What are the most common identity fraud schemes hitting Americans in 2023?
Identity fraud losses totaled $43 billion in 2022, affecting 40 million adults nationwide. While the list of identity fraud schemes grows longer every day, there are five common schemes you should know: credit card fraud, bank fraud, tax fraud, medical identity theft, and home title fraud. To detect these before they happen, there are a few red flags you’ll want to be on the lookout for.
What are the top identity fraud schemes of 2023?
Credit Card Fraud
To detect credit card fraud, you’ll want to keep a watchful eye on your account activity. If you spot a transaction you didn’t make, happen to lose your credit card or it’s confiscated, report it immediately.
Also, regularly check your credit. CreditKarma, NerdWallet, Mint and Credit Sesame are all free tools to help monitor your credit.
Additionally, once a year, you’re entitled to a free report from each of the three main credit bureaus (Experian, Equifax and TransUnion). AnnualCreditReport.com is the only website authorized by the federal government to issue free, annual credit reports from the three bureaus.
Like credit card fraud, to detect bank fraud, you’ll want to regularly monitor your account activity for suspicious transactions or unauthorized access.
If you use a mobile banking app, make sure to enable two-factor authentication.
Never open the app while connected to a public Wi-Fi network or with an open Bluetooth connection.
While trickier than credit and bank fraud, tax fraud may be detected if you stay on the lookout for any unfamiliar tax documents, forms or transcripts in your physical or digital mailboxes.
Also, be aware of scammers calling you pretending to be the IRS. This should immediately raise a red flag.
Medical Identity Theft
In 2021 alone, there were 60,000 fraud reports related to healthcare. And that only includes the ones reported to the FTC. Medical identity theft is on the rise, but you can mitigate your risk by keeping an eye on your medical bills and always reviewing your Explanation of Benefits statements to make sure they’re on track with the care you received. If not, it’s a telltale sign that fraud is being perpetrated against you.
If you’re denied insurance coverage for a pre-existing condition you don’t have or get a notice that you’ve reached your benefits limit when you know it’s impossible, you have cause for concern.
Home Title Fraud
Home title fraud occurs when identity thieves fool your mortgage loan servicer into thinking your home title belongs to them. This type of fraud has key warning signs worth mentioning. For starters, monitor all information related to your property through your county’s deeds office. Sometimes free and sometimes not, it’s worth it if you spot something you don’t recognize early.
Also, if you have a second home that you don’t visit frequently, have someone routinely check on your house for any sale signs or unauthorized activity.
There are several other types of fraud to familiarize yourself with, but with a little research and a vigilant eye on your personal asset activity, you can successfully detect fraud before it happens.
This is the second article of a series dedicated to navigating the identity fraud landscape through effective detection, prevention and correction efforts. View the other article here:
Next up in the third article, we’ll dive into the key methods to prevent identity fraud from happening to you.
How Can Schneider Downs Help?
The Schneider Downs IT Risk Advisory Team can advise you on how to strengthen your organization’s risk management position to ensure optimal asset protection, now and in the future. Feel free to reach out to our team directly at [email protected].
About Schneider Downs IT Risk Advisory
Schneider Downs’ team of experienced risk advisory professionals focuses on collaborating with your organization to identify and effectively mitigate risks. Our goal is to understand not only the risks related to potential loss to the organization but to drive solutions that add value to your organization and advise on opportunities to ensure minimal disruption to your business.
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