What is ID Theft?
What is ID Theft?
Identity theft is one of the major threats that plague consumers, particularly those who regularly conduct business using electronic means such as credit cards and online payment systems. However, identity theft can also happen to people who do not even use these transaction methods.
Identity theft is a form of fraud that involves getting money or other gains illegally by using someone else’s identity. The victim often suffers major financial consequences as a result of this fraudulent activity.
Identity theft can be committed using several methods. Identity thieves sometimes go through garbage bins to look for credit reports, old bills or any other document that could contain information that can allow an identity thief to do a lot of things, including applying for a credit card or a loan under the victim’s name. The identity thief can then use these benefits to their fullest, while the victim is only made aware of the extent of the damage when it’s already too late. Sometimes identity thieves use public information to pretend to be someone they are not and thereby lure private information out of unsuspecting victims. This crime is called pretexting. Pretexting is illegal.
Governments all around the world have recognized the risk of identity theft and the damage it can pose to their economies, and have thus implemented laws to address this. In the United States, the GrammLeach-Bliley Act of 1999 was installed to prevent companies from misusing customers’ information, while the United Kingdom implemented the Data Protection Act to achieve similar purposes.
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