You usually imagine someone stealing your Social Security number or hacking into your email account when you think about identity theft. Unfortunately, it goes far further than that.
Common Fraud Types
Unfortunately, fraud is all too widespread in today’s environment. Americans’ personal information is more vulnerable than ever, from voter fraud to bank account fraud.
Here are the nine types of fraud to be aware of:
- Postal Fraud
- Driver’s License Theft
- Medical Fraud
- Credit and debit card fraud
Fraudulent Bank Account Takeover
- Theft of a Tax Refund
- Voter tampering
- Internet Scam
- Elder Abuse
Knowing the many types of fraud and following these prevention steps will help you secure your identity.
Postal Fraud
Mail fraud is defined as any fraudulent activity that involves the use of postage mail. This could include mailing a letter to try to con someone out of money or personal information, stealing and opening someone else’s mail, or using chain letters to collect money or stuff.
Mail fraud occurs when mail is used at any point during the fraud process.
What you can do to protect yourself from mail fraud
The easiest technique to avoid mail fraud is to double-check a letter before replying to it. If a phone number appears on what appears to be official correspondence, make sure it is the phone number of the company in question and not a forgery.
When mailing a letter containing personal information such as your bank account number or Social Security number, it is best to take it immediately to the post office to avoid it being taken from your mailbox.
Take care not to leave mail in your mailbox for too long! If you know you’ll be gone for an extended period of time, consider temporarily suspending your mail service or asking a neighbor to get it for you until you return.
Driver’s License Theft
A driver’s license is required for many things, including boarding a plane, opening a bank account, and, of course, driving lawfully! It’s no surprise that some people attempt to steal a driver’s license in order to conduct all of these things under a new name—yours.
Someone who has been awarded a driver’s license in your name can severely damage your reputation without your knowledge! Of course, traffic tickets are an issue, but you should be more concerned about someone committing more serious crimes under your name. If the scammer occurs to live in your state, you may have difficulty renewing your license.
How to Guard Against Driver’s License Fraud
If you learn that someone has obtained a false driver’s license in your name, contact your state DMV immediately to get it canceled. You should also keep an eye on your credit record to ensure that the thief isn’t exploiting your information for other sorts of fraud.
Fraud in the Health Care System
When an individual, insurance provider, or medical office misuses insurance information for personal advantage, this is referred to as health care/medical fraud. This can have a significant impact on you if a criminal obtains your health insurance information and exploits it for their own medical care! According to the National Health Care Anti-Fraud Association, healthcare fraud costs businesses tens of billions of dollars each year!
How to Defend Yourself Against Healthcare Fraud
Keep track of all your medical bills, insurance claims, and personal information to avoid this type of fraud. It’s critical to double-check any statements you receive from your health insurance company or doctor’s office. If you find any services mentioned that you did not receive, notify your insurance provider right away.
Credit and debit card fraud
Simply put, when a burglar has access to your debit or credit card number, it is fraudulent behavior. This can occur if the card number or the physical card is stolen.
How to Defend Yourself Against Debit or Credit Card Fraud
I recommend checking your bank account once a week. This way, if you notice any fraudulent charges on your bank or credit card bills, you’ll be able to notify the card issuer immediately away and begin the cleanup procedure.
Make sure no one takes your numbers by carefully guarding your cards. Chip cards are more secure than magnetic strip cards, so if you haven’t already made the transition, now is a good time.
You should also exercise caution while utilizing ATMs outside of your bank. Hackers can sometimes interfere with third-party ATMs using devices known as skimmers, which steal personal information.
Also, never store your credit card information online. Instead, while shopping online, consider using a service like PayPal to avoid entering your debit card number on a third-party website.
Fraudulent Bank Account Takeover
When a thief gains access to your bank account, it is one of the most difficult types of fraud to clear up. This can happen quickly if someone steals a check from your mailbox, obtains your account details through email fraud, or (in severe circumstances) uses malware to acquire access to all of your personal information.
If you don’t act fast, this form of scam can entirely drain your bank account—and you might never get that money back. Keep a watch on your account statements on a regular basis for any transfers you did not allow.
How to Guard Against Bank Account Takeover Fraud
It should go without saying, but never log in to your bank account via insecure Wi-Fi, and always double-check that you’re connecting to your bank’s website rather than a scam site designed to appear like the genuine thing.
Theft of a Tax Refund
During tax season, you’ll hear a lot about how important it is to file your taxes on time. Why? One of the reasons is to avoid tax evasion! This is known as stolen refund fraud, and it occurs when someone else obtains your return after stealing your Social Security number and filing your taxes. When you file your actual return, the IRS rejects it since you’ve “already filed.”
This type of identity theft is more common than you may think—in fact, it’s one of the top frauds the IRS encounters each year.
How to Protect Yourself Against Tax Return Fraud
So, what should a law-abiding taxpayer do? Keep an eye on who and where you give your personal information. Use security software on your PC to be safe. And never carry your Social Security card or anything else with your Social Security number on it, including your W-2! Keep everything in a secure location.
Voter tampering
This received a lot of attention during the 2016 presidential election, but what does it actually mean? Quite a few things! Voter fraud is a broad word that refers to any illegal meddling with the voting process, including things like voting twice, voting under a false identity (such as someone who has died), voting as a felon, and buying or selling votes.
How to Defend Yourself Against Voter Fraud
The thing with this form of fraud is that it’s difficult to protect yourself against it, but it’s also quite unlikely that your identity will be taken for this purpose. If you believe you have been a victim of voter fraud, you should notify the US Department of Justice.
Internet Scams
This is exactly what it sounds like online fraud occurs when someone uses the internet as a tool to defraud someone else. The most prevalent methods are data breaches, email account compromise (EAC), malware, and phishing. Every year, online internet frauds defraud victims of millions of dollars.
How to Guard Against Internet Fraud
You can help keep malware and other identity theft infections at bay by keeping your anti-virus software on your computer and mobile device up to date. When it comes to phishing scams, be wary of any email that requests personal information. Also, always read and re-read links to ensure you’re on the official page and not a fake site.
Elder Abuse
While many of these sorts of fraud can happen to anyone, older individuals are especially vulnerable to fraud because of their age. They are known for being more trusting, good-natured, and kind-hearted, making them more vulnerable to sorts of fraud such as phone scams and wire transfer fraud. Many con artists phone and offer lottery winners, sweepstakes prizes, or even health care services. These fraudulent promises enable them to obtain financial and personal information.
How to Protect Yourself Against Elder Abuse
Elderly folks are also less likely to monitor their bank account details. So it’s too late by the time they figure out what happened to all their money. If you want to give your elderly loved ones peace of mind, have them sign up for an identity theft monitoring program with Zander Insurance. They will assist them in being attentive to any unusual activity on their accounts.
Don’t Become a Fraud Victim!
It can feel like you’re a sitting duck waiting for this form of deception to strike. Instead of being reactive, be proactive!
With identity theft protection from Ramsey’s Trusted provider Zander Insurance, you can protect yourself from numerous typical types of fraud right now!
