20 Different Types of Identity Theft and Fraud

1. Account Takeover Fraud

In account takeover fraud, criminals use stolen personal information such as account numbers, usernames or passwords to hijack bank accounts, credit cards, cellular phone services and/or email or social media accounts.

How this type of fraud happens: Crooks access victims’ accounts using stolen credentials. Then, they change the password, email, street address or phone number associated with the account, preventing the owner from accessing it.

How to avoid it: Get in the habit of checking your social and financial apps or web dashboards regularly. You can use the opportunity to check for unusual transactions, and if you can’t get access to your account, notify the provider immediately.

When available, use multifactor authentication or biometric login procedures to hinder unauthorized account access.

Consider using a password manager to generate and remember strong, random passwords, and change your passwords and PINs regularly: Experts recommend updating them as often as once every 90 days, or anytime you think one might have been compromised.

Learn more >> Should I Use a Password Manager?

2. Debit Card Fraud or Credit Card Fraud

In debit and credit card fraud, criminals use stolen financial information to make unauthorized purchases or access funds from your account.

How this type of fraud happens: Using stolen account information, criminals make unauthorized debit card or credit card purchases or withdraw funds. Then, they leave you (or your financial institution) on the hook for the stolen funds.

How to avoid it: Keep close watch on your credit and debit cards to minimize the chances of loss or theft, and so you’ll know quickly if they go missing. Lock cards as soon as you suspect they’ve been misplaced, and request replacements if you don’t locate them quickly.

Study your card and checking statements carefully for signs of unauthorized use. Note that tiny transactions can occur when thieves link your account to their own accounts and may be precursors to more substantial withdrawals or funds transfers.

Learn more >> How to Freeze a Credit Card

3. Driver’s License Identity Theft

Driver’s license identity theft is when a criminal uses your driver’s license to impersonate you.

How this type of fraud happens: Your driver’s license contains personally identifiable information (PII) that identity thieves can use to impersonate you or commit financial fraud. Driver’s license identity theft occurs when a criminal steals your driver’s license or obtains your license number illegally. They may use it to create a fake ID card or a synthetic identity, or to open new accounts in your name.

How to avoid it: Only use your driver’s license information when absolutely necessary, and keep your wallet safe. If your license is stolen, report it to the DMV and local police as soon as you discover it. Also, monitor your credit reports for signs of unauthorized activity.

Learn more >> What Should I Do if My Driver’s License Number Is Stolen?

4. Mail Identity Theft

Mail identity theft happens when a criminal steals personal information from your mail, then uses the information they find to impersonate you or carry out acts of fraud.

How this type of fraud happens: Criminals who steal mail from your mailbox or a postal facility can obtain and alter checks and cash them; obtain credit or debit cards they then misuse; or comb your bills and financial statements for personal information that helps them steal your identity.

How to avoid it: Minimize reliance on paper checks by arranging for direct deposit of Social Security and pension payments, unemployment benefits and other recurring payments.

Alert your card issuer if a new or replacement credit card isn’t delivered in a timely fashion.

Stop mail delivery when you’re away from home for more than a day or two or arrange for a friend or neighbor to pick it up daily.

Learn more >> How to Protect Yourself From Mail Fraud

5. Online Shopping Fraud

Online shopping fraud is a specific case of card-not-present transactions—purchases made using a card number without having to present a physical card.

How this type of fraud happens: Thieves who’ve obtained stolen card numbers, expiration dates and security codes can use that information to commit fraud, as can thieves who steal your username and password to shopping sites where you’ve stored credit card information. Criminals buy goods or gift cards which they use or resell, leaving you (or the merchant) with an unpaid bill or lost merchandise.

How to avoid it: To protect yourself while shopping online, use strong passwords on your accounts with online retailers. Avoid storing credit card information in your account, and make sure you use secure Wi-Fi networks when shopping online.

Cancel and replace cards as soon as they go missing or if you suspect your card number may have been compromised.

Study your card statements closely and report any unauthorized transactions to the card issuer immediately.

6. Social Security Number Identity Theft

Social Security number (SSN) identity theft happens when a criminal gets their hands on your SSN. When someone has your SSN, they can use it to steal your money or commit other acts of fraud by impersonating you.

How this type of fraud happens: Unlike personal information that can be found in public records, SSNs are typically kept confidential and used to verify your identity with trusted institutions. Possession of your SSN can provide criminals with access to a wealth of personal records, which they can exploit in a variety of ways.

Scammers may gain access to your SSN by:

• Stealing your Social Security card
• Transcribing your SSN when you read it aloud
• Obtaining it in a data breach

How to avoid it: Don’t carry your Social Security card in your wallet, and keep it in a secure place such as a safety deposit box. If you’re asked for your SSN to verify your identity, see if the final four digits will suffice.

Whether providing a full or partial SSN, make sure you know the party you’re providing it to and that you do so in a way others cannot overhear.

If you suspect criminals have obtained your Social Security number via a data breach or any other means, monitor your credit reports, financial statements and medical accounts closely for signs of abuse, and report suspicious activity to law enforcement as appropriate.

Learn more >> Here’s What You Should Do After a Data Breach

7. Senior Identity Theft and Scams

Senior citizens can be targets of many types of fraud, but their reliance on Medicare and Social Security can make them especially susceptible to criminals posing as representatives of government agencies and health care providers.

How this type of fraud happens: Using convincing emails, letters or phone contact, scammers earn victims’ trust and persuade them to hand over money or sensitive information. For example, they may ask you to “pay back” bogus overpayments or give up Social Security numbers or other personal data that can be used for other criminal ends.

Their approach typically leverages “official” authority and may include persuasion and scare tactics. For example, they may say, “Your benefits will end unless you act immediately.”

How to avoid it: Beware of any unexpected contact that requires immediate action, especially if it involves making a payment or providing SSNs or financial account information.

Before responding to unexpected communication from government agencies or health care companies, confirm that it really comes from the source in question. Rather than providing information when an organization contacts you, call or email the relevant agency using contact info you look up online or on your account statement and verify whether there’s a legitimate reason for the contact.

Never give your SSN or financial information to someone who calls you and asks for it, especially if they’re seeking information they should already have on file. Legitimate attempts to recover misplaced funds will always be made by mail. “Authorities” insisting on immediate payment—especially in the form of gift cards or electronic funds transfer—may well be scammers.

Learn more >> Top Scams Targeting Seniors

8. Child Identity Theft

Child identity theft is any kind of identity theft that targets minors. It can be especially difficult to detect child identity theft because the telltale signs may go undetected until the child applies for credit, usually after age 18.

How this type of fraud happens: Criminals may be able to use minor children’s Social Security numbers and other credentials to take out illicit credit card accounts and to commit other forms of identity theft, much as they do with adults’ personal information.

How to avoid it: Children don’t normally have credit reports, but as a parent or guardian, you can obtain one for each child at the three national credit bureaus (Experian, TransUnion and Equifax). You also have the right to freeze your child’s credit report to help protect them from credit fraud.

Learn more >> How to Protect Your Child From Identity Theft

9. Tax Identity Theft

Tax identity theft is when someone uses your personal information to carry out tax fraud.

How this type of fraud happens: The most common form of tax identity theft occurs when a criminal uses your Social Security number and other personal information to file a tax return in your name so they can steal your refund.

Fraudsters can also use your stolen credentials to get jobs they’re legally ineligible for, which may cause their earnings to be logged as your taxable income.

How to avoid it: Understand that the IRS always makes its first official outreach by postal mail, so be skeptical of any phone call, email or text supposedly from the IRS that isn’t preceded by a letter.

Tax fraudsters often harvest information by posing as IRS representatives, using email, text or phone calls. Their goal is to trick victims into disclosing their SSNs and other personal details with false promises to expedite a refund or prevent an audit, for example.

If you get a letter from the IRS, read it carefully and follow up; if it concerns activity that’s unfamiliar to you, identity theft could be in play.

10. Biometric Identity Theft

Biometric ID theft hijacks security measures such as facial recognition and fingerprint recognition, which use physical characteristics to unlock computers, phones, tablets and other secured devices.

How this type of fraud happens: Criminals may use high-resolution photos, fingerprints lifted from glassware or other facsimiles of your physical traits to gain access to your devices and the personal data they contain. They may also link your personal information to their own fingerprints, faces or other biometric identifiers when attempting to impersonate you.

How to avoid it: Replicating your physical traits to unlock your devices is relatively difficult, and enabling biometric security measures can help safeguard your data. In case your device is stolen, familiarize yourself with the procedures for locking it remotely so thieves can’t readily access its contents, change passwords or assign new biometrics to its security settings.

11. Synthetic Identity Theft

Synthetic identity theft is a form of fraud where an identity thief combines stolen information from one victim with other (real or invented) information to compile a new, false identity.

How this type of fraud happens: Synthetic identity theft occurs when criminals merge elements of your personal information with those of one or more other victims to create a fictitious identity. They may get their hands on victims’ information through phishing, for example.

Crimes committed through synthetic identity theft can be hard to detect because no single victim is likely to be aware of the full extent of the fraudulent activity.

How to avoid it: Monitor your credit reports and financial accounts for unusual activity. Also watch out for and consider following up on mail addressed to persons who don’t reside at your address or phone inquiries seeking individuals you don’t know.

12. Medical Identity Theft

Medical identity theft is when someone fraudulently uses someone else’s personal information to obtain unauthorized medical treatment, prescriptions or medical equipment.

How this type of fraud happens: Medical identity theft often involves persons known to the victim, and can generate large bills. Thieves may use documents proving your identity (such as your driver’s license or Social Security card), or your health insurance card or policy number, to receive medical services.

How to avoid it: Take care to limit access to your insurance ID cards. Monitor your medical statements carefully to check for unfamiliar charges. Check your credit reports regularly for signs that medical service providers are attempting to collect unpaid bills. Notify your health insurer and medical provider immediately if you see anything suspicious.

Learn more >> How to Avoid Medical Identity Theft

13. Mortgage Fraud

Mortgage fraud occurs when a party in a home sale intentionally misleads the other party about the nature of the transaction.

How this type of fraud happens: A home seller might commit mortgage fraud by concealing information or defects that adversely affect the home’s value (and the amount a lender would be willing to offer for financing).

On the other hand, a buyer might commit fraud by falsifying their income or assets in order to secure a larger mortgage than they can afford.

How to avoid it: The best way to avoid mortgage fraud is to work with reputable real estate professionals, including agents, mortgage brokers, attorneys and appraisers. You should never fudge information on a mortgage application or disclosure form, and avoid any professionals who suggest it.

14. Home Title Fraud

Home title fraud is a type of scam in which a criminal steals a home’s title to change ownership of the home into their name.

How this type of fraud happens: Home title fraud occurs when someone impersonates you to gain possession of your property title. Then, they use it alongside other personal information to transfer ownership to themselves. This enables them to use your home as collateral on loans and lines of credit they won’t repay, which could lead to foreclosure.

How to avoid it: If you receive notices from your mortgage servicer or a property tax bill in someone else’s name, or your automatic mortgage and tax payments stop without explanation, look into the possibility of title fraud.

You can also verify the status of your home title with your county’s deed office or use a commercial title protection company to safeguard its status.

Tip: If you’re interested in title protection, be sure to research providers yourself. An unsolicited offer from such a company could be a scam.

15. Passport Fraud

Passport fraud is when a criminal uses a lost or stolen passport to commit identity theft, possibly by impersonating a victim or creating false travel documents.

How this type of fraud happens: Criminals may use stolen passports to enter a country illegally or carry out financial crimes, such as smuggling.

Also, because a passport is a legal ID, they also could use it to impersonate you. For example, they could attempt to open a bank account or commit other fraud in your name. In some cases, criminals may also use the identity of a deceased person to apply for a passport.

How to avoid it: At home, secure your passport in a safe or safe deposit box. When traveling, store your passport in a secure wallet and keep it on your person or in a hotel safe. If your passport is lost or stolen, you can invalidate it by reporting it missing. If you’re out of the country, contact your local embassy or consulate for assistance.

Learn more >> How to Protect Yourself From Passport Scams

16. Internet of Things Identity Fraud

This fraud takes advantage of security flaws in your internet-connected devices to go after your personal data.

How this type of fraud happens: The internet of things (IoT) refers to smart appliances, thermostats, TVs and digital assistant speakers that communicate over the internet via your home network. Security flaws in your home devices can create an opening for criminals to hack into your network, steal your personal data, or make unauthorized purchases using your credentials.

How to avoid it: Securing your home’s network, including your Wi-Fi router, is a good place to start. Reset default passwords for all devices and replace them with unique, secure ones. Then, change your passwords out at least annually (when you change your smoke alarm batteries, for example).

17. Friendly Fraud

Merchants and credit card issuers use the term “friendly fraud” to distinguish chargeback theft by legitimate cardholders from those of unfriendly thieves who use stolen credentials.

How this type of fraud happens: Friendly fraud occurs when a cardholder makes an online purchase via credit card, receives the order, then obtains a refund by falsely claiming the item was never delivered or that it was defective or otherwise not as the seller described.

Friendly fraud can also occur unintentionally if a family member or other person with permission to use a card misuses it and then denies having done so, prompting the cardholder to reverse a legitimate charge.

How to avoid it: The main way you can avoid friendly fraud is ensuring you only dispute credit card charges that you’re confident are fraudulent. Being aware of when and how others use your card can help prevent the accidental kind of friendly fraud.

18. Employment Fraud

In employment fraud, a scammer lures job seekers into giving up personal information or money using fake job opportunities.

How this type of fraud happens: Employment fraud preys on job seekers by recruiting victims to “lucrative” nonexistent positions. Then, they tell you that you must pay to finalize the hiring process. They may ask you to purchase safety equipment, training materials, uniforms or other bogus goods or services.

Once they have your money, the recruiters vanish without a trace.

How to avoid it: If approached with a job prospect via email, text or social media, do not respond until you do some investigating. Contact the hiring company or recruiter directly (using a phone number or email address you obtain via web search) to confirm whether the outreach is legitimate. Look for a relevant LinkedIn profile for the person who’s contacted you.

Even if all that checks out, if the recruiter seeks payment of any kind, break contact. Report the scam to appropriate authorities, including the platform where you received the messages.

19. Unemployment Fraud

Unemployment fraud is a type of identity theft in which a criminal impersonates someone in order to collect unemployment benefits.

How this type of fraud happens: Using a victim’s personal information, a criminal files a claim for unemployment insurance in the victim’s name. Benefit payments may be deposited directly onto a bogus debit card or bank account.

Victims may be unaware until they receive a 1099-G tax form reporting taxable unemployment income. Or, they may find out they’ve been targeted when they file for legitimate unemployment and find their benefits are used up.

How to avoid it: If you don’t have one, set up an account with ID.me — a third-party company that provides identity-verification services to many state and federal agencies. An ID.me account is a prerequisite to collecting unemployment in many states, and even if you never need to collect, setting up your ID.me account can prevent a scammer from doing so in your name.

If you receive an unexpected 1099-G form or any other surprise communications regarding unemployment benefits you haven’t applied for, follow U.S. Department of Labor guidelines for reporting unemployment scams.

Learn more >> Unemployment Scams to Watch Out For

20. Crypto Fraud

Crypto fraud is a type of scam that uses cryptocurrency to trick people out of money.

How this type of fraud happens: Because cryptocurrencies such as Bitcoin and Ether aren’t well-regulated, there can be potential confusion over their value and liquidity (ability to cash out). Cryptos are considered high-risk investment vehicles, and their value can fluctuate wildly. That makes them fertile ground for scammers offering bogus advice or get-rich-quick schemes.

Crypto fraud can also happen when a scammer asks you to make payment through cryptocurrency. Because crypto payments are hard to trace, losses to crypto fraud can be hard to recover.

How to avoid it: If you’re curious about cryptocurrency as an investment tool, investigate by contacting a trusted financial advisor—not answering an email or text solicitation. And while some merchants accept cryptocurrency as payment, no legitimate businesses require that you pay that way, so turn away if you feel pressured to convert your cash to crypto.

Beware crypto investment schemes that guarantee big gains, and avoid any person you meet through an online dating site who begins touting crypto schemes or pressuring you to get into cryptocurrency.

Learn more >> How to Avoid Cryptocurrency Scams

Frequently Asked Questions

• How Do You Know if You’re a Victim of Identity Theft?

  Signs of identity theft include:

  • Unexplained new accounts or hard inquiries on your credit reports, which can indicate fraudulent efforts to borrow money in your name.
  • Communications from debt collectors or the appearance on your credit report of unexplained accounts in collection.
  • Suspicious transactions on your credit card or checking accounts.
  • Inability to log in to the smartphone apps or web dashboards for your credit cards or financial accounts.
  • Unexplained stoppage or automatic payments on your mortgage, loan or credit accounts, or interruption of billing for those accounts if you pay them by mail.
• What Should You Do if You’re a Victim of Identity Theft?
  1. Report the identity theft. File a report with local law enforcement and with the Federal Trade Commission (FTC) at IdentityTheft.gov (or call 877-438-4338).
  2. Place a fraud alert. You have the right to place a fraud alert on your credit reports instructing credit issuers to verify your identity before processing credit applications made in your name. Activating a fraud alert with any one of the three national credit bureaus triggers notifications to the other two bureaus. You can place a fraud alert by going to the Experian Fraud Alert Center. An initial fraud alert lasts one year; an extended fraud alert will remain on your credit reports for seven years and may require a copy of the police report you made to report the crime.
  3. Consider freezing your credit. You also have the right to freeze and unfreeze your credit report for free at all three credit reporting agencies. A credit freeze must be made with each credit bureau individually and will remain until you cancel or temporarily thaw it.
  4. Loop in your financial institutions. Contact the fraud departments at credit card issuers, banks or credit unions, and other places where you have financial accounts and advise them of your situation.
  5. Look for suspicious activity. Monitor your financial and medical statements for signs of additional criminal activity. You can sign up for free credit monitoring from Experian to be notified of any changes to your credit report.
• How Can You Protect Yourself From Identity Theft?

  While you can’t completely prevent identity theft and fraud, there are actions you can take to protect your identity. Here are some preventive measures you can take:

  • Protect your devices with strong passwords. Create strong passwords that include both lowercase and uppercase letters, numbers and symbols. Also make sure every password is unique.
  • Use a password manager. Using a password manager is a secure way to store your passwords.
  • Review your credit reports. Regularly checking your credit reports for possible signs of fraud, like new inquiries and accounts or unusually high balances, is a good proactive action.
  • Set up bank account alerts. Make sure you activate bank account and credit card alerts so you can monitor transactions for any that may be fraud.
  • Watch out for phishing attempts. Be wary of emails or texts from unknown senders that contain links or files. Don’t click on anything in these messages since they’re likely a phishing attempt.
  • Be cautious about information you share on social media. While social media can be a good way to connect with others, you should be wary of sharing any personal information. Don’t post your birthday, address or any sensitive information that could be misused by fraudsters.

  Learn more >> How to Protect Yourself From Identity Theft

• Should You Sign Up for an Identity Theft Protection Service?

  It may be worth signing up for identity theft protection services if you’re at high risk of identity theft, or if you’re not comfortable monitoring for signs on your own.

  Identity theft protection services can scan for compromised passwords, account numbers and personal information, and alert you to new activity on your credit reports. Keep in mind that these services can help you detect criminal activity, but you’re responsible for following up on it and reporting fraud to law enforcement and the companies with whom you do business.

The Bottom Line

Identity thieves continually adapt to exploit changes in technology and the ways we do business and live our lives online. Protecting your personal information to avoid identity theft and fraud requires constant vigilance.

Stay aware of evolving criminal methods, and consider enrolling in Experian’s identity theft monitoring, which scans the web and alerts you if it finds personal information that’s compromised.