What’s the difference between identity fraud and identity theft? Well, it’s subtle, so much so that it’s easy to use them nearly interchangeably. While both can take a bite out of your wallet, they are different—and knowing the differences can help you know understand what’s at stake.
Let’s start with an overview and a few examples of each.
Identity fraud is …
When someone steals or misuses your personal information to exploit an account or accounts you already have.
Examples:
A criminal gets a hold of your debit card information from a data breach and makes purchases with it against your bank account.
A criminal gains access to one of your accounts via a phishing attack and misuse the funds or otherwise misuses the access associated with that account.
Identity theft is …
When someone uses your personal information to open and abuse new accounts or services in your name—or possibly to impersonate you in other ways.
Examples:
A criminal uses your personal information to open a new line of credit at a retailer under your name and then makes purchases against the line of credit.
A criminal uses your Social Security Number to create a driver’s license with their likeness but your name and personal information.
So there’s that subtle difference we mentioned. Identity fraud involves misuse of an existing account. Identity theft means the theft of your personal information, which is then used to impersonate you in some way, such as opening new accounts in your name.
Above and beyond those definitions and examples, a couple of real-life examples put the differences in perspective as well.
Identity fraud in the news
As for identity fraud, individual cases of fraud don ..
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