Identity theft: How to protect yourself from impersonation

According to the UK-based Sumsub Identity Fraud Report 2023, India, along with Bangladesh and Pakistan, is among the top ten countries in the Asia-Pacific region most affected by identity fraud committed using deepfake technology.

What is identity theft?

Identity theft is when cybercriminals steal personal information—such as passwords, ID numbers, and financial details—from unassuming people and commit fraudulent activities posing as them. These stolen credentials can be misused for taking loans, making unauthorised online purchases, accessing sensitive medical and financial records, and committing crimes in the victim’s name.

“The history of identity theft dates back centuries, but the digital age has transformed cybercrime. From telephone deception to sophisticated synthetic identities, criminals are now almost untraceable. With deepfake technology and AI-driven scams, identity theft is becoming harder to detect,” said Sagar Vishnoi, co-founder of Future Shift Labs and an AI & cybersecurity expert.

Common types of identity theft

According to Vishnoi, identity theft scams take various forms:

Financial identity theft: Criminals steal bank details or credit card information to withdraw money, make purchases, or open accounts fraudulently.

Medical identity theft: Fraudsters use stolen personal information, like health insurance numbers, to obtain medical services or file fake claims.

Criminal identity theft: Scammers commit crimes using a victim’s identity, leading to wrongful arrests or legal troubles.

Synthetic identity theft: Criminals create fake identities using a combination of real and fabricated information. This can be tricky because the victim’s information might not be fully compromised, but the fraud is still happening under a ‘fake’ version of their identity.

Child identity theft: Since children don’t use their identities for banking, fraud often remains undetected for years, until the child becomes an adult and tries to use their information for the first time, like applying for a bank account or student loan.

Online identity theft: Cybercriminals steal information from social media, emails, or websites to commit fraud.

Biometric, tax, and passport identity theft: Criminals steal unique physical traits (like fingerprints) used to verify identity. It can happen through hacks or malware. The problem is that once stolen, biometric data can’t be changed like passwords, making it a tough thing to recover from.

Tax identity theft is when someone uses personal info (PAN card details) to file a fake tax return and steal a refund. Passport identity theft happens when criminals steal or misuse passport details to pretend to be the victim, often for travel or illegal activity.

Phishing and imposter scams: Scammers trick people into sharing personal data through fake emails, calls, or messages, often impersonating banks or tech companies.

How do cybercriminals operate?

“Cybercriminals are using increasingly sophisticated tactics to steal personal data,” said Vishnoi. According to him, phishing remains one of the most common methods, where scammers send emails or messages that appear to be from legitimate sources, urging victims to share sensitive details like Aadhaar numbers or banking credentials.

“Social media is also a major hotspot for identity theft. Cybercriminals frequently create fake profiles using stolen personal information and exploit these identities for financial fraud or blackmail,” he said.

Vishnoi also noted that in India, a common tactic involves fraudsters posing as bank employees, claiming an account needs Aadhar linking to avoid card blockage—tricking victims into revealing sensitive information. The dark web is increasingly used to steal personal data and fuel larger scams.

How can you spot identity theft scams?

Unexpected requests for personal info: If you get a call, email, or text asking for sensitive details like your bank info out of the blue, be cautious.

Suspicious links or attachments: If you see strange links or attachments in a message or an email, don’t click on them. They could be phishing attempts.

Urgent or threatening messages: Scammers love to create panic, claiming your account will be locked or your card blocked unless you act fast. Double-check with the bank before responding.

Unusual activity on your accounts: If you spot unfamiliar charges or activity on your bank statements or credit reports, don’t ignore them. Report it right away.

Too-good-to-be-true offers: If someone offers you something that seems too good to be true (like a free vacation or big cash prize) but asks for personal details to claim it, it’s probably a scam.

Signs your identity may have been compromised:

• Unauthorised transactions on bank accounts
• Unfamiliar charges on credit cards
• Receiving bills for services you didn’t use
• Contacted by debt collectors for debts you don’t owe
• Unexplained changes in your credit score
• Notifications about accounts you didn’t open

Steps to take immediately:

• Contact your bank/financial institutions: Report potential fraud and freeze or close affected accounts.
• Place a fraud alert with major credit bureaus (TransUnion CIBIL, Experian, Equifax, CRIF High Mark) to prevent further fraud.
• File a First Information Report (FIR) with your local police for documentation and investigation.

Protecting yourself from identity theft: How to stay safe online

To safeguard your personal information, especially on social media, adjust privacy settings to restrict access and set profiles to private. Use strong, unique passwords for each account and consider a password manager for secure storage. Enable two-factor authentication (2FA) for added protection. Be cautious with friend requests and links from unknown sources, as they may be phishing attempts. Regularly monitor your bank statements and credit reports for suspicious activity. Limiting the personal details you share can also help reduce the risk of identity theft.

The Safe Side: As the world evolves, the digital landscape does too, bringing new opportunities—and new risks. Scammers are becoming more sophisticated, exploiting vulnerabilities to their advantage. In our special feature series, we delve into the latest cybercrime trends and provide practical tips to help you stay informed, secure, and vigilant online.