While embracing technological advancement, we seldom think about the negative side of it. However, the evolving threat ecosystem is an alarming reminder that alongside data and systems, our identity is at stake in the digital world. So, how do we stay safe under such circumstances and adopt robust digital safety?
Lately, identity theft has become a major risk among individuals, leading to financial fraud, legal issues, medical misuse, and personal impact. Experts consider such threats one of the USA’s fastest-growing crimes. Over the years, identity-related fraud has risen sharply across the USA. In 2024, more than 6,471,708 reports were registered for identity fraud in the country, leading to a median fraud loss per victim of $497.
This blog will discuss the major types and examples of identity fraud, alongside offering key strategies to prevent such risks. Firstly, let’s understand identity theft properly.
What is Identity Theft?
Identity theft indicates the situation when someone steals your personal details like name, number, address, email ID, account details, etc., and uses them to commit fraud. Such incidents generally involve a thief and a victim. The thief commonly sits idle and assesses through your discarded documents to steal your personal information.
After stealing the details, the thieves use them to commit identity fraud, causing financial damage, defamation, and further devastating circumstances. Apart from that, insecure browsing, phishing, fraud calls, malware activities, and data breaches also cause identity fraud. Reports find that 70% of identity fraud victims went through digital account takeover, such as social media and digital banking accounts.
Types and Examples of Identity Theft:
Financial Account Takeover:
Financial gain is a common motive for cybercrime, and financial account takeover is a common method of identity theft. Here, fraudsters use the account credentials of people unethically to steal money, buy expensive things, and track additional financial details, like a Social Security number.
Example: An example of financial account takeover includes when scammers go through your discarded bank details, extract card details, and use them for personal gain and purchases.
Medical Identity Fraud:
In cases of medical identity fraud, scammers use individuals' medical details to obtain health care services under their names. Here, medical benefits are exploited while the wrong people impersonate someone else.
Example: Medical identity fraud involves the theft of your name and health insurance details to enjoy medical facilities for free.
Child Identity Theft:
Children are among the easiest targets for identity fraud. Scammers often target youngsters under the age of 16 to create credit accounts, stealing their identities. People under 16 do not usually have credit reports. So, it becomes easier for fraudsters to victimize them.
Example: Fraudsters generally use the name, address, and phone number of people under 16, open credit accounts in their name, and use credit cards while staying undetected.
Synthetic Identity Fraud:
While executing synthetic identity theft, scammers create fake identities of real people using legitimate and fake details about them. These accounts are misused to spread defamatory information and ask for financial gains from people impersonating someone else. Children and deceased individuals are easy targets for such identity theft attempts.
Example: Fraudsters use your real name and photo and combine them with fake attributes to create fake social media accounts while asking for money from your actual acquaintances.
Employee Identity Fraud:
Fraudsters often use a specific employee’s name and details to scam other employees within an organization. They generally ask for money and confidential data to share. Such attempts are not only individual threats but also can create challenges for the organization they work in.
Example: Scammers often target executive-level employees by impersonating higher-level employees of an organization. They end up asking for money and contribute to a bigger scam.
Identity Theft Prevention Strategies for Digital Safety-
- Use Strong Passwords and Regularly Update Them:
Many a time, fraud attempts succeed due to simple and easy-to-crack passwords. So, using strong passwords can save you from identity fraud. Additionally, cybersecurity experts suggest changing or updating passwords regularly to stay safe from identity-related scams.
- Adopt Two-Factor Authentication:
Implementing two-factor authentication, especially in bank accounts, allows users to add an additional layer of protection. You can contact your bank to enable 2FA on your accounts.
- Be Mindful While Sharing Your Personal Details on Digital Platforms:
Oversharing or sharing personal details without giving it a second thought often leads to identity fraud. Scammers are actively keeping an eye on your activities on digital platforms. So, sensible sharing can also save you from identity fraud.
- Continuously Monitor Your Digital Presence and Bank Accounts:
Monitoring your social media, bank, and other accounts consistently can help you identify malicious activities and fraud attempts. It also gives you the opportunity for safe management of your accounts, mitigating scams and identity theft.
Digital Safety is not a Choice, it is Compulsory!
As we advance in a technology‑driven world, safeguarding our digital presence has become a responsibility we can no longer overlook. The journey toward digital safety begins with understanding that our security ultimately lies in our own hands. While mitigating identity fraud, it is important to understand its key types and causes.
Alongside that, adopt the best practices to overcome identity theft, such as using strong passwords and 2FA. Read our in-depth blogs to stay informed about the emerging cybersecurity challenges and practices.
FAQs:
Q1. What is identity theft in cyber crime?
Answer: Identity theft in cybercrime is the unauthorized extraction and usage of personal information of individuals. This can cause defamation, financial damage, and further unwanted consequences. It is also known as identity fraud.
Q2. What are the top 5 cyber crimes?
Answer: Phishing, malware attacks, ransomware, identity fraud, and online fraud are the top five types of cybercrimes.
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