Identity Theft and Identity Fraud - presented by Taylor-Leonard Corporation

General Classifications of Identity Theft

There are many forms of Identity Theft and Identity Fraud. For virtually every type of identification, there are means by which that information may be used by criminals and scam artists for illicit gain. Though consumers are now more aware of the dangers of Identity Theft and Identity Fraud, the misconception that financial victimization is the only manner in which a consumer might be negatively impacted is incorrect.

Though there is typically little distinction in criminal penalties, Identity Theft and Identity Fraud generally falls into one of five primary classifications. Some cases can [and often do] involve multiple categories.

1. Financial Identity Theft

The thief obtains key information about the victim [i.e., Name, Social Security Number, date of birth, and/or credit card information] who may be an adult, a minor or even deceased. The thief may obtain credit cards, establish lines of credit, loans, purchase merchandise, buy/lease homes and vehicles, enjoy expensive vacations, etc. in the victim's name.

2. Criminal Identity Theft

Here, the thief misrepresents their identification (as the victim) to law enforcement. The result can include an erroneous criminal record for the victim, outstanding arrest warrants, and even imprisonment. In some cases, the victim may be inexplicably fired from their place of employment due to an "undisclosed conviction."

3. Drivers License Identity Theft

Thieves utilize the victim's personal identifying information along with forged and/or easily obtained identity documents [a birth certificate, for example] to secure a driver's license or government-issued identification card in the victim's name. The victim discovers DUIs and driving related warrants in their name that are not theirs. Unfortunately this discovery happens while they are being arrested.

4. Social Security Number (SSN) Misuse/Identity Theft

SSNs are the most widely utilized personal identifier. Most cases of Identity Theft and Identity Fraud involve some form of theft/misuse of the victim's SSN. The SSN is directly linked to credit files and is required for bank accounts, so financial identity theft cases will typically involve the theft/misuse of the victim's SSN. Thieves can also use a stolen SSN to steal government retirement benefits. Most frequently, SSN ID theft involves someone gaining employment using a stolen SSN and not paying taxes, then the victim is stuck with a tax lien for a debt they did not create.

5. Medical Identity Theft

In this dangerous, emerging type of Identity Theft and Identity Fraud, thieves use a victim's information to obtain health and other medical benefits and services. In addition to the fraudulent billing that may result, there is an even more disturbing, and potentially life-threatening danger -- erroneous medical files. The thief's misuse of the victim's information to obtain healthcare services could result in medical databases containing incorrect information, such as an inaccurate medical history, missed or incorrect documentation of allergies to certain medications, inaccurately documented health conditions or diagnoses, and other dangerous errors that could put the victim's health in jeopardy.

An increasing segment of the population now knows that professional thieves are committing these crimes and getting away with it very easily. People invest thousands of hours and dollars in education, physical and personal development, not realizing that in a few minutes someone could steal their identity and thereby affect their ability to work in their profession, acquire purchases or exercise their rights as a citizen. The author's goal in this brief article is to raise awareness amongst those who desire to be proactive and take action before it happens to them. Risk Management Professionals can protect and also help the consumer in the event of being a victim of any of these categories of Identity Theft or Fraud. 

For more information: www.taylor-leonard.com