Identity fraud occurs when a fraudster obtains stolen personal information, like a name, Social Security number, driver's license number, date of birth, address, and/or bank account details, and uses them to impersonate someone and carry out financial fraud. Unlike identity theft, which involves the unauthorized acquisition of this type of personal data, the definition of identity fraud is focused on the deliberate act of misuse of that data for deception and monetary gain.
Use case/ examples of identity fraud
New account fraud: Applying for loans or credit cards using another person's stolen identity information like social security numbers and other government-issued IDs, or a synthetic identity.
Credit card fraud: Making unauthorized purchases or ATM withdrawals with compromised payment card data.
Money laundering: Opening bank accounts using fraudulently obtained identity details or a synthetic identity, for the purpose of laundering money under a clean identity.
Insurance and tax fraud: Filing false insurance claims or tax returns using stolen identity information to obtain fraudulent reimbursements.
