Many people may conversely use the terms identity fraud and identity theft to describe these two crimes, which seems as similar to them but arguably there are a few telling differences between them. The lack of financial literacy is one of the major reasons for people to have a precise understanding of a lot of financial aspects and the accompanying lacunae. This also was one of the major causes for the consumers to have acquired a large number of debts which went on to become one of the most raging issues during the recession. All this have also led a number of consumers to opt for low interest debt consolidation to resolve their debts. But in order to keep these crimes at bay one need to know the difference that exist between the two.
Identity theft occurs, when a crook gets an access to your personal details such as the social security number, your credit card account details, driving license or any other information which is private and exclusive. With the help of all these information, the crook can easily open new accounts in your name without a speck of your knowledge and by the time you may actually realize about this malice, a lot of damage may have already been done in respect of your money and credit. In legal terms however, these occurrences are referred to as “true name identity theft “. On the other hand, an identity fraud is used to describe a crime in which a crook ends up conjuring a fake persona along with a list of the personal information which is truly imaginary. A crook can however commit a “true account identity theft” by creating a fake account in your name as well, but the people who are at the receiving end for this reason are usually the merchants and not you, on whose name the account has been created. Thus you have come to know that there are marked differences between these two crimes but if we look at the bigger picture we all are indirect victims of both the crimes which can topple our financial lives in the form of an ugly additive to the already existing financial troubles.
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