What is Identity Theft?
Identity theft (also known as identity fraud) is the misappropriation of another person’s identifying information in order to: • obtain credit fraudulently from banks and retailers; • steal money from the victim’s existing accounts; • apply for loans; • establish accounts with utility companies; • rent an apartment; • file for bankruptcy; • obtain a job; or • achieve other financial gain using the victim’s name. There are two main classes of economic crime related to identity theft: Account takeover occurs when an identity thief acquires a person’s existing credit or bank account information and either withdraws money or makes purchases. Victims usually learn of account takeover when they receive their monthly credit card or bank account statement. In true identity theft, an identity thief uses another person’s Social Security number and other identifying information to fraudulently open new accounts for financial gain. Victims may be unaware of the fraud for an extended period of time
Identify theft is when someone uses your personal information — like your name, your Social Security number, or your credit card number — to commit fraud. Identity thieves may use your information to open a new credit card account in your name. Then, when they don’t pay the bills, the delinquent account is reported on your credit report. Inaccurate information like that could affect your ability to get credit, insurance, or even a job.
