Identity theft has become an alarming problem recently as the world moves towards an online system.

Many organizations, such as governmental agencies, financial institutions, and businesses, have been affected by identity theft. This has led to economic losses for organizations, damaging their credibility and reputation, which is more important in this advanced world.

The bottom line of the business and operational efficiency have been affected a lot due to increased monetary scams. Overall, identity theft has led to serious threats to the systems by damaging the integrity and stability of businesses and firms. In combating these thefts, identity verification is the sole solution in this digital era. 

Affected people and organizations are moving forward toward providers that offer services for identity theft protection. The worth of these services is expected to be $28 billion by the year 2029. In 2024, the reported number of identity thefts increased, and cybersecurity issues have become another concern.

Quick Overview Of Different Categories Of Identity Theft

In this digital world where users still lack awareness of the verification identity process, scammers trying to hijack the systems with different tricks, so different types of identity theft have been discovered: 

Tax identity theft

Fraudsters use social security numbers to file a tax return and steal tax credit, which is a tax identity theft. The user can quickly get the warning signs of these types of theft by identifying if someone has already filed the security social number when an IRS letter has referenced the work, which the user does not do. Digital identity protection PINs with additional security numbers can help protect with this regard by filing the name and entering the six-digit code.

Financial identity theft

It is one of the common ways of identity theft, which is stealing another’s credentials to get credit cards, services, goods, and other related benefits. 

Social security identity theft

If the fraudster acquires the social security number of the user, then it can be utilized to apply for credit cards and loans, but it does not fulfill their financial obligations by not paying the money they owe. Scammers also get benefits of medical, disability and other related ones. 

Synthetic identity theft

Synthetic Identity Theft is a type of theft that is done by using real and fake information about the users. It is used to make fraudulent accounts and make purchases. Synthetic identity theft steals money from credit card companies based on fake identities. 

Criminal identity theft

During an arrest and investigation, it occurs when someone offers law authorities some other user name and address. This is often done by false information like a driver’s license. 

Innovative Approaches For The Protection Of Identity Theft

As the world is evolving and every system is moving towards online, different advanced methods are used for verification to protect from identity theft. Manual and digital identity verification is conducted to authenticate the user using different advanced technologies like AI algorithms and machine learning. But there are different approaches that the users should consider to protect from identity theft in daily life: 

Avoid carrying a social security card

The nine-digit social security number can lead to serious identity thefts if any scammer gets access to it. Instead of keeping it in the wallet, remember it or place it in a safe place like home rather than keeping it with yourself. If the card gets stolen by the thief, he can apply for credits under the user’s name which leads to serious damages like monetary losses.

Stay alert to phishing attacks

In phishing attacks, a cyber thief is always looking for the financial and personal information that helps steal the identity. Phishing Attacks basically happen in the form of text messages and emails, and the main goal of the scammer is to click or open the link by the user.

For example, A person pursuing himself as a trusted person can send you a customized link that will direct you to open a link and ask for personal information like account passwords and card information which is controlled by a scammer. The scammer controls the personal information added by the scammer. 

Once the credentials are submitted, the user’s information is shared with another group of fraudsters. Clicking on the link leads the user to a fake website that asks for passwords, and downloading might affect the device with Malware, which is designed to steal personal credentials. 

Enable device passwords for security

According to 2023 data from Phew Research Center, in the U.S., 16% of mobile phone owners say they don’t use security features to lock their phones such as face recognition, passcodes, and fingerprints. Avoidance of using these features might lead to some serious problems like security breaches and leakage of personal information, which enhance the chances of scams that can be directly related to the users. 

Utilize a password management tool

According to a poll conducted by Google in 2022, about 65% of U.S. adults reuse their previous passwords for different apps on their mobiles. Using the same passwords on mobile phones and laptops puts the user’s credentials at greater risk. Guessing one right password for the account gives access to all other accounts.  A password manager can be used to manage all the credentials using different PINs and codes. 

Use public wi-fi carefully

Verify the encryption before using Wi-Fi in public places. To check the validity of the website, look for the lock sign at the left side of the address bar and double-check while connecting to a public Wi-Fi network. Do not share personal information while using the public network, and try to use a VPN. Moreover, ensure to have an up-to-date system and log out of all accounts after completing the work. 

Conclusion

User identity Authentication plays a vital role in protecting against identity theft. Personal data is stored in the databases of authentic users, which helps prevent personal information breaches and provides security. Institutions should consider identity verification online and in-person for their validity, and users should follow different approaches to protect against identity theft in daily life.