Types of Identity Theft

One of the main reasons why identity theft rates are so high is that there are many different forms of the crime. Today, identity theft involves much more than someone just pretending to be you in order to open up a credit card. There's a wide range of crimes that identity theft covers and it's important that you know each one of them. You can't prevent identity theft if you don't know the risks, so read about these primary types of the crime and the damage they can cause:

Financial

Probably the most common type of identity theft, financial identity theft covers a broad spectrum of crimes. Typically, financial identity theft entails a criminal using your name to take out a credit card, get a loan, or even apply for cellular phone service. By using a different address than your own, they make it very difficult for you to even find out that you've been a victim to identity theft.

Criminal

Criminal identity theft usually involves someone getting a hold of your driver's license or the personal information required to create a fake version of it. The criminal can then more easily commit crimes or risk being arrested, since they can simply pretend to be you. Should law enforcement have any reason to arrest the person using your identity, you could end up being the one behind bars for crimes they've committed.

Character

Another dangerous type of identity theft is referred to as character identity theft or cloning. In this situation, a criminal essentially assumes your identity to establish another life. Why would someone want to lead their life as you? Often times, they do it because they're wanted criminals or illegal aliens who need a new identity. With your name, they're able to get a job, open up new lines of credit, and even purchase a house. Character identity theft almost always occurs in a different state than where you live, which makes tracking it down all the more difficult.

Medical

One of the most dangerous forms of identity theft is also one of the least talked about - medical identity theft. In most cases of medical identity theft, a criminal assumes your identity in order to receive health care. You could end up getting charged for their hospital stay or medication, and we all know how expensive health care is. Even worse though, a medical identity theft could lead to incorrect information on your medical records. Your life could be at risk if a doctor were to act on that false information records.

Business

Business or commercial identity theft usually refers to situations where a criminal manages to obtain credit cards or checks in the name of a business. With their large credit limits, criminals are often able to run wild with business accounts. Aside from costing the business a substantial amount of money, this crime could lead to a lower business score rating and even it's eventual demise.

For all the terms and more information about identity theft, read the glossary and get to know the terms for your future reference.