What is Identity Theft and What Risks It Poses
Identity theft also known as identity fraud, is a crime in which an imposter collects key pieces of another person’s personally identifiable information in order to impersonate someone else. Common instances include the using of a person’s name, address, Social Security number, credit card or medical insurance number to obtain money or services under the original holder’s name.
Identity Theft Types
Identity theft is classified into two types: true name and account takeover.
True-name identity theft is where the thief uses personal information to create or open new accounts which may include credit card account, or a checking account to obtain bank checks. Account takeover on the other hand, is where the thief uses personal information to gain access to a person’s existing accounts. Commonly, the thief will change an account’s mailing address and run up a large bill before the actual owner of the account realizes that there is a problem.