8 Identity Scams You Should Know To Avoid
First They Steal Your Identity, Then Scam You
Identity theft has become extremely common and it seems like cybercriminals are getting more and more creative by the day. With this threat so prevalent today, it's important to keep ourselves updated. Identity theft can be committed through various methods and it's important to understand all the ways anybody would try to steal your personal information making you more susceptible to scams. These thieves use technology to obtain an individual's personal information. Here are the different types that can impact your finances or harm your loved ones.
1. Criminal Identity Theft Scam
While every type of identity theft scam is a crime, in this one a criminal uses your information when they are dealing with law enforcement. For instance, if a criminal uses your license when they are getting pulled over for overspeeding, this way they never have to show up to court and you are the one who is stuck with all the records. This type can be hard to spot as your finances are not hampered in any way. However, it's important to keep track as because of this a simple pull-over can turn into an arrest.
2. Email Identity Theft Scam
The most common kind of email identity theft scam is when somebody poses as people you already know like your friends, family, or even your colleagues, and tries to extract personal information from you. Some hackers are even getting hold of email IDs and replying to older emails from the same ID and because it's a reply to an older email it's easier to fool an individual with this tactic. Other ways include emails from a governmental institution requesting payment in exchange for the package they are holding on your behalf, as per FOX News.
3. Business Impersonation Scam
While this might come as too simple to fall for, you may be surprised to hear how many scammers find success using this method. Criminals are still using people and other voicemail systems as well as bots to call people, posing as representatives of a particular company or organization. They often spend some time engaging and gaining trust before actually asking for money or sometimes only their confidential information. This is why it's important to verify before giving any information.
4. Social Media Scam
While internet is a boon no doubt, there's no denial in the fact that being connected digitally actually increases your chances of being scammed by 30%. Sadly, most of the information that the scammers need is readily available on the internet. Therefore, simply piecing information together from different sources can make it possible for them to impersonate your identity and pose as you in a dangerous situation. It's important to keep your information secure even on your social media platforms where we normally don't think twice before sharing something from our life.
5. Medical Identity Theft Scam
This is when somebody uses your personal information like your name, your social security number, health insurance, account number, or Medicare number to see a doctor. As per AARP's coverage of an FTC report, between 6,800 in 2017 to 43,000 in 2021 cases were reported when it comes to medical identity theft. The consequences can be as bad as medical debt, and loss of money. Not only that, medical identity theft can also impact your ability to get insurance in the future. Beware of any phony services, prescription purchases, or similar things.
6. Buy Now, Pay Later Scam
BNPL is extremely common in the US and nearly one-tenth of Americans, 8%, have used Buy Now Pay Later (BNPL) credit financing for online purchases in the last year, per Payments Dive. However, this is when fake businesses offer customers the option to buy the item now and be able to pay later. While some of the airlines' and other companies allow this, it's always better to verify as scammers have been using this way to gain access to your account from where they can make unauthorized purchases.
7. Synthetic Identity Theft Scam and Child Identity Fraud Scam
Criminals are also capable of using your personal information to take out loans. This can happen when they have access to your Social Security number and have your general information, like date of birth. Scammers are increasingly targeting children and stealing the information of children to make unauthorized purchases or open accounts. These fraudulent activities are also the most common fraud to go unnoticed for years.
8. Formjacking Scam
Formjacking is when cybercriminals use a website and embed malicious Javascript code. This helps them to hijack the functions of the site and collect user information seamlessly. The intention is purely to steal information often used at checkout. Once the user enters the payment info of their card, the malicious JavaScript code collects the entered information and transfers it to the cyber thieves. The thieves can later use this information to conduct theft or payment card fraud in many ways. If you ever feel that this has happened to you, all you have to do is get in touch with your bank.
