IDENTITY THEFT

Identity Theft
By- Ananya Yadav

What is identity theft?
The taken information can be used to run up debt purchasing credit, goods and services in the name of the victim or to provide the thief with false credentials. In rare cases, an imposter might provide false identification to police, creating a criminal record or leaving outstanding arrest warrants for the person whose identity has been stolen.

Types of identity theft
Identity theft is categorized in two ways: true name and account takeover. True-name identity theft means the thief uses personal information to open new accounts. The thief might open a new credit card account, establish cellular phone service or open a new checking account to obtain blank checks.
Account-takeover identity theft is when the imposter uses personal information to gain access to the person’s existing accounts. Typically, the thief will change the mailing address on an account and run up a huge bill before the victim realizes there is a problem. The internet has made it easier for identity thieves to use the information they’ve stolen since transactions can be made without any personal interaction.
There are many different examples of identity theft, including:
• Financial identity theft. This is the most common type of identity theft. Financial identity theft seeks economic benefits by using a stolen identity.
• Tax-related identity theft. In this type of exploit, the criminal files a false tax return with the Internal Revenue Service (IRS). Done by using a stolen Social Security number.
• Medical identity theft. Where, the thief steals information like health insurance member numbers, to receive medical services. The victim’s health insurance provider may get the fraudulent bills. This will be reflected in the victim’s account as services they received.
• Criminal identity theft. In this example, a person under arrest gives stolen identity information to the police. Criminals sometimes back this up with a containing stolen credentials. If this type of exploit is successful, the victim is charged instead of the thief.
• Child identity theft. In this exploit, a child’s Social Security number is misused to apply for government benefits, opening bank accounts and other services. Children’s information is often sought after by criminals because the damage may go unnoticed for a long time.
• Senior identity theft. This type of exploit targets people over the age of 60. Because senior citizens are often identified as theft targets, it is especially important for this seniors to stay on top of the evolving methods thieves use to steal information.
• Identity cloning for concealment. In this type of exploit, a thief impersonates someone else in order to hide from law enforcement or creditors. Because this type isn’t explicitly financially motivated, it’s harder to track, and there often isn’t a paper trail for law enforcement to follow.
• Synthetic identity theft. In this type of exploit, a thief partially or completely fabricates an identity by combining different pieces of PII from different sources. For example, the thief may combine one stolen Social Security number with an unrelated birthdate. Usually, this type of theft is difficult to track because the activities of the thief are recorded files that do not belong to a real person.

Identity theft techniques
Although an identity thief might hack into a database to obtain personal information, experts say it’s more likely the thief will obtain information by using social engineering techniques. These techniques includes the following:
• Mail theft. This is stealing credit card bills and junk mail directly from a victim’s mailbox or from public mailboxes on the street.
• Dumpster diving. Retrieving personal paperwork and discarded mail from trash dumpsters is an easy way for an identity thief to get information. Recipients of preapproved credit card applications often discard them without shredding them first, which greatly increases the risk of credit card theft.
• Shoulder surfing. This happens when the thief gleans information as the victim fills out personal information on a form, enter a passcode on a keypad or provide a credit card number over the telephone.
• Phishing. This involves using email to trick people into offering up their personal information. Phishing emails may contain attachments bearing malware designed to steal personal data or links to fraudulent websites where people are prompted to enter their information.

Impact and prevention
In addition to the immediate impact of losing money and running up debt, individual victims of identity theft can incur severe intangible costs. Some costs include damage to reputation and credit report, which can prevent victims from getting credit or even finding a job. Depending on the circumstances, identity theft can take years to recover from.
To protect yourself from identity theft, experts recommend that individuals regularly check credit reports with major credit bureaus, pay attention to billing cycles and follow up with creditors if bills do not arrive on time.
Additionally, people should:
• destroy unsolicited credit applications;
• watch out for unauthorized transactions on account statements;
• avoid carrying Social Security cards or numbers around;
• avoid giving out personal information in response to unsolicited emails; and
• shred discarded financial documents.
Many state attorney general websites also offer identity theft kits that are designed to educate people with identity theft prevention and recovery. Some of these offerings may include helpful documents and forms. The Identity Theft Affidavit, for example, is the form used to officially file a claim of identity theft with a given business. This form in particular is most often used when new accounts have been opened using a victim’s personal data, not when an already existing account has been illegally accessed.
It is also important to note if an individual is affected by tax-related identity theft, then they should still continue to pay and file taxes, even if they must file paper returns.