Confused between identity theft and identity fraud? Our in-depth guide defines both, ensuring you understand the distinctions and how to protect yourself against each. Stay informed and secure.

1. Identity Theft vs Identity Fraud
Understanding the Differences

2. What is Identity Theft?
Identity theft involves stealing someone's personal
information, like a social security number, to open fraudulent
bank accounts or conduct illegal activities.
Stolen data is often sold online, causing victims financial and
credit score damage. Recovery is time-consuming,
emphasizing the need for businesses to safeguard
individuals' private information to prevent such harm.
Learn More in Depth Here: Identity Theft vs Identity Fraud

3. Common Identity Theft Methods Used to Steal
Personal Identifying Information (PII)
Card Skimming
Phishing Schemes
Malware Attacks
Fraud with Deep Fakes
Database Attacks Public Network Interference
Credentials Purchased
on the Dark Web
Wallet, Document, and Mail Theft
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4. The Different Types of Identity Theft
Database Attacks
Financial identity theft involves unauthorized
access to personal information for fraudulent
transactions, including credit card data, bank
account details, and social security numbers.
Tax Identity Theft
Tax identity theft entails fraudulently using
someone's details, like Social Security
numbers, to file fake tax returns or unlawfully
claim refunds.
Medical Identity Theft
Medical ID theft happens when someone uses
another's information for illegal medical services,
obtaining prescription drugs, or filing false
medical claims.
Synthetic Identity Theft
Synthetic identity theft forges new deceptive
personas by mixing real and false details,
utilizing valid social security numbers and
forged documents.
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5. What is Identity Fraud?
Identity theft involves stealing personal information, while identity
fraud uses the stolen details for fraudulent activities like
unauthorized account access, creating fake IDs, opening bank
accounts, and making transactions with false information, posing a
threat to financial security and privacy.

6. Common Types of Identity Fraud
Fake IDs
Criminals exploit personal data for fake IDs, sometimes fooling scans.
Identity theft victims face false accusations. Stolen social security
numbers facilitate the creation of synthetic identities.
First-Party Fraud
This happens when a customer intentionally defrauds a financial
institution by taking out a credit line or loan without intending to
pay it back.
Fraud on Credit Cards and Lines of Credit
Fraudsters exploit stolen personal data, establishing new credit lines or
depleting existing ones. Some adopt a "Frankenstein" identity, building a
fake credit history to secure higher spending limits and unsecured loans.

7. Common Types of Identity Fraud
Fraudulent Use of Government Benefits
Pandemic-driven surge: Criminals exploit personal data for government
benefits, causing frequent and costly theft, draining billions from
taxpayers.
Home Title Fraud
Fraudsters seize property titles, gaining control over financial
details, and assume ownership. Leveraging the victim's property
equity, scammers secure substantial loans in the victim's name.
Account Takeover
Unauthorized control of financial accounts happens when scammers alter
login details, excluding the original user. They steal money, disclose data,
and may use fake ATM cards for repeated thefts.

8. Creates fictitious identities by mixing real
and fabricated personal information.
Difference Between Synthetic Identity Fraud and
Traditional Identity Fraud
Synthetic Identity Fraud
Uses someone else’s personal
information without their consent.
Definition
How is it done?
Combines real and fake information to
create entirely new identities.
Uses an individual’s stolen personal
information (e.g., Bank account number,
Social Security, driver’s license).
Traditional Identity Fraud
Financial Impact
Businesses and financial institutions can
come under scrutiny due to fraudulent
account openings, defaults, etc.
People or individuals become victims
through stolen IDs, unauthorized
transactions, fraudulent loans, etc.

9. Secure online practices
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Monitoring financial
statements
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Regularly checking credit
reports
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Safeguarding personal
information
Implementing strong
authentication measures
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Being cautious with
personal information
sharing
Tips For Preventing Identity Theft
Tips For Preventing Identity Fraud

10. +1 (256) 319 3470
Phone number
info@ftxidentity.com
Email
www.ftxidentity.com 146 Rock Hill Drive, Rock Hill, NY 12775
Website Location