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Types of Identity Theft
By karen | March 7, 2008
A majority (76%) of the victims surveyed reported that they had been victims of what is called “true name” fraud. This occurs when someone uses pieces of a consumer’s personal identifying information, usually a Social Security number (SSN), to open new accounts in his or her name. Thieves can obtain this information in a variety of ways, from going through a consumer’s garbage looking for financial receipts with account numbers and SSNs, to obtaining SSNs in the workplace, to hacking into computer Internet sites, or buying SSNs online.
The other type of identity theft, experienced by 38% of the respondents, is called “account takeover.” In this type of fraud, the thief gains access to a person’s existing accounts and makes fraudulent charges.
Although the fraud committed against the victims surveyed totaled as much as $200,000, the common themes were that stress, emotional trauma, time lost, and damaged credit reputation — not the financial aspect of the fraud — were the most difficult problems. One victim from Nevada explained, “(T)his is an extremely excruciating and violating experience, and clearly the most difficult obstacle I have ever dealt with.”
Thieves committed various other types of fraud with the respondents’ information, including renting apartments, establishing phone service, obtaining employment, failing to pay taxes, and subscribing to online porn sites. In 15% of the cases, the thief actually committed a crime and provided the victim’s information when he or she was arrested. One victim from California relates a particularly involved case:
“(The thief) smuggled 3,000 pounds of marijuana and gave the duplicate CA driver’s license (my name and #) to the authorities; she convinced them that she was me and they were going to indict me on the charges. (She) received a duplicate California Driver’s License from the DMV with my name and number; rented properties in my name, signed a year lease for one residence, attempted to get credit cards and timeshare financing, bought a brand new truck, had liposuction performed via a line of credit, set up various utilities and services in my name … Worse even, they booked her under my name in the federal prison of Chicago.”
Although most victims did not know how their identity had been stolen, many could point to a loan application requiring personal identification that had been carelessly handled by, say, a real estate agent, or employee records containing a Social Security number that had been used fraudulently by a co-worker or an employer. One victim from Maryland stated confidently, “My situation was directly caused by the policy of health insurance companies who use Social Security numbers and account numbers.” Seventeen percent (17%) of the respondents believed that their information was first used to open up “instant credit” accounts, where the creditors do not conduct a thorough check to make sure the credit grantee is not a fraud. Only 2 of the 66 victims surveyed had reason to believe that the thief had obtained their information via the Internet.
For more information visit: http://www.privacyrights.org/ar/idtheft2000.htm
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