Financial Crime World

Identity Theft and Financial Fraud: A Growing Concern in the Finance Sector

The finance sector is witnessing a new trend in criminal activity in the digital age - identity theft and financial fraud. According to the Bureau of Justice Statistics (BJS), identity theft cases have been on the rise in recent years.

What is Identity Theft and Financial Fraud?

  • Identity theft: Unlawful acquisition and use of another person’s personal data for financial gain.
  • Financial fraud: Deliberate deception or misrepresentation of truth to obtain financial benefit.

Impact of Identity Theft and Financial Fraud

Victims of identity theft and financial fraud can face:

  • Emotional distress
  • Financial losses
  • Damage to credit history
  • FBI’s top consumer complaint in 2020
  • Approximately 13% of households experienced identity theft in 2019 (BJS)

Forms of Identity Theft and Financial Fraud

Identity Theft

  • Phishing scams & emails
  • Skimming devices
  • Online account hacking

Financial Fraud

  • Credit card fraud
  • Check fraud
  • Fictitious financial institutions

Preventing Identity Theft and Financial Fraud

Individuals

  • Monitor financial accounts
  • Use strong, complex passwords
  • Refrain from sharing personal information

Financial Institutions

  • Encryption
  • Multi-factor authentication
  • Fraud monitoring tools

Stay Informed and Safeguard Yourself

By staying informed and taking appropriate steps to protect personal information, consumers can help safeguard against identity theft and financial fraud.

For more information, visit the Bureau of Justice Statistics website.