Types of Identity Thefts and Solution

Identity theft is a serious concern these days. Many people suffer from this crime every year. We have listened to news about frauds and many of them are about identity theft. Fraudsters have become more skilled as a result of technological improvements. In this scenario, the fraudster makes an online transaction under a false name. This allows the fraudster to purchase items online using a fake name and a credit card belonging to someone else.

Identity verification administrations can prevent extortion at their source, saving your organization. We frequently associate identitys theft with account takeover and Master card fraud, but this isn’t the reality. Several types of identitys theft are not limited to financial institutions; in fact, any organization with a web-based presence might fall victim to this fraud; the reason for this is the lack of identity document verification frameworks and advanced security standards. To deal with extortion, it’s critical to first understand it.

Types of Identity Theft

Identity theft is a serious issue and it must be solved to prevent danger. It is important to first understand the types of fraud happening to people. Types of identity theft are discussed following

Synthetic Identity theft

Synthetic identity theft is the latest form of identity theft, in which a component of a person’s unique data is combined with some fake data to create a synthetic identity. These offenders can go undetected for a long time due to the half-breed nature of their data (i.e. legitimate data combined with counterfeit data). Regardless of whether the perpetrators’ synthetic identity deception is detected, criminals leave no trail for them to follow.

Criminals occasionally use synthetic identity theft to demonstrate or persuade someone that they are not the same person as them, but rather someone else. This usually happens when fraudsters try to enter a website from which they have been banned or restricted. They use the synthetic identities to pass themselves off as different residents and get close enough to the location or administration. However, you can never know the intentions of a user who carries a synthetic identity.

Child Identity Theft

A report has shown that many people who become victims of identity theft are children. In the year 2017, 39% of children became victims of identity fraud in comparison to 19% of adults. More shockingly, more than one million children become victims of fraud every year.

With the development of innovation and smart devices, every child is exposed to the use of the internet and mobile phones. As a result, they’re an ideal target for identity thieves. From a rational perspective, no child pays attention to his or her financial history; in fact, a big majority of teenagers do not do so until they are in the market for a vehicle or protection. 

Fraudsters take advantage of this and use children’s personalities to submit false information and go undiscovered for a long time. When parents and children become aware of identity theft, the criminals have effectively moved on to other targets, leaving behind a debt of extensive credit reports. 

Financial Identity Theft

Whenever you hear the phrase “identity theft,” the first thing that comes to mind is credit card accounts and financial balances. Financial identity theft is a type of theft that attacks people’s financial assertions and records. With the increased number of data breaches in the organization, a significant number of clients’ data are compromised each year, costing billions of dollars in losses for both businesses and individuals.

The data taken in these breaches are sold on the black market, where cyber criminals are now ready to represent an individual and do unlawful activities and extortion. Master card data can be utilized by fraudsters to make unapproved and deceitful buys. They might have the option to enroll new records utilizing the people’s taken data now and again.

How To Protect Yourself from Identity Theft

Identity theft is turning out to be more predominant. Cyber 5criminals are acquiring ground in the United States. They’re coming up with new and smart ways of attacking your protection. You may always stay one step ahead of the game by employing some of the preventive steps available to combat various sorts of identitys theft. Some of the ways to protect yourself are

Know Your Customer

While onboarding an end-user, organizations are required to undertake KYC verification. Governments have asked businesses to perform Know Your Customer (KYC), Anti-money laundering (AML), and Customer Due Diligence (CDD) compliance. Organizations must perform these requirements or they will become vulnerable to fraud.  

Identity Verification

Organizations must validate each user who logs on to their platform. Identity verification protects businesses from becoming victims of identity theft.

Organizations have been performing identity verification for years, but the technology has evolved. Fraudsters are employing modern technology to perpetrate their crimes. In today’s world, classic tactics are no longer effective. This is why AI-assisted KYC compliance is beneficial in the fight against fraud.