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Identity Theft vs Identity Fraud: Understanding the Differences

Confused between identity theft and identity fraud? Our in-depth guide defines both, ensuring you understand the distinctions and how to protect yourself against each. Stay informed and secure.

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Identity Theft vs Identity Fraud: Understanding the Differences

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  1. Identity Theft vs Identity Fraud Understanding the Differences

  2. What is Identity Theft? • Identity theft involves stealing someone's personal information, like a social security number, to open fraudulent bank accounts or conduct illegal activities. • Stolen data is often sold online, causing victims financial and credit score damage. Recovery is time-consuming, emphasizing the need for businesses to safeguard individuals' private information to prevent such harm. Learn More in Depth Here: Identity Theft vs Identity Fraud

  3. Common Identity Theft Methods Used to Steal Personal Identifying Information (PII) 1 5 Database Attacks Public Network Interference 6 2 Malware Attacks Card Skimming Credentials Purchased on the Dark Web 3 7 Wallet, Document, and Mail Theft 4 8 Fraud with Deep Fakes Phishing Schemes

  4. The Different Types of Identity Theft 1 3 Tax Identity Theft Database Attacks Financial identity theft involves unauthorized access to personal information for fraudulent transactions, including credit card data, bank account details, and social security numbers. Tax identity theft entails fraudulently using someone's details, like Social Security numbers, to file fake tax returns or unlawfully claim refunds. 2 4 Medical Identity Theft Synthetic Identity Theft Synthetic identity theft forges new deceptive personas by mixing real and false details, utilizing valid social security numbers and forged documents. Medical ID theft happens when someone uses another's information for illegal medical services, obtaining prescription drugs, or filing false medical claims.

  5. What is Identity Fraud? Identity theft involves stealing personal information, while identity fraud uses the stolen details for fraudulent activities like unauthorized account access, creating fake IDs, opening bank accounts, and making transactions with false information, posing a threat to financial security and privacy.

  6. Common Types of Identity Fraud Fake IDs Criminals exploit personal data for fake IDs, sometimes fooling scans. Identity theft victims face false accusations. Stolen social security numbers facilitate the creation of synthetic identities. First-Party Fraud This happens when a customer intentionally defrauds a financial institution by taking out a credit line or loan without intending to pay it back. Fraud on Credit Cards and Lines of Credit Fraudsters exploit stolen personal data, establishing new credit lines or depleting existing ones. Some adopt a "Frankenstein" identity, building a fake credit history to secure higher spending limits and unsecured loans.

  7. Common Types of Identity Fraud Fraudulent Use of Government Benefits Pandemic-driven surge: Criminals exploit personal data for government benefits, causing frequent and costly theft, draining billions from taxpayers. Home Title Fraud Fraudsters seize property titles, gaining control over financial details, and assume ownership. Leveraging the victim's property equity, scammers secure substantial loans in the victim's name. Account Takeover Unauthorized control of financial accounts happens when scammers alter login details, excluding the original user. They steal money, disclose data, and may use fake ATM cards for repeated thefts.

  8. Difference Between Synthetic Identity Fraud and Traditional Identity Fraud Synthetic Identity Fraud Traditional Identity Fraud Creates fictitious identities by mixing real and fabricated personal information. Uses someone else’s personal information without their consent. Definition Uses an individual’s stolen personal information (e.g., Bank account number, Social Security, driver’s license). Combines real and fake information to create entirely new identities. How is it done? Businesses and financial institutions can come under scrutiny due to fraudulent account openings, defaults, etc. People or individuals become victims through stolen IDs, unauthorized transactions, fraudulent loans, etc. Financial Impact

  9. Tips For Preventing Identity Theft Safeguarding personal information 3 1 Secure online practices Monitoring financial statements 2 Tips For Preventing Identity Fraud Regularly checking credit reports 2 Being cautious with personal information sharing Implementing strong authentication measures 3 1

  10. CONTACT US • Phone number • Email • +1 (256) 319 3470 • info@ftxidentity.com • Website • Location • www.ftxidentity.com • 146 Rock Hill Drive, Rock Hill, NY 12775

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