What is the Difference Between Identity Theft and Identity Fraud?

Identity theft and identity fraud are terms often used interchangeably, but they are different crimes with distinct effects on individuals and businesses. Here are the key differences between the two:

• Identity Theft: This involves stealing an individual's personally identifiable information (PII), such as their social security number, and using that information to create new accounts in the victim's name or to impersonate them in other ways. For example, a hacker using stolen information to apply for jobs or open credit cards in the victim's name would be considered identity theft.
• Identity Fraud: This is the act of committing fraud with the stolen information. Cybercriminals exploit existing accounts or use the stolen information to create false IDs, commit credit card or debit card fraud, take out false loans, or make unauthorized withdrawals. For example, making unauthorized purchases on a victim's credit card would be considered identity fraud.

In summary, identity theft is the action of stealing an individual's PII, while identity fraud involves using that stolen information to commit fraudulent acts. Both crimes can have severe financial and reputational consequences for the victims and businesses involved.

Comparative Table: Identity Theft vs Identity Fraud

The Difference Between Identity Theft and Identity Fraud:

While the terms identity theft and identity fraud are often used interchangeably, they represent two distinct crimes with different effects on businesses and consumers. Identity theft is the action of stealing an individual's personally identifiable information, while identity fraud involves using that stolen information to commit fraudulent transactions. Both are forms of fraud and can have severe consequences for the victim, making it essential to take preventive measures and monitor personal information regularly.