is the most common classification of identity theft. In cases of financial identity theft, an individual uses another person’s identity or other information in order to obtain goods, services, credit or benefits. The identity thief may open credit card accounts, take out loans or make unauthorized purchases using the victim’s name and credit.
• Medical Identity Theft: Medical identity theft involves using another person’s identity to receive medical treatment or services. This often leaves the victim with incorrect medical records as well as bills of medical treatments they did not receive. This can affect a person’s eligibility for health insurance benefits and damage credit.
• Synthetic Identity Theft: Instead of stealing a complete identity, synthetic identity thieves create new, synthetic identities by combining real and fake information. For example, a thief may use a real name but combine it with a fake Social Security Number. These synthetic identities are then used to open unauthorized accounts and commit fraud.
• Tax Identity Theft: Tax identity theft occurs when a thief uses personal information of another personal to file a tax return or claim a tax refund. For instance, the identity thief may use your information to file a fake return early in the tax season before you file your legitimate return. When you go to file later, your return will get rejected since a return has already been filed under your identity.
• Child Identity Theft: Identity thieves may open fraudulent credit accounts under a child’s name, since most children under 16 do not have credit reports. The thief may open credit cards or take out loans under the child’s name or provide the child’s information when arrested. 

Bottom Line

Identity theft can have devastating consequences, both financially and personally. While it can be difficult to prevent, there are several steps you can take to minimize your chances of becoming a victim to identity theft. This includes careful monitoring of credit reports and accounts as well as proper protection of personal information and sensitive documents. 

If you believe you are a victim of identity theft, it is critical to seek support as soon as possible. Reach out to one of our expert attorneys today for a consultation.