Identity Fraud

By: Owen DeBalko

Explanation

Identity fraud means the fraudulent use of an individual's identifying information to commit crimes, unlawfully establish credit accounts, secure loans, or enter into contracts.

Example• Florida Resident Sentenced for Aggravated Identity Theft

On September 23, 2013, in Orlando, Fla., Abdul Cunningham, of Rockledge, Fla., was sentenced to 144 months in prison, ordered to pay $560,731 in restitution and a money judgment of $560,731. Cunningham pleaded guilty on June 13, 2013 to wire fraud and aggravated identity theft. A co-defendant, Jana Harris-Cunningham, pleaded guilty on June 24, 2013 and is awaiting sentencing. According to court documents, the defendants engaged in a scheme to defraud the United States Treasury by filing fraudulent income tax returns and negotiating fraudulent tax refunds using stolen identities. Cunningham and Harris-Cunningham filed 145 false claims with the IRS for tax years 2010 and 2011. As part of their scheme, both used the stolen identities along with false and fraudulent wage and tax withholding information to prepare fraudulent federal income tax returns. After filing the false returns, Cunningham and Harris-Cunningham accepted and negotiated reloadable debit cards that they knew contained fraudulently obtained income tax refunds.

Tips to Avoid Identity Fraud

• Only Make Purchases On Trusted Sites

• Order Your Credit Report

• Know How To Spot Phishing

• Secure Your Network

Relevant StatisticsIdentity Theft / Fraud Statistics DataAverage number of U.S. identity fraud victims annually 11,571,900Percent of U.S. households that reported some type of identity fraud 7 %Average financial loss per identity theft incident $4,930Total financial loss attributed to identity theft in 2013 $21 billionTotal financial loss attributed to identity theft in 2010 $13.2 billionPercent of Reported Identity Thefts by Type of Fraud Percent

ReportedMisuse of Existing Credit Card 64.1 %Misuse of Other Existing Bank Account 35 %Misuse of Personal Information 14.2 %

Frequently asked questions• What is Identity Theft?

Identity theft or identity fraud (true name fraud) is the taking of the victim’s identity to obtain credit, credit cards from banks and retailers, steal money from the victim’s existing accounts, apply for loans, establish accounts with utility companies, rent an apartment, file bankruptcy or obtain a job using the victim’s name. The Impersonator steals thousands of dollars in the victim’s name without the victim even knowing about it for months or even years. Recently criminals have been using the victim’s identity to commit crimes ranging form traffic infractions to felonies.

• How does the imposter take your identity?It is easy. All that is needed is your social security number, your birth date and other identifying information such as your address and phone number and whatever else they can find out about you. With this information, and a false driver’s license with their own picture, they can begin the crime. They apply in person for instant credit, or through the mail by posing as you. They often provide an address of their own, claiming to have moved. Negligent credit grantors in their rush to issue credit do not verify information or addresses. So once the imposter opens the first account, they use this new account along with the other identifiers to add to their credibility. This facilitates the proliferation of the fraud. Now the thief is well on his/her way to getting rich and ruining your credit and good name.

Citations

• www.Google.com• www.fraud.org• http://www.statisticbrain.com/identity-theft-

fraud-statistics/