Identity theft and fraud are often used interchangeably to describe the same crime, but there are important differences between the two terms.
What You Need to Know
Fraud occurs when a thief either creates a person who does not exist with fabricated personal information or obtains your personal information to commit crimes. This information is used to set up accounts with lenders, merchants, credit card companies, and financial institutions. These types of crimes may be committed by individuals or a group.
Victims of fraud can include but are not limited to:
- Credit card companies
- Other organizations
Inadvertently, the public becomes victims of fraud, since the lenders, merchants, and other organizations must factor these costs into the price of doing business, raising the prices of goods and services to their customers.
Fraud is often the result of identity theft. Want to learn more about identity theft?