Five Types Of ID Theft

As I have spoken to folks about identity theft, I've discovered there is a lot of confusion about what exactly is identity theft.  So in this blog posting, rather than referencing numerous web articles, I want to introduce you to the various types of identity theft.  In the next series of posts, I will discuss each type in more detail, to give you a better perspective on this tsunami called "identity theft" and what you can do to protect yourself. 

Financial ID Theft

      Ask most people to define identity theft, and they will answer "credit card theft" or believe it has something to do with their financial identity.  And certainly financial identity theft is a major and growing type of identity theft.  Thieves find it less risky and more lucrative than other crimes; it has now surpassed drug trafficking as a crime of choice.  But it is only one type of ID theft, and it is perhaps the easiest to detect and correct of all the types.  There are laws, for example, that limit or spell out the consumer's liability of financial ID theft.  You as a consumer have resources available to you now, such as free annual credit reports, fraud alerts, and credit freezes, as well as services to monitor your credit, that can reduce your financial exposure and perhaps thwart attempts to steal your financial identity.

    Often the discovery of a financial ID theft is handled by simply closing out an account and opening up another one.  In most cases, the credit institution won't pursue the thief; it is just less expensive to write off the loss and get you back to where you can use your credit again.  You are left with a false sense of security - the problem seems "handled" and done.  But much like a single cockroach is never really alone, a stolen credit account is often accompanied by other identity issues.  Your discovery of a financial ID theft should just warn you that your nightmare has started.

    As serious as financial ID theft is, the other types of identity theft have, in my opinion, the potential to do you greater harm.  They are harder to detect and correct, and unfortunately, you are guilty until proven innocent.  Generally, the burden of proof is on your shoulders, and we are often ill equipped to defend ourselves and restore our identities.

Social Security ID Theft

    Your Social Security Number should be unique to you.  In this day of computerization, your Social Security Number is the single number that follows you from birth to death.  However, if stolen, it can be used to get a job, open credit, or buy a house.  Stolen Social Security Numbers are bought and sold freely to criminals or illegal aliens - anyone who doesn't have a Social Security Number already or does not want to be traced to their real identity.  It is common for a single Social Security Number to be sold a hundred times and used simultaneously in multiple states for job purposes.   This can cause major problems for you at tax time!

    Children are especially vulnerable to this crime, because they usually don't file taxes or in other ways need to access their Social Security information until they apply for a job, go to college, or get a drivers license.  Since Social Security Numbers are issued at birth now, a thief may get 16-18 years of free use of a child's Social Security Number before discovery.

Drivers License ID Theft

    Like your Social Security Number, your drivers license, which is as close to a national identification card as we have, can be stolen and altered, then given out for traffic violations or otherwise misused in place of the thief's real ID.  You might, for example, use your drivers license as identification to board a plane in your state, but could be detained at the gate when you try to return, because there is a warrant for your arrest in the other state for failing show up at court for a traffic violation generated by the holder of your drivers license.  You did not know about the court appearance because you did not commit the crime, but nevertheless a warrant is out for your arrest.

Medical ID Theft

    Along with your actual medical card, your Social security Number and drivers license can be used to acquire medical services or drugs illegally in your name, perhaps leaving you with a major bill or draining you of lifetime medical benefits.  Even worse, your medical information can get mixed together with the thief's medical information, which can cause a potentially fatal situation.  In my opinion, this is the most dangerous form of identity theft, just for this reason.

Character or Criminal ID Theft

      Character ID theft is also called Criminal ID theft, because it involves using your ID in the process of carrying out a crime.  For example, a person may be arrested for breaking and entering, or for prostitution, and the criminal gives your ID instead of his or her own.  You could wake up some day to discover your name plastered on the headlines of your local newspaper, or police might show up at your door to arrest you for skipping bail.

In Summary

    Proverbs 22:1 says, "A good name is more desirable than great riches."  Your identity really is your most valuable asset.  Once that good name is tarnished by an identity thief, it is difficult to regain it.

    Your identity, in any of the forms mentioned above, can be sold and misused countless times.  Hence my example of the multiplying cockroach.  And as you can see, the victim of identity theft often faces legal problems, along with the identity theft itself.  Many people still think they can protect themselves by being careful, and while any effort to guard your identity is better than no effort, you are really just "rolling the dice".  Your personal information is likely already exposed, and you may already be a victim; you just haven't discovered it yet.  Based on this, plus the complexity of identity restoration, it is my opinion that everyone these days needs a wall of protection to supplement their own due diligence - constant credit monitoring, true ID restoration assistance, and legal counsel.  There are a multitude of affordable service companies that provide one or more of these elements; at least one provides all three.  If you need help with sorting through the options, contact me by email.