9 Most Common Types of Identity Theft and How to Report Them in India?

shot of hacker hands with credit card for stealing money

Identity theft is a serious crime that has become increasingly common in recent years. It occurs when someone steals your personal information and uses it to commit fraud, such as making unauthorised transactions or purchases.

It is important to know its types, signs, preventive measures, and how to report this theft.

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9 Most Common Types of Identity Theft in India

There are nine most common types of identity theft, each bringing its own problems for those affected:

1. Financial Identity Theft

Financial identity theft involves the unauthorised use of a person's financial information, such as credit card details or bank account credentials, for fraudulent transactions. This is the most prevalent form, causing significant financial losses and impacting credit scores.

2. Medical Identity Theft

Medical identity theft occurs when someone uses another person's identity to receive medical services, purchase prescription drugs, or submit false insurance claims. This not only jeopardises the victim's health records but may also lead to improper medical treatments.

3. Criminal Identity Theft

Criminal identity theft happens when someone pretends to be another person to do bad things. When caught for a crime, they use another person's name so that their record is clean. This can lead to unfounded allegations and legal issues for the innocent person whose identity was stolen.

4. Synthetic Identity Theft

Synthetic identity theft is a new and fastest-growing type of identity theft, where a criminal combines real and fake information to create a new identity. This sophisticated approach makes detection challenging, allowing criminals to exploit these synthetic identities for various fraudulent activities.

5. Child Identity Theft

Children are increasingly becoming targets of identity theft due to their clean credit histories. Criminals exploit this by using a child's identity for illegal purposes or to obtain credit, loans, or government benefits, often remaining undetected for extended periods.

6. Online Identity Theft

With the proliferation of digital platforms, online identity theft involves stealing personal information from social media, email, and online banking accounts. Cybercriminals exploit vulnerabilities in security systems to gain unauthorised access.

7. Biometric ID Theft

Advancements in technology have introduced biometric identification, but it also opens avenues for identity theft. Criminals may forge fingerprints, retina scans, facial recognition data or other biometric data to gain unauthorised access. It adds a new layer of complexity to this evolving threat.

8. Tax Identity Theft

Tax identity theft occurs when someone uses another person's identity to file fraudulent tax returns, claiming unwarranted refunds. Victims may face financial losses and complications in resolving their tax affairs.

9. Passport Identity Theft

Stealing and using someone's passport details can lead to serious legal consequences for the victim. Passport identity theft can facilitate illegal immigration, criminal activities, or even terrorism. In some cases, it occurs when someone uses your identity to obtain a passport.

What are the Common Signs of Identity Theft?

keyboard with red key mentioned as scam alert

You can find out if someone is using your identity by recognising these signs:

New Accounts in Your Name: Discovering unfamiliar accounts opened in your name is a red flag for potential identity theft.
Bounced Checks: Instances of bounced checks without a plausible explanation could indicate fraudulent activity, necessitating immediate investigation.
Denial of Credits: Unexpected denial of credit applications, despite a good credit history, may signify that your identity has been compromised.
Unfamiliar Bills: Be vigilant about unexpected bills for services or products you did not acquire. This may indicate fraudulent use of your identity.
Unusual Activity on Online Accounts: If you notice unusual activity on your social media, email, or online banking accounts, it could be a sign of identity theft.
Unknown Credit Charges: If you see charges on your credit card statement that you don’t recognise, it could be a sign of identity theft.
Logging Attempts: If you notice multiple unsuccessful login attempts or receive suspicious emails or messages, someone may be trying to access your accounts.
Transactional Calls: Unexpected calls confirming or inquiring about transactions you did not make should be investigated immediately.

How to Protect Yourself from Identity Theft?

Here are the seven ways to protect yourself from identity theft:

Avoid Oversharing Online: Exercise caution when sharing personal information online. Be selective about the details you provide on social media and other platforms.
Create Strong Passwords: Create strong, unique passwords for each online account and change them regularly. Avoid using easily guessable information, such as birthdays or names.
Be Aware While Using Cards: Shield your PIN while using ATMs or making purchases. Regularly monitor your credit card statements for any suspicious transactions.
Set Fraud Alert: Consider placing a fraud alert on your credit reports. This adds an extra layer of security and ensures that creditors verify your identity before opening new accounts.
Install Antivirus Software: Utilise reputable antivirus software to protect your devices from malware and phishing attempts that could compromise your personal information.
Two-Factor Authentication: Enable two-factor authentication for your online accounts. This boosts security by demanding an additional verification stage.
Don't Use Unsecured Wi-Fi: Avoid using unsecured public Wi-Fi networks for sensitive transactions, as they are more susceptible to hacking.

How to Report Identity Theft in India?

If you suspect that you are a victim of identity theft, the best defence is to act quickly and report the theft. Here are some tips for reporting identity theft:

Contact the Police: You should report the incident to your local police or cyber crime department. Provide detailed information about the identity theft and any evidence you may have.
Register FIR: File a First Information Report (FIR) with the police. This legal document initiates the investigation process and is essential for resolving the matter. You should keep a copy of the FIR for your own records.
Inform Credit Bureaus: Inform credit bureaus in India about identity theft. They can place a credit freeze and assist in rectifying any damage to your credit score and help secure your financial accounts.
Federal Trade Commission: While the Federal Trade Commission (FTC) is based in the United States, it provides valuable resources and guidance on dealing with identity theft. Victims in India can use these resources for additional support.

Understanding the types of identity theft, recognising early signs, and implementing preventive strategies are crucial components of personal security in today's interconnected world. By staying informed, individuals can significantly reduce the risk of falling victim to identity theft and contribute to a safer digital environment.

FAQs on Types of Identity Theft

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What are the 3 most common causes of identity theft?

The three most common causes of identity theft are:

Data breaches
Phishing attacks
Stolen personal information through physical or online means such as theft of documents by hacking devices.

What is the difference between identity theft and identity crime?

Identity theft involves illegally obtaining someone's personal information, while identity crime involves fraud using stolen identities, like money scams or pretending to be someone else.

Who are common victims of identity theft?

Identity thieves often target kids and seniors. Children are attractive targets because they don't have a credit history, while seniors are often singled out because they may not monitor their credit closely and could have difficulty recognising scams.