Identity theft is not something that is limited to financial losses. It has a much bigger impact on your life. With different types of identity theft scammers use your data to execute crimes, and frauds, avail tax return benefits, and much more.
The worst part is, that it takes so long to detect the scam that by the time the victim realizes, the damage is already done.
The only way to prevent identity theft is to stay alert.
To give you an overview and prevent you from falling into the trap here is the list of common types of identity theft in India, more importantly, guidelines on how you can stay one step ahead of the thieves.
Let’s dive in!
What are Different Types of Identity Theft in India
Financial theft is something you may recover from, but the effects of identity theft could be long-term.
Sometimes such scams cause prolonged damage, leading to years of stress and uncertainty.
Previously, scammers mainly targeted debit or credit card details. However, identity theft has evolved into a much bigger threat in recent years, affecting multiple aspects of life.
Here are some of the most common types of identity theft. Check out the details and learn how you can stay ahead of the scammers.
1. Financial Identity Theft
This is the most common type of identity theft, where scammers make use of your financial data like bank details, credit or debit card details to make unauthorized transactions.
Scammers also misuse the information to open new accounts or take loans in your name.
Now you might be thinking about how scammers can reach your bank or personal information.
Well, with digitization and AI it is not difficult anymore.
Scammers steal your information either by sending your phishing email, and messages or calling you impersonating themselves as bank officials.
Most of the time, the victim does not realize it until he or she comes across some bigger consequences.
To prevent identity theft, it is therefore important to:
- Stay active & alert
- Keep checking your bank & financial details
- Avoid clicking on any unknown links
- Do not share any information and OTPs on call
2. Medical Identity Theft
A medical identity that includes your insurance policy can also be misused by scammers.
Wondering how?
Just think of the insurance benefit that you can claim in case of any mishappening.
Now these scammers steal your policy documents and details and use them to get treatments, prescriptions, or medical services, leaving you with hefty bills and incorrect medical records.
Scammers can steal your information either by hacking hospital data or stealing insurance cards.
To protect yourself:
- Keep an eye on medical statements
- Verify charges on health insurance
- Never share your insurance details with anyone unless necessary.
3. Tax Identity Theft
Now this is something that scammers mostly wait for.
They steal your data & file fake tax returns before you and steal your return even before you realize what happened.
Now as a consequence of the ITR refund scam you don’t only have to face financial loss but also legal penalties by the Income Tax Department who consider you responsible for availing return benefits twice.
This type of theft increases in the tax season when scammers send phishing emails and reach out to you via other ways just to steal your information and use it to avail tax return benefits.
No doubt the scammers use sophisticated methods that sometimes are difficult to identify in the first instance but here are ways by which you can protect yourself:
- File your tax early.
- Use IRS-approved tax preparers.
- Sign up for identity protection services offered by the IRS.
4. Criminal Identity Theft
Identity theft can have far-reaching consequences beyond financial loss.
Scammers don’t just steal your money—they misuse your identity for far worse crimes. By gaining access to your data, they commit fraud, engage in illegal activities, and even manipulate tax benefits in your name.
The real nightmare begins when your identity gets linked to crimes you had no part in.
Now in such cases proving your innocence can become extremely difficult.
Hence it becomes even more important to prevent yourself from such scams. Here is how you can do that:
- Check your background reports.
- Secure your documents
- Report any stolen IDs immediately.
5. Employment Identity Theft
Unemployment is on peak and ofcourse for getting good job one must have a clean background. If you have that you are the lucky one, but till the time your identity gets in the hands of fraudsters.
To avail of jobs, fraudsters use your identity to get jobs, leaving you with a mess to clean up, unpaid taxes, a bad work record, or even legal trouble.
This type of identity theft usually happens when a scammer reaches your SSN or uses your credentials to post fake resumes.
To protect yourself from the scam:
- Check your social security work history
- Monitor tax filing
- Avoid applying or accepting for an unknown job
How to Report Identity Theft?
One must always be careful to prevent oneself from identity theft, however in case you have fallen victim to the same, then immediate and informed action can make all the difference.
Register with us and get access to experts who understand the situation and will guide you with a personalized approach to recover your losses and protect your future.
Your recovery starts here — take the first step today.
Conclusion
Identity theft is real, and it can happen to anyone.
But with the right precautions, you can stay one step ahead of scammers. Have you or someone you know ever faced identity theft?
If yes, then fill in your details in the form below and our team will assist you in reporting the complaint to the respective authorities.
