Identity thefts sounds just ever so…terrifying. Like somebody is stealing my soul.
Now “Credit card theft” has been around for 50 years. With today’s computers and globalisation I’m sure it’s a much bigger problem than in , say , 1970.
But it still is basically the same thing, isn’t it?
It’s not the same thing at all.
Credit card theft refers to someone using a stolen credit card to make purchases. Your liability is legally capped at $50. It may be an annoyance, but has no major effect on your life.
Identity theft is literally that. Your identity is used to create a false persona by which scams, thefts, and obligations are created for which you personally are liable. Identity theft is seldom from a credit card number. It involves social security numbers, drivers license information or other personally identifying data. Your credit can be wrecked and you have to prove you are not at fault for major crimes. Even if you do so for one occurrence, you may have to continue to do so forever as that information stays in databases you know nothing about.
It’s new, it’s frightening, and it’s growing. That’s why everybody is making a fuss about it now.
A wide-open verificationless system might provide a fraudster with goods/services/money when provided with only a credit card number.
Most systems these days are configured such that you need additional information aside from the credit card number or the credit card itself. For example, there are various gas stations around Atlanta that require you to key in the zip code of the credit/debit card being used to ‘Pay at the Pump’ before they’ll turn the pump on.
These pieces of additional verification information (PIN, CSV#, Name, Address, Zip Code, Mother’s Maiden Name, ammount of your last payment, etc) mostly fall into the larger ‘Identity Theft’ bucket.
So someone who specializes in Credit Card theft, without also aquiring this other information, is not able to liquify his newly aquired assets nearly as well as his counterpart who steals other personal information as well.
Nope, it’s far more. With enough information, other people can take out credit cards in your name, as well as get medical care, car loans, buy a house (with mortgage), etc. etc. (Here’s just one link).
It’s especially a problem in the 'States, where the Social Security Number is used for many things it really shouldn’t be (identification being the big one), but it happens all over.
Fortunately it’s never occured to me or anyone I know (except on this board, I guess), but cleaning it up can take years.