Identity theft can be a dire situation. More than 40% of Americans have fallen victim to this crime. Usually, a bad actor hacks into your bank account, takes out loans in your name, or opens and maxes out credit cards. But there are more intricate schemes happening that may shock you. Here we’ll take a look at seven schemes that you need to protect yourself against.
1. The Fake Hostage Scam
Have you heard about this scam where someone calls saying that they have a loved one held hostage? One Indiana woman fell for the scam because she heard screaming in the background. The scammers demanded $1,500 be sent to their Venmo or they would shoot her mother. This scam takes many forms and sometimes scammers say that your loved one has been in a terrible accident and they need money for their care. It’s always a good idea to verify the situation before sending any money.
2. Scamming Lovers
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Have you seen the Netflix documentary, The Tinder Swindler? Shimon Hayut is a skilled con artist who posed as a wealthy businessman, making many women fall for him. He would then say that business rivals were threatening his life and he needed credit cards and loans. Of course, he maxed out the credit cards and defaulted on the loans leaving his victims in financial ruin. It’s estimated that he swindled around $10 million from his targets. Hayut’s scam is similar to many romance scams that many individuals fall for every day. If your online lover starts asking for money, it’s time to move on.
3. Re-routing The Mail
Do you get a barrage of emails from companies asking if you want to have your bills sent to you paperlessly? You probably should take them up on online billing because of this scam. Abraham Abdallah was able to reroute mail and packages of more than 200 rich and famous celebrities, including Oprah and Spielberg, just by changing their mailing addresses to fake addresses around New York. He allegedly used web-enabled mobile phones and virtual voicemail services to track packages ordered by his targets and pick up messages from anywhere. Abdallah obtained banking information, social security numbers, and credit card accounts of victims for more than six months. He even tried to transfer $10 million out of Thomas Siebel’s account, founder of Siebel Systems. While mail scams are usually not this grandiose or successful, be careful what you send in the mail to protect yourself from identity theft.
4. Children as Targets of Identity Theft
Have you heard about the story of the mother who posed as her daughter so that she could go back to high school? Wendy Brown stole her daughter’s identity and attended a new high school so that she could be on the cheer team. Only 15 days later, she was sentenced to jail time. While moms don’t often impersonate their children, child identity theft has become a common phenomenon. Usually, scammers use children’s social security numbers to open credit cards, take out loans, or file fake tax returns. Children’s identities are much easier to steal than adults’. If you notice that your child is receiving offers for credit cards or not age-appropriate mail, take a look at their credit report and consider freezing it.
5. Swapping Phone Numbers
Youtuber Jacy Erin’s parents fell victim to identity theft when her mom’s email was hacked. The hackers were able to obtain sensitive information like her phone number and credit card information. They changed her mother’s phone number before putting $40,000 in charges on her credit card. When the credit card company called to confirm the charges, the call went right to the hackers.
6. Insider Job
Philip Cummings pleaded guilty in 2004 to one of the largest identity theft cases in the United States. Cummings worked for Teledata Communications, a company that helped run routine credit score checks for other companies. When Cummings quit his job he also took the passwords of 33,000 customers. He then sold the information to criminals. Through drained bank accounts and credit card charges, it’s estimated that victims of this scheme lost $50-$100 million. While breaches of this kind are historic, data breaches happen every day. If you are notified of a data breach where your information may be affected, be sure to set up a credit monitoring service to protect yourself.
7. PayPal Scheme
Just like Cummings, an IT professional Kenneth Gibson took private information he had access to from his employment. He created software that would create fake PayPal accounts for thousands of people. He then used the PayPal accounts to create new credit accounts. He flew under the radar for a while because he would only transfer small amounts of money, but in total, he stole more than $3.5 million.
Protecting Yourself from Identity Theft
According to recent data from the Federal Trade Commission (FTC), over 1 million cases of identity theft are reported each year. It’s estimated that millions more cases go unreported each year as well. While identity theft is a common crime, there are steps you can take to protect yourself. Always remember to monitor your credit card, bank statements, and credit score. You may also want to set up a monitoring service. With knowledge and the right tools, you can protect your identity from criminals.
Teri Monroe started her career in communications working for local government and nonprofits. Today, she is a freelance finance and lifestyle writer and small business owner. In her spare time, she loves golfing with her husband, taking her dog Milo on long walks, and playing pickleball with friends.
