How Has Identity Theft Evolved?

As an identity theft lawyer, it’s imperative to recognize the dynamic nature of identity theft, which has morphed/evolved significantly over the years, posing new challenges for both victims and legal professionals. Let’s review some of the evolution of identity theft, shedding light on the changing faces of this crime, especially in the digital age.

To understand the evolution of identity theft, one must first understand the motives behind the nefarious act. Identity thieves seek various criminal endgames, including financial gain, concealment of their true identity, access to specific services, or even employment opportunities.

In the past, “true name” identity theft was predominant, where the thief used a real person’s information without modification. Traditional preventative measures such as continuous credit monitoring, fraud alerts, and credit freezes might help detect this form of identity theft. However, identity theft goes beyond conventional credit card and loan products.

Medical fraud/medical identity theft, for example, is a non-credit form where thieves use personal information for medical services. Erroneous medical records are challenging to rectify, surpassing the complexities of credit records.

Rental identity theft really took off during the COVID-19 pandemic, as property managers switched to all-online applications. In rental identity theft, the thief rents an apartment in your name (and usually leaves it owing money).

Criminal records identity theft is when the thief may use the victim’s personal information, such as their name, Social Security number, or driver’s license, to carry out these illegal activities or claim to be the victim when the thief is arrested for a crime.

Credit monitoring won’t detect these kinds of identity theft – because the credit reporting agencies do not collect much of this information.

Identity Theft in the AI Age

The FBI identified synthetic identity theft as the fastest-growing form of ID theft in January 2020. Synthetic ID theft is where the thief creates a brand new identity using no “real” information or where a thief manipulates real information to create a new fake identity. For example, a thief might combine one person’s social security number with a fake name and address, creating a new fake identity.

You might wonder whether synthetic identity theft can impact you – if it involves using new, fake identities instead of simply stealing yours. But it can. Mixing your real information with that of other people, or with entirely fake information, can lead to credit reporting agencies and debt collectors confusing you with others or you being mistakenly identified as the “synthetic” person the thief has created.

Criminals have access to treasure troves of information, including social security numbers, giving them the raw materials needed for synthetic identity theft.