Identity fraud

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Identity fraud is the use by one person of another person's personal information, without authorization, to commit a crime or to deceive or defraud that other person or a third person. Most identity fraud is committed in the context of financial advantages, such as accessing a victim's credit card, bank accounts, or loan accounts. False or forged identity documents have been used in criminal activity (such as to gain access to security areas) or in dealings with government agencies, such as immigration. Today, the identities of real persons are often used in the preparation of these false documents. This can lead to bad consequences and trouble.

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A person's personal information may be surreptitiously obtained, commonly described as identity theft, in a variety of ways. A fraudster may use another person's basic personal details (such as name, address, username, and PIN) to access the victim's online accounts, including banking accounts, email, and social media accounts. Such access may be for the purpose of obtaining further personal information on the target. More seriously, the information may then be used in truly fraudulent activities, such as opening a credit card account in the victim's name and then charging purchases to that account, or the entering into a loan agreement in the victim's name.

Identity fraud may be committed without identity theft, as in the case of the fraudster being given someone's personal information for other reasons but uses it to commit fraud, or when the person whose identity is being used is colluding with the person committing the fraud. [1] There have been numerous cases of organisations being hacked to obtain personal information. One case of identity theft was the 2011 hacking of the PlayStation Network, when personal and credit card information of 77 million accounts were stolen.

The unauthorized use of a stolen credit card is commonly not considered identity fraud, but may be considered consumer fraud. The use of fake names, ID cards, falsified or forged documents, and lying about their own age to simply "hide" their true identity is sometimes also regarded as identity fraud. Reasons for this type of identity fraud may include wanting to purchase tobacco or alcohol as a minor as well as to continue playing on a certain sports team or organization when that person is really too old to compete. [2] [3]

Identity theft

Identity theft is the unauthorized use of another's personal or financial information to defraud an individual or entity into obtaining goods or services. The term 'personal or financial information,' typically refers to a person's name, address, credit card, bank account number, Social Security number, or medical insurance account number. 'Goods or services,' may include bank accounts, credit card purchases, tax refund, a cell phone account, or dishonest claims for state benefits. [4]

Synthetic identity fraud

Synthetic identities are fake identities that combine fake information with actual ID data. For example, combining a real social security number along with a fake address and other synthetic data points. The fraudster can then use the fake identity to acquire driver's licenses, passports and other real ID as well as credit cards and other accounts. It is estimated that synthetic ID fraud accounts for 80% of all credit card fraud losses, and will increase 44% between 2014 and 2018, rising from $5 billion in annual losses to a projected $8 billion. [5]

Children and identity theft

It is estimated that the identity of between 140,000 and 400,000 children are used fraudulently every year. [6] A child's identity is uniquely desirable to identity thieves. Steve Toporoff, an attorney with the Federal Trade Commission's Division of Privacy and Identity Protection, says that while there is a feeling among industry insiders that child identity theft is a major problem, it is very difficult to quantify because, in most instances, people have no clue that they are victims until years after the fact. [7]

See also

Related Research Articles

<span class="mw-page-title-main">Identity theft</span> Deliberate use of someone elses identity, usually as a method to gain a financial advantage

Identity theft, identity piracy or identity infringement occurs when someone uses another's personal identifying information, like their name, identifying number, or credit card number, without their permission, to commit fraud or other crimes. The term identity theft was coined in 1964. Since that time, the definition of identity theft has been legally defined throughout both the U.K. and the U.S. as the theft of personally identifiable information. Identity theft deliberately uses someone else's identity as a method to gain financial advantages or obtain credit and other benefits. The person whose identity has been stolen may suffer adverse consequences, especially if they are falsely held responsible for the perpetrator's actions. Personally identifiable information generally includes a person's name, date of birth, social security number, driver's license number, bank account or credit card numbers, PINs, electronic signatures, fingerprints, passwords, or any other information that can be used to access a person's financial resources.

In criminal law, property is obtained by false pretenses when the acquisition results from the intentional misrepresentation of a past or existing fact.

Bank fraud is the use of potentially illegal means to obtain money, assets, or other property owned or held by a financial institution, or to obtain money from depositors by fraudulently posing as a bank or other financial institution. In many instances, bank fraud is a criminal offence. While the specific elements of particular banking fraud laws vary depending on jurisdictions, the term bank fraud applies to actions that employ a scheme or artifice, as opposed to bank robbery or theft. For this reason, bank fraud is sometimes considered a white-collar crime.

Phone fraud, or more generally communications fraud, is the use of telecommunications products or services with the intention of illegally acquiring money from, or failing to pay, a telecommunication company or its customers.

<span class="mw-page-title-main">Email fraud</span> Deception through email, made for personal gain or to damage another individual

Email fraud is intentional deception for either personal gain or to damage another individual by means of email. Almost as soon as email became widely used, it began to be used as a means to defraud people. Email fraud can take the form of a "con game", or scam. Confidence tricks tend to exploit the inherent greed and dishonesty of its victims. The prospect of a 'bargain' or 'something for nothing' can be very tempting. Email fraud, as with other 'bunco schemes,' usually targets naive individuals who put their confidence in schemes to get rich quickly. These include 'too good to be true' investments or offers to sell popular items at 'impossibly low' prices. Many people have lost their life savings due to fraud.

<span class="mw-page-title-main">Fair and Accurate Credit Transactions Act</span> U.S. federal law

The Fair and Accurate Credit Transactions Act of 2003 is a U.S. federal law, passed by the United States Congress on November 22, 2003, and signed by President George W. Bush on December 4, 2003, as an amendment to the Fair Credit Reporting Act. The act allows consumers to request and obtain a free credit report once every 12 months from each of the three nationwide consumer credit reporting companies. In cooperation with the Federal Trade Commission, the three major credit reporting agencies set up the web site AnnualCreditReport.com to provide free access to annual credit reports.

<span class="mw-page-title-main">Lebanese loop</span> Fraud device used on ATMs

A Lebanese loop is a device used to commit fraud and identity theft by exploiting automated teller machines (ATMs). In its simplest form, it is a strip or sleeve of metal or plastic which blocks the ATM's card slot, causing any inserted card to be apparently retained by the machine, allowing it to be retrieved by the fraudster when the card holder leaves.

A spoofed URL involves one website masquerading as another, often leveraging vulnerabilities in web browser technology to facilitate a malicious computer attack. These attacks are particularly effective against computers that lack up-to-date security patches. Alternatively, some spoofed URLs are crafted for satirical purposes.

Voice phishing, or vishing, is the use of telephony to conduct phishing attacks.

Telemarketing fraud is fraudulent selling conducted over the telephone. The term is also used for telephone fraud not involving selling.

An identity score is a system for detecting identity theft. Identity scores are increasingly being adopted as a means to prevent fraud in business and as a tool to verify and correct public records.

Internet fraud prevention is the act of stopping various types of internet fraud. Due to the many different ways of committing fraud over the Internet, such as stolen credit cards, identity theft, phishing, and chargebacks, users of the Internet, including online merchants, financial institutions and consumers who make online purchases, must make sure to avoid or minimize the risk of falling prey to such scams.

Credit card fraud is an inclusive term for fraud committed using a payment card, such as a credit card or debit card. The purpose may be to obtain goods or services or to make payment to another account, which is controlled by a criminal. The Payment Card Industry Data Security Standard is the data security standard created to help financial institutions process card payments securely and reduce card fraud.

Cyber crime, or computer crime, refers to any crime that involves a computer and a network. The computer may have been used in the commission of a crime, or it may be the target. Netcrime refers, more precisely, to criminal exploitation of the Internet. Issues surrounding this type of crime have become high-profile, particularly those surrounding hacking, copyright infringement, identity theft, child pornography, and child grooming. There are also problems of privacy when confidential information is lost or intercepted, lawfully or otherwise.

<span class="mw-page-title-main">Ghana Card</span> National identity card of Ghana

The Ghana Card is the national Identity card that is issued by the Ghanaian authorities to Ghanaian citizens – both resident and non-resident, legal and permanent residents of foreign nationals. It is proof of identity, citizenship and residence of the holder. The current version is in ID1 format and biometric. It is issued by the National Identification Authority of Ghana and Regarded as a property of the country as such. In July 2023, through the initiative of the Vice President, Dr. Mahamudu Bawumia, new card numbers were issued to newborn babies as part of pilot program to incorporate newborn babies unto the database.

The Lebanese identity card is a compulsory Identity document issued to citizens of the Republic of Lebanon by the police on behalf of the Lebanese Ministry of Interior or in Lebanese embassies/consulates (abroad) free of charge. It is proof of identity, citizenship and residence of the Lebanese citizens.

<i>United States v. Clark</i> Court case

United States of America v. Clark is the name of a lawsuit against Jason Elliott Clark by the U.S. government based on identity theft, bank fraud and conspiracy. This was an appeal from the United States District Court for the District of Minnesota. Clark appealed his conviction for aggravated identity theft based on the sufficiency of the evidence and the court's admission of certain prior acts of evidence.

Identity theft involves obtaining somebody else's identifying information and using it for a criminal purpose. Most often that purpose is to commit financial fraud, such as by obtaining loans or credits in the name of the person whose identity has been stolen. Stolen identifying information might also be used for other reasons, such as to obtain identification cards or for purposes of employment by somebody not legally authorized to work in the United States.

Identity replacement technology is any technology that is used to cover up all or parts of a person's identity, either in real life or virtually. This can include face masks, face authentication technology, and deepfakes on the Internet that spread fake editing of videos and images. Face replacement and identity masking are used by either criminals or law-abiding citizens. Identity replacement tech, when operated on by criminals, leads to heists or robbery activities. Law-abiding citizens utilize identity replacement technology to prevent government or various entities from tracking private information such as locations, social connections, and daily behaviors.

References

  1. ↑ Identity Fraud, definition Archived 2009-06-27 at the Wayback Machine , by Susan Sproule and Norm Archer
  2. ↑ "Report: HS athlete faked name, is actually 21". 9 November 2012. Retrieved 9 November 2012.
  3. ↑ United Kingdom, Cabinet Office (2002), User Identity Fraud: A Study (PDF) (published July 2002)
  4. ↑ "What to Know About Identity Theft", Federal Trade Commission
  5. ↑ "Identifying Synthetic Identity Fraud". March 22, 2017.
  6. ↑ Levin, Adam (12 November 2015), "The Invisible Victims of Identity Theft: Our Kids", The Huffington Post
  7. ↑ Alterman, Elizabeth (10 October 2011), "As Kids Go Online, Identity Theft Claims More Victims", cnbc.com
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