Question

How can identity theft be distinguished from identity fraud? Is it true that identity theft leads to identity fraud? Explain with an example of your own.

Answer 1

Identity Theft vs Identity Fraud:

• Identity theft is when someone steals the identity of the individual in order to gain some advantage from the individual's identity without caring about the consequences of the individual's life. Identity theft is one of the most common ways of getting the advantage of using different people identities.
• Identity fraud is when someone creates a fictitious character in order to commit a crime or take advantage of the situation without stealing someone's identity which is the case in identity theft.
• When talking about that identity theft leads to identity fraud yes it is true because ultimately someone's identity is being stolen or we can say that the crime is committed using the identity rather it be the identity of someone real or fictitious it is one and the same.
• Referring to an example, Suppose if someone claims a loan from the bank using fake documents of an individual who does not exist in this world. The bank fails in identifying that it is the fake identity and passes the loan. The individual will run after the loan is passed by picking up the money from the bank.
• It is a kind of identity fraud but identity theft exists too because a crime is committed using the identity of some other people and it comes under identity theft too. Hence, it is clear that ultimately identity theft takes place in all the identity theft cases.

Hence, this is all about how to distinguish between Identity theft and fraud.