Tom Ruscha Online Security Review, Identity Theft vs. Credit

Online Security Review , Identity Theft vs . Credit Card Theft : What ' s the Difference ?

Living in an increasingly digital world is great for comfort and convenience , but there ' s a downside to greater reach in the digital realm : It creates new avenues for theft and fraud .
" Data theft , for both companies and individuals , is one of the top security concerns for 2017 ," said Garit Boothe , a technology specialist at Frontier Communications . " There ' s a growing threat to personal information security , but a lot of consumers are left in the dark as to how to deal with the effects ."
Yet , despite this growing threat , many people are unfamiliar with the details of credit card fraud and identity theft ; let alone how to handle the aftermath of a breach .
In the face of rising risk , knowing what you ' re up against can help you better prepare for and manage a potential loss . The average person is likely to encounter either credit card theft and identity theft , or both , in his or her lifetime . Let ' s take a closer look at how those two types of information fraud differ , and what you can do to handle the effects of each .
What is credit card theft ?
Credit card theft is a type of identity theft that occurs when someone accesses your credit card account and uses it to make unauthorized purchases . Credit card theft has , unfortunately , become a common crime . According to a 2015 report from the Bureau of Justice Statistics ( BJS ), part of the U . S . Department of Justice , 8.6 million Americans ages 16 or older were victims of credit card fraud in 2014 .
What is identity theft ?
Though the terms " credit card theft " and " identity theft " are often used interchangeably , identity theft refers to a wider — and often much more serious — set of crimes . The Justice Department splits identity theft into three categories .
1 . Fraud or misuse of an existing account is the category into which credit card theft falls . This crime occurs when someone obtains your credit card number or bank-account information , and uses that information to go on a spending spree . Passing bad checks on someone else ' s account also qualifies . This is by far the most common type of identity theft , accounting for 16.4 million of the 17.6 million total victims in 2014 .
2 . Fraud or misuse of a new account occurs when someone uses your personal information to open a new account . This new account could be relatively small , such as a checking account or a new credit card ; it can also be much larger , such as a fraudulent mortgage to buy a house . Roughly 1.1 million victims reported this type of identity theft in 2014 .
3 . Fraud or misuse of personal information covers all other events involving improper use of your personal data , including the use of stolen information to get a job , receive medical care , rent an apartment or provide a false identity to law enforcement . This category accounted for 713,000 of the victims in 2014 .
While dealing with credit card theft isn ' t anyone ' s idea of fun , the recovery process is pretty simple . A few solid federal laws protect consumers from bearing the responsibility of fraudulent charges . No matter how much was stolen , you can be held liable for a maximum of only $ 50 when you report fraud on a credit card account . If you report the fraud within 60 days of learning of it , even that cost may be waived .