Different identity theft types can have a wide range of potential problems, and one of the best ways to protect yourself is to be aware of the risks.
Financial ID theft is one of the most common identity theft types. It occurs when someone uses your credit information to make fraudulent purchases or uses your personal information for other financial gain. While there are safeguards for consumers and victims usually get most of their money back, it really is a theft of time. Having the fraudulent accounts removed from your credit history is a long, complicated, and frustrating process. Often, at least some of the incorrect information remains on at least one of your credit reports, and that can affect if you are approved and your credit terms for a long, long time.
Tax fraud ID theft is another of the most popular identity theft types. It occurs when someone uses your personal information to file a fraudulent tax return. No, they are not trying to be nice and do your taxes for you, they falsify the details in order to get a refund. They usually file early in the tax season, so by the time the victim files their real return, the thief has already made off with the refund.
Child ID theft is one of the identity theft types that parents need to be especially vigilant about. Child ID theft occurs when the personal information stolen belongs to a minor. Children are valuable targets to identity thieves because of their clean credit history and because the theft may not be discovered for many years.
Medical ID theft is when a criminal uses another person’s identity to obtain medical care, prescription drugs, or to make insurance claims. It can land the victim with costly medical bills and make it difficult for them to get insurance or claim their benefits.