How to Prevent Different Types of Identity Theft?

Identity theft is a serious concern all across the globe. It’s a crime of obtaining personal details of another person to commit fraud. There are numerous identity theft types, ranging from synthetic identity theft to social security identity theft to financial identity theft. Each theft can harm you in different ways, but you can prevent them by using simple tips and tricks. Let’s find out what these tips are.

Identity theft is a significant problem worldwide. Around 56% of Europeans have experienced at least one type of fraud between 2016 and 2018. Every year, in the United States, 10% of the population is a victim of identity theft. Identity theft is when someone steals your personal information and uses it without your consent. There are numerous types of identity thefts, and each one can affect you differently. Let’s get to know some common identity thefts in brief and how to prevent them.

The Most Horrific Case Of Identity Theft

Types of Identity Theft

Child Identity Theft

Child identity theft happens when someone uses the Social Security number of a child to commit fraud. Frauds can include applying for government benefits, opening credit accounts, or taking out loans unlawfully.

fraud against children

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Cybercriminals can steal a child’s information from accounts at a kid’s favorite store and even from school databases. Therefore, parents must keep their child’s details private, including the Social Security number. According to Javelin Strategy & Research study, child identity fraud hit around 1 million U.S. victims in 2017.
Child Identity Theft

Synthetic Identity Theft

This type of theft includes creating a fake identity by combining real and fabricated data. It is used to take out loans or sign up for credit cards. As per the Federal Trade Commission, it is one of the fastest-growing fraud types in the United States and accounts for 20% of all fraud losses. Stats from Equifax show that it costs the U.S. around $8 billion per year.

impacts of synth id

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Medical Identity Theft

It might cause severe problems for the victim. It occurs when someone steals the victim’s personal information and utilizes it to gain medical services, drugs, or treatments in his/her name. Sometimes bogus medical bills come to victims. If false bills that come to victims go unpaid might cause a big problem. A stat discloses that about  27% of data breaches in 2017 were associated with medical records.

Medical Identity Theft

Financial Identity Theft

This theft is a criminal offense, which involves gaining access to someone’s personal information for making financial fraud. One typical example of financial identity theft is fraudsters steal credit card details to make purchases without a credit card holder’s consent. With more than 271,000 cases, credit card fraud was the most prevalent form of theft in 2019.

Financial Identity Theft

Social Security Identity Theft

Social security identity theft is another common identity theft type. When a thief steals your Social Security number (SSN) and utilizes it to obtain other personal details about you is called social security identity theft.

Once a fraudster knows your name, address, phone number, and date of birth, they might use your identity to commit various types of crimes. Identity hackers can use your SSN to apply for new credit cards, open new bank accounts, register for home and car loans, and rob your tax return. They might even demand Social Security payments that you have received.

Equifax Inc, theU.S. credit bureau, suffered a hack that exposed the personal information, including SSNs. of 145 million individuals.

How to Prevent Identity Thefts

Now you have a good understanding of different types of identity thefts. Let’s find out some tips and tricks to protect yourself from these frauds.
How to Prevent Identity Thefts

Adhere to KYC

If you run a business where you have to contact several people in a day, you must adhere to KYC (Know Your Customer). Complying with KYC not only helps you avoid legal and reputational issues but also prevents fraudsters from using your platform for malicious purposes. An effective KYC process involves knowing a customer’s identity, financial activities, and the risk they pose.

Remember, businesses needs to meet Customer Due Diligence (CDD) and KYC as per the law. Failure to these liabilities might impose hefty fines and even imprisonment.

Be Alert About Fraudulent Activity

Never take the confidentiality of your personal information for granted. If you notice something unusual, report it immediately to the responsible organization before it causes any harm to you. Nowadays, companies provide robust identity verification features, including AML screening, face verification, and digital identity verification services, to reduce fraud risks.

Avoid Giving Out Personal Information

Fraudsters in the disguise of a credit card company employee or customer care executive can ask for your personal information like SSN, credit card PIN, etc. Remember, no legitimate firms ask for such personal details. If you doubt a call is potentially fair, ask the caller to hang up and contact the organization for confirmation.

The Future of Your Personal Data – Privacy vs Monetization

Limit Your Exposure

There is a saying “prevention is better than cure.” It’s always a good idea to limit your exposure. You can limit the number of credit cards you carry in your wallet. Also, don’t carry a social security card until it’s essential.

Employ Robust Identity Verification Solution

If you’re a business person, you must implement verification solutions to deal with different identity fraud types. Furthermore, it will improve your customers’ experience and help you comply with directives like AML (Anti-Money Laundering) and (Know Your Customer). To ensure high accuracy in identity verification, adopt the latest solution.

Ensure the identity verification system you invest in uses advanced technology like artificial intelligence, machine learning, and deep learning. When you combine such a powerful verification system with human intelligence, you get almost 100% results.

iDenfy is a renowned identity verification solution provider that offers AI-enabled ID verification solutions that let you mitigate fraud and meet regulatory compliance. We combine various verification solutions so that you can get everything you need in just one solution. If you want to know more about our services, you can book a meeting.