How Does Identity Theft Happen?

Recognizing Common Theft Tactics

While the tactics differ and become more sophisticated with each passing year, some common ID theft tactics include:

• Dumpster diving: Be wary of discarding bills or other paper documents with your personal information, as these are  opportunities for people to rummage through to obtain personal data.
• Skimming: Online thieves steal credit/debit card numbers by using a special storage device when processing your card.
• Phishing: Phishing emails often mimic legitimate communication from trusted sources, such as financial institutions, luring individuals into providing sensitive information. These emails may contain fake links or prompt users to enter personal details on fraudulent websites.
• Changing your address: Another tactic is for fraudsters to divert your billing statements to another location by completing a change of address form.
• Social Engineering: Prevalent on social media, fraudsters use psychological manipulation to exploit trust and gather confidential information. Techniques like impersonation, pretexting, and baiting are employed to deceive individuals into revealing sensitive details.
• Malware and Ransomware: Malicious software can be used to infect computers and mobile devices, allowing cybercriminals to access personal information. Ransomware may lock users out of their systems until a ransom is paid, posing a double threat to both data and finances.
• Data Breaches: Large-scale breaches occur when hackers gain unauthorized access to databases containing vast amounts of personal information. This stolen data can then be used for various identity theft purposes, putting individuals at risk.
• Man-in-the-Middle Attacks: In these attacks, cybercriminals intercept communication between two parties, gaining access to sensitive information such as login credentials or financial details. This can occur in public Wi-Fi networks or compromised online connections.
• Account Takeovers: Criminals may gain access to an individual’s online accounts by exploiting weak passwords or using stolen login credentials. Once inside, they can impersonate the account owner and potentially conduct fraudulent activities.
• Credential Stuffing: Cybercriminals use previously leaked usernames and passwords from one platform to gain unauthorized access to other accounts where individuals have reused the same credentials. This tactic capitalizes on the common practice of using identical login information across multiple sites.
• Pre-texting: They use false pretenses to obtain your personal information from financial institutions, telephone companies, and other sources.

Implications of Identity Theft

Upon the compromise of your personal information, perpetrators of identity theft exploit it in various ways: