What Is Involved In Identity Theft Fraud?

"Identity Theft" is a term that you have probably heard a lot in recent years. As things become increasingly automated and electronic, your personal data is at a higher risk of being stolen or compromised, resulting in a loss of money, credit, and time. And although most people have heard of identity theft fraud at some point, lots of people still don't understand exactly how it works.

First, the thief has to obtain information about the victim. There are many ways to do this, and it is surprisingly easy to get somebody's information if they are not careless. Some thieves will dig through trash or steal mail to find important documents. This is why a shredder is a good investment. Thieves can also gain massive amounts of data on the internet, using malicious software. The software can log the keys that you press, or trick you into entering your data on an illegitimate site posing as one that you trust. Fortunately, modern antivirus software can protect you from both of these threats.

Victims of identity theft are most frequently targeted because of their good credit. The thief uses the victim's information (such as their social security number) to take on their identity in order to take advantage of their credit. Under the identity of the victim, they will commit some sort of financial crime that varies from case to case. The most common type is loan fraud or mortgage fraud. The scammer applies for a loan under the identity of the victim, and gets a lump sum of money. Then, they disappear, never to be seen again, and the victim is left to pay back the sum.