Types of Identity Theft

There are many different types of identity theft. Understanding the various ways in which this crime is committed can help you to understand how to protect yourself from it.

• Loan Fraud:
  
  Loan fraud can cause some of the most massive damage to a person's credit report and be the most time-consuming and costly to avoid due to the size and nature of the crime. Loan fraud occurs when an identity thief uses stolen information in order to apply for a personal loan in the victim's name. The size of these loans can be anywhere from a couple hundred dollars to large enough to buy a new car.
• Utilities Fraud:
  
  This type of identity theft is, unfortunately, common among family members. It usually occurs when parents—who have mismanaged their own accounts—have a utility such as phone or electricity disconnected. Rather than resolve the issue on their account with the utility company by paying what they owe, some parents actually set up a new account for service using their child's social security number. The utility company has no way of knowing the child's name and social security number from that of someone who may have moved into the property after the former occupants had left.
• Government Fraud:
  
  Government fraud occurs when a false identity is used in order to file taxes fraudulently, obtain social security benefits, or even something as simple as a driver's license. Usually the least expensive of the identity theft types, this fraud nonetheless costs consumers who must foot the bill for investigations and prosecution of the identity thieves.
• Bank Fraud:
  
  Bank fraud used to be a lot less sophisticated than it is today, but the ultimate goal is the same – to steal money from banks and their customers using various methods. Check washing, theft, changing how much a check is written for, or ATM theft and pin number.
• Employment:
  
  Employment fraud is one of the most common types of fraud – the exact numbers of it occurring cannot be determined due to the number of ongoing cases, and the lack of reporting.
• Credit Card:
  
  Possibly the most common type of identity theft, credit card ID thieves either steal your credit card number directly from a bogus website or other methods, then run out and charge up an account in your name, or perhaps they steal your identity through other means and open new credit card accounts in your name before enjoying an illegal spending spree, leaving you to handle the bills as they arrive unexpectedly at your home in the next month or so.
• Criminal:
  
  Though all types of identity theft are a violation of the victim, none can be quite so terrifying or shocking as criminal identity theft. Fortunately criminal identity theft – where the perpetrator of a crime is pretending to be someone else – is fairly rare, but it still happens. Imagine being pulled over by an officer for a simple traffic violation, and instead of just writing you a ticket after he comes back from checking his computer, he has his gun drawn and demands you get out of the car. He then arrests you on several criminal offenses you've never committed. This is what happens to victims of criminal identity theft. It can take awhile to clear up (time that you are probably going to spend in jail and paying for a good attorney's help) and secure your release, and longer still to get your record expunged by a judge so that future employers or others who check your record do not see this information there.

Please read our Frequently Asked Questions page if you would like any of your questions answered.