Digital identification authentication theft is becoming more prevalent in the United States. Over the last five years, this form of scam has grown by 50% as thieves seek new methods to earn money unlawfully and readily. If you become a target, they can cause you significant money damage as well as jeopardize your image.
Digital identity verification fraud is a practice in which criminals use your social security number and other personal information to open credit accounts or obtain loans in your name.
Criminals use your social security number and other confidential information to establish credit accounts or acquire loans in your name through digital identity verification theft. They may also be able to use this information to establish bank accounts, purchase automobiles, file for government assistance, and do other things.
The data they require can come from big businesses like Equifax or Anthem Health Insurance (which was recently purchased by Cigna), or from smaller ones like New York City’s Taxi & Limousine Commission, which revealed over 12 million driver’s permits in 2018. This means that anyone with an online presence, particularly those who use the same login across multiple sites, is susceptible to having their identity taken if they don’t take precautions against digital scammers who want nothing more than access to their money and personal affairs!
What are the costs of digital identity verification fraud?
The expenses of digital identification authentication deception can be divided into three categories:
- Costs of money: These include costs connected with company harm, such as money processing and service provider fees. Fines imposed by authorities or government organizations are also included (for example, if your company is found guilty of violating anti-money laundering laws).
- Costs of reputation: A leak will harm your brand’s image among current and prospective consumers equally, and this can have a long-term impact on future sales development, even if it does not affect income figures instantly.
- Time spent coping with aftermath/recovery attempts costs: If you are the victim of a breach like this one or another type of fraud scheme that results in stolen funds being transferred away from your account(s), you will most likely spend some time investigating what happened and recovering lost funds—and these activities consume valuable resources that could otherwise be used for productive purposes like growing revenue or increasing profitability!
How do criminals commit digital identity verification fraud?
Digital identification authentication deception can be committed in a variety of methods. They may establish credit accounts or acquire debts in your name by using your social security number and other confidential details. They may also use your name to conduct other offenses, such as asking for government assistance to which they are ineligible.
Furthermore, thieves will occasionally establish bank accounts using stolen names, making it simpler for them to transfer money by putting cash into those accounts and then removing it later under the identity of another individual (or using check cashing services).
Identity theft can also be used to create a fake credit record, which can make it difficult to acquire financing, establish bank accounts, or even find work. A felon may also apply for insolvency in your name, causing you future financial issues.
What are the warning signs of digital identity verification fraud?
You may have been the victim of digital identity verification fraud if:
- Someone is using your name and personal information to open credit accounts or obtain loans.
- You have received a letter from a collection agency regarding a debt you did not incur.
- Your credit score has dropped significantly overnight.
If any of these warning signs apply to you, it could mean that someone illegally obtained access to some of your personal data, such as your Social Security number, birthday, and address, and used it to commit fraud against banks and other financial institutions in an attempt to steal your identity or gain financial gain.
The best way to avoid becoming a victim is to stay vigilant with your personal information
Staying diligent with your confidential information is the best way to prevent becoming a target.
- Check your credit record on a frequent basis to ensure that it is correct and up to current.
- Keep an eye out for unusual behavior on your bank and credit card accounts, such as payments that don’t seem appropriate or were made without your approval (e.g., if someone steals your wallet).
- Every month, check the state of all of your credit cards to see if any are missing or have been used illegally before they are taken! You can do this at annualcreditreport.com, but make sure no one else has access—that would undermine the point!
- Sign up for warnings from each credit card provider if feasible to receive messages when new accounts are created in their names (this may only be accessible if you’ve already opened an account).
Some individuals also perpetrate tax theft by using digital identification authentication deception. They may acquire your social security number and other confidential information from an internet directory and then submit a false tax return in your name. This can create issues if you are investigated by the IRS or another government body, as detectives will presume the tax documents pertain to you.
While it is critical to secure your confidential information, there are measures you can take to avoid becoming a target of digital identity authentication scam. If you spot any strange behavior on your credit report or bank account records, for example, call the business right away. You should also monitor your credit score on a frequent basis so that if someone does start an account with your information, they can’t rack up expenses without anyone realizing until it’s too late!