Types of Identity Theft
Understanding the different forms of identity theft and how they affect victims.
Major Types of Identity Theft
Identity theft takes many forms beyond just credit card fraud. Understanding each type helps you protect yourself and recognize when you're targeted.
Financial Identity Theft
Credit Card Fraud
Most Common Type (40% of cases)
Thieves use stolen card numbers for purchases. Open new credit cards in your name. Both existing and new account fraud.
Signs: Unfamiliar charges, unexpected credit cards arriving, credit limit changes
Impact: Fraudulent debt, damaged credit score, collections attempts
Bank Account Takeover
Unauthorized access to checking or savings accounts. Direct withdrawals, transfers, checks written.
Signs: Missing funds, overdraft notices, denied debit card, unauthorized transfers
Impact: Drained accounts, bounced checks, account closure, frozen funds
Loan Fraud
Apply for personal loans, auto loans, mortgages using your identity. You're responsible for repayment.
Signs: Loan inquiries on credit report, collection calls, credit score drop
Impact: Large debts in your name, damaged credit, legal action from lenders
Tax Identity Theft
Tax Refund Fraud
File fraudulent tax return using your SSN to steal refund. IRS rejects your legitimate return.
Signs: IRS says return already filed, W-2 from unknown employer, unexpected tax transcript
Impact: Delayed refund (months), IRS paperwork burden, potential audit
Medical Identity Theft
Healthcare Fraud
Use your insurance to get medical treatment, prescriptions, equipment. Alters your medical records.
Signs: Medical bills for unfamiliar services, insurance denials, incorrect medical history
Impact: Incorrect medical records (dangerous), insurance fraud charges, maxed benefits
Criminal Identity Theft
False Identification
Provides your name and info when arrested. Warrants issued in your name. Criminal record appears on background checks.
Signs: Warrant notice, arrest record you don't recognize, court summons
Impact: False arrest, criminal record, employment issues, must prove innocence
Synthetic Identity Theft
Combined Identity
Combines real SSN (often from child or elderly) with fake name and info. Builds credit slowly then maxes out.
Signs: Harder to detect. May not show on credit report immediately. Pre-approved offers to fake name.
Impact: Damaged credit score, collection attempts, harder to detect and prove
Child Identity Theft
Stolen SSN from Minors
Children's SSNs used because clean credit history. Often undetected until child applies for credit as adult.
Signs: Pre-approved credit offers to child, IRS notice, collections calls
Impact: Years of fraud undetected, damaged credit before adulthood, difficult cleanup
Prevention: Freeze child's credit at all three bureaus. Free for minors.
Account Takeover
- Email: Access to reset other passwords. Read financial statements. Impersonate you.
- Social Media: Scam friends/family. Access personal info. Damage reputation.
- Phone Account: SIM swapping to receive 2FA codes. Port number to new carrier.
- Utilities: Change service address. Run up bills. Cause service disconnection.
Employment Identity Theft
Work Authorization Fraud
Use your SSN for employment. Often by undocumented workers. Affects tax returns and Social Security benefits.
Signs: IRS notice of unreported income, SSA earnings statement shows unknown employers
Impact: Tax liability for unreported income, SSA benefit calculation errors
Government Benefits Fraud
- File for unemployment benefits in your name
- Apply for Social Security or Medicare benefits
- Use your info for government assistance programs
- Often discover when you apply and told benefits already claimed
Least Common But Serious
Estate Identity Theft
Target deceased persons before records updated. Open accounts before death reported.
Senior Identity Theft
Target elderly with confusion or memory issues. Often by family members or caregivers.
Disaster Fraud
During natural disasters when documents lost. Apply for FEMA or insurance benefits in your name.