Types of Identity Theft

Overview of Identity Theft Types

Identity theft occurs when someone uses your personal information without permission to commit fraud or other crimes. Understanding the different types helps you protect yourself and recognize when you're a victim.

Financial Identity Theft

What It Is

The most common form where criminals use your information to obtain financial gain.

Common Methods

• Credit Card Fraud: Opening new credit cards in your name
• Bank Account Takeover: Accessing existing accounts
• Loan Fraud: Taking out loans using your identity
• Tax Refund Theft: Filing false returns to steal refunds

Warning Signs

• Unfamiliar accounts on credit report
• Missing bills or statements
• Denied credit unexpectedly
• Collection calls for unknown debts
• IRS notice about unreported income

Medical Identity Theft

What It Is

Someone uses your health insurance or personal information to obtain medical services, prescriptions, or submit false billing.

Impact

• Incorrect medical records
• Insurance benefits exhausted
• Denied coverage for actual conditions
• Bills for services you didn't receive
• Potential life-threatening record errors

Warning Signs

• Medical bills for unfamiliar services
• Calls from debt collectors about medical debts
• Insurance denials for maximum benefits reached
• Unfamiliar entries in medical records

Criminal Identity Theft

What It Is

A criminal provides your information when arrested or cited, resulting in a criminal record under your name.

Consequences

• Criminal record in your name
• Arrest warrants issued for you
• Difficulty passing background checks
• Employment problems
• Actual arrest for crimes you didn't commit

Warning Signs

• Summons for court appearance you didn't know about
• Arrest warrant in your name
• Background check shows unfamiliar crimes
• Notification from law enforcement

Synthetic Identity Theft

What It Is

Criminals combine real and fake information to create a new identity, often using a legitimate SSN (commonly from children).

Why It's Dangerous

• Hardest type to detect
• Can go unnoticed for years
• Difficult to resolve
• Often targets children's SSNs
• Creates credit profile separate from yours

Warning Signs

• Pre-approved credit offers for your child
• IRS notice of income for a minor
• Credit report exists for child under 18
• Collection calls for child

Child Identity Theft

What It Is

Use of a child's SSN to open accounts, apply for benefits, or obtain employment.

Why Children Are Targets

• Clean credit history
• Rarely checked until adulthood
• Years before discovery
• SSN not actively monitored

How to Discover

• Request credit report at age 16
• Watch for unusual mail addressed to child
• IRS notices
• Denied benefits or services

Social Security Identity Theft

What It Is

Someone uses your SSN to work, receive benefits, or file taxes.

Impact

• Income reported under your SSN you didn't earn
• Reduced Social Security benefits
• Tax complications
• Immigration issues if thief is undocumented

Warning Signs

• SSA statement shows incorrect earnings
• IRS notice of unreported income
• Rejected for benefits already being received
• Employer reports SSN already in use

Account Takeover

What It Is

Criminal gains access to your existing accounts (bank, credit card, online accounts).

How It Happens

• Phishing emails
• Data breaches
• Stolen passwords
• Social engineering
• Malware/keyloggers

Warning Signs

• Unable to access accounts
• Unauthorized transactions
• Password change notifications you didn't make
• Unfamiliar device login alerts

Driver's License/ID Theft

What It Is

Use of your ID for various illegal purposes including obtaining services, employment, or evading law enforcement.

Consequences

• Traffic violations under your name
• Points on your driving record
• Suspended license
• Criminal charges

Employment Identity Theft

What It Is

Someone uses your SSN to obtain employment.

Impact

• Incorrect IRS W-2 information
• Taxes owed on income you didn't earn
• Reduced unemployment or disability benefits
• Immigration problems

Protection Strategies by Type

Financial

• Credit freeze or fraud alerts
• Monitor credit reports
• Strong passwords and 2FA

Medical

• Review medical records annually
• Check insurance EOBs carefully
• Secure health insurance cards

Child

• Freeze child's credit at age 16
• Monitor for pre-approved offers
• Limit sharing of child's SSN