Identity theft, which is also referred to as data theft, is a crime in which someone steals your personal information to make use of it in ways that can harm you or others. In most cases, this type of fraud occurs through the theft of your credit card or bank account numbers, but can also take place via the theft of other types of personal information such as social security numbers, address history, or other personal information. Identity theft is generally considered an illegal activity that can have real negative effects on both victims and individuals who are the target of this crime. While the term itself may sound scary, there are ways that you can protect yourself against identity theft and ensure that you are not at risk.
Identity theft can take place through the intentional use of another individual’s personal information, normally to obtain credit or other benefits from the former person and to the detriment of the former person or his or her loss or inconvenience. There are two different categories of identity theft: identity theft for financial gain and identity theft for other reasons. This distinction comes from how the criminal may use your credit card or bank account number to obtain services and goods from companies who might be scams. However, if the criminal used these items for the purpose of defrauding the victim, this would be considered a more serious type of crime.
Identity theft can often occur in the most subtle of ways. In some cases, people may use the names of their friends and family members to open up accounts in banks or financial institutions. Others will use the name of someone they know who owns a car to purchase one on their own. These are all forms of identity theft, although each may fall into the different category of financial gain versus some other reason.
Financial identity theft involves a thief who uses another person’s name or social security number to get credit cards, loans, or other loans that have been designed for people with similar or even the same financial circumstances. While this may seem like the easiest form of identity theft to carry out, the criminal can go to great lengths to get away with it. For example, if the thief used the stolen credit card to make a late payment or overdraft, the victim will find himself having to pay a higher interest rate on the new credit card, as well as penalties for each missed payment or overdraft. that occurred. Additionally, the victim may be subject to a lower limit of credit, as well as the lender knows that the person whose name is on the account has no ability to pay back the balance.
Identity theft of this kind can also come about when a company, government agency, or organization uses a person’s personal information without their permission to sell credit reports to other parties who may then use this information for their own personal gain. For example, the person whose name is on a credit report can be used for employment purposes, but that person is unaware of it until his or her credit has been negatively affected. The same applies to other financial issues, such as if the individual has been denied a credit card or loans because of his or her bad credit score. If an employee does not receive credit for an item he or she may have requested for or receives a refund from a company, then this would also constitute identity theft.
Many credit card companies have programs that can help credit holders who have their reports negatively affected by identity theft. Credit card companies will offer identity theft protection for a fee. This service protects credit card holders from being directly affected by this type of fraud, but it also allows them to protect themselves from future losses from identity theft, if the crime has already taken place.