What Are Identity Theft and Identity Fraud?
Identity theft and identity fraud are terms used to refer to all types of crime in which someone wrongfully obtains and uses another person's personal data in some way that involves fraud or deception, typically for economic gain.
What Are The Most Common Ways That Identity Theft
or Fraud Can Happen to You?
- In public places, for example, criminals may engage in "shoulder surfing"– watching you from a nearby location as you punch in your telephone calling card number or credit card number–or listen in on your conversation if you give your credit-card number over the telephone.
- If you receive applications for "pre-approved" credit cards in the mail, but discard them without tearing up the enclosed materials, criminals may retrieve them and try to activate the cards for their use without your knowledge. Also, if your mail is delivered to a place where others have ready access to it, criminals may simply intercept and redirect your mail to another location.
- Many people respond to "spam"– unsolicited E-mail – that promises them some benefit but requests identifying data, without realizing that in many cases, the requester has no intention of keeping his promise. In some cases, criminals reportedly have used computer technology to steal large amounts of personal data.
With enough identifying information about an individual, a criminal can take over that individual's identity to conduct a wide range of crimes. For example:
- False applications for loans and credit cards,
- Fraudulent withdrawals from bank accounts,
- Fraudulent use of telephone calling cards or online accounts, or
- Obtaining other goods or privileges which the criminal might be denied if he were to use his real name
What Can You Do If You've Become a Victim of Identity Theft?
What's The Department of Justice Doing About Identity Theft and Fraud?
The Department of Justice prosecutes cases of identity theft and fraud under a variety of federal statutes. In the fall of 1998, for example, Congress passed the Identity Theft and Assumption Deterrence Act. This legislation created a new offense of identity theft, which prohibits "knowingly transfer[ring] or us[ing], without lawful authority, a means of identification of another person with the intent to commit, or to aid or abet, any unlawful activity that constitutes a violation of Federal law, or that constitutes a felony under any applicable State or local law." 18 U.S.C. § 1028(a)(7). This offense, in most circ*mstances, carries a maximum term of 15 years' imprisonment, a fine, and criminal forfeiture of any personal property used or intended to be used to commit the offense.
Schemes to commit identity theft or fraud may also involve violations of other statutes such as identification fraud (18 U.S.C. § 1028), credit card fraud (18 U.S.C. § 1029), computer fraud (18 U.S.C. § 1030), mail fraud (18 U.S.C. § 1341), wire fraud (18 U.S.C. § 1343), or financial institution fraud (18 U.S.C. § 1344). Each of these federal offenses are felonies that carry substantial penalties –¬ in some cases, as high as 30 years' imprisonment, fines, and criminal forfeiture.
Federal prosecutors work with federal investigative agencies such as the Federal Bureau of Investigation, the United States Secret Service, and the United States Postal Inspection Service to prosecute identity theft and fraud cases.
FAQs
Shield your computer and smartphone.
Use strong passwords. Use firewall, virus and spyware protection software that you update regularly. Steer clear of spyware. Download free software only from sites you know and trust.
How should I respond to the theft of your identity? ›
To report identity theft, contact: The Federal Trade Commission (FTC) online at IdentityTheft.gov or call 1-877-438-4338. The three major credit reporting agencies. Ask them to place fraud alerts and a credit freeze on your accounts.
Is identity theft hard to solve? ›
The bad news is that the more common types of identity theft are complex and can take months to resolve.
How worried should I be about identity theft? ›
So long as you spot the fraud early, it should be relatively easy to solve and result in limited or no financial loss. Identity takeover is much more painful to manage and can be more difficult to detect. To reduce your risk of identity takeover, be very careful with your Social Security number.
What is the best defense against identity theft? ›
But there are 11 things you can do to make it much harder for identity thieves.
- Freeze your credit. ...
- Safeguard your Social Security number. ...
- Be alert to phishing and spoofing. ...
- Use strong passwords and add an authentication step. ...
- Use alerts. ...
- Watch your mailbox. ...
- Shred, shred, shred. ...
- Use a digital wallet.
Steps for Victims of Identity Theft or Fraud
- Place a fraud alert on your credit report.
- Close out accounts that have been tampered with or opened fraudulently.
- Report the identity theft to the Federal Trade Commission.
- File a report with your local police department.
Here are seven steps you can take to fight back against identity theft: Place a fraud alert on your credit report. Report identity theft to the FTC. Review your credit reports.
What if I am a victim of identity theft? ›
Change the passwords, pin numbers, and log in information for all of your potentially affected accounts, including your email accounts, and any accounts that use the same password, pin, or log in information. Contact your police department, report the crime and obtain a police report.
Is my life ruined after identity theft? ›
When criminals gain access to your personally identifiable information (PII) — full name, Social Security number (SSN), birthday, etc. — they can do serious damage to your career, reputation, credit history, and even leave you with a criminal record.
Do identity thieves get caught? ›
Identity thieves and cybercriminals do get caught and more of them are being held accountable for their crimes than ever before. But that doesn't mean that cybercrime is decreasing or that it is anywhere remotely near under control.
Consequences of identity-theft victimization varied by the type of crime victims experienced. A majority of victims (56%) spent 1 day or less resolving financial or credit problems associated with their most recent identity theft.
How long will identity theft last? ›
The Federal Trade Commission (FTC) estimates that it can take approximately six months and 200 hours of work to recover from an identity theft. This estimation is based on the amount of work needed to follow the necessary steps to ensure the victim is not responsible for the debt incurred.
Is identity theft taken seriously? ›
Identity theft is a serious crime. It occurs when your personal information is stolen and used without your knowledge to commit fraud or other crimes. Identity theft can cost you time and money. It can destroy your credit and ruin your good name.
What is the biggest problem with identity theft? ›
This information enables the identity thief to commit numerous forms of fraud: to go on spending sprees under the victim's name, to take over the victim's financial accounts, open new accounts, divert the victim's mail to the thief 's address, apply for loans, credit cards, social benefits, rent apartments, establish ...
Is there a way to recover from identity theft? ›
How to recover from identity theft in 11 steps
- Take inventory of the damage. ...
- Inform your bank. ...
- Place fraud alerts with a credit bureau. ...
- Freeze your credit. ...
- Contact any businesses involved. ...
- Dispute fraudulent activity. ...
- Submit a report with IdentityTheft.gov. ...
- File a police report.
Identity theft is often a pre-cursor to fraud but is not considered a recordable crime. A recordable crime is committed when a financial gain is made from the use of that person's identity by another individual.
How do I check if someone is using my identity? ›
You should review your bank account statements regularly; if you see unknown purchases, that could be a sign that your identity has been stolen. Check credit reports. Similarly, monitor your credit reports from all three credit-reporting bureaus for any unknown accounts or inaccurate information.
