Identity theft facts for kids

Kids Encyclopedia Facts

This page is about the concept of identity theft. For the 2013 film, see Identity Thief. For the 1953 film, see Stolen Identity. For other uses, see Identity theft (disambiguation).

Example of how identity theft can happen with tax forms.

Identity theft happens when someone steals another person's private personal details to pretend to be them. This is usually done to take money, buy things, or access private services without permission. The personal information taken can include full names, home addresses, dates of birth, passwords, and official ID numbers like Social Security numbers.

When a person's identity is stolen, they can face many serious problems. The thief might use their name to buy expensive items or open new bank accounts. The real person often has to spend a lot of time proving to banks, schools, or the police that they did not do those things. Protecting private data online and in the real world is an important part of digital safety.

Understanding What Identity Theft Means

Identity theft is a type of deception where a fraudster uses another person's identifying data. The term was first created in 1964. Over time, laws around the world have updated how they define this problem. Today, laws in countries like the United States and the United Kingdom clearly state that stealing personal information is a serious crime.

What Counts as Personal Information?

Personally identifiable information (often called PII) is any data that can point directly to a specific individual. Common examples of personal details include:

Full legal names and former names
Home addresses and phone numbers
Dates of birth and places of birth
Government identity numbers, like a Social Security number or passport number
Driver's license numbers and student ID codes
Bank account details and credit card numbers
Secret passwords and PIN codes
Biological markers, such as fingerprints or facial scans

When fraudsters get a few of these key facts, they can sometimes assemble a complete picture of someone's life. This allows them to trick computers and customer service workers into believing they are the real account owner.

Data Breaches and Identity Fraud

A data breach happens when unauthorized people get access to private files stored by companies or organizations. While data breaches happen frequently, not every breach leads directly to identity theft.

Sometimes hackers steal large databases but cannot unlock the scrambled information. Other times, companies detect the breach quickly and warn their customers to change passwords before any damage occurs. However, large data breaches still create big risks for consumers worldwide.

A chart showing how government ID cards can put personal numbers at risk if not protected.

Different Types of Identity Theft

Identity theft comes in many forms depending on how the stolen data is used. Security experts divide identity theft into several major categories.

Financial Identity Theft

Financial identity theft is the most common kind. It happens when a thief uses someone else's details to gain financial benefits.

Taking out loans or applying for new credit cards in another person's name
Buying expensive electronics or clothes online using someone else's account
Emptying out money from a victim's personal bank account
Opening utility bills, such as electricity or internet service, and leaving the bills unpaid

Child Identity Theft

Child identity theft occurs when a minor's clean identity is stolen. Children are frequent targets because their Social Security numbers usually do not have any credit history attached to them.

Because young people do not usually check their credit reports or apply for loans, this type of theft can stay hidden for many years. Many teens only discover that their identity was stolen when they apply for their first job, try to get a driver's license, or register for college loans.

Studies show that thousands of young people face this problem every year. Children in foster care systems can face even greater risks because their official documents are handled by many different offices and agencies. Another online problem is "digital kidnapping," where strangers copy photos of kids from social media and pretend they are their own family.

Synthetic Identity Theft

In synthetic identity theft, thieves do not just steal one complete identity. Instead, they mix real information with fake information to build a brand-new identity.

A thief might combine a real child's Social Security number with a made-up name and a fake address.
They use this mixed identity to slowly build a fake credit history over several years.
Once banks trust the fake identity, the thief borrows large amounts of money and disappears.

Synthetic identity theft can be very hard for computers to spot because it looks like a brand-new person entering the financial system.

Medical Identity Theft

Medical identity theft happens when a person uses someone else's name or health insurance card to receive doctor visits, medical treatments, or hospital stays.

This creates two major dangers:

The real victim can receive huge, unexpected medical bills for care they never had.
The thief's health information can get mixed into the victim's official medical records. If a doctor sees the wrong blood type or incorrect allergies during an emergency, it could lead to dangerous treatments.

Tax-Related Identity Theft

In tax identity theft, a scammer uses a person's authentic name and tax number to submit a false tax form early in the year. The thief asks the government to send a refund check directly to their own account. When the real citizen later files their real paperwork, the tax office rejects it because they believe it has already been filed.

How Thieves Steal Personal Information

Cybercriminals and dishonest individuals use many sneaky tricks to get their hands on private records.

Digital Tricks and Online Scams

Phishing: Fake emails, texts, or direct messages that look like they come from real banks, video games, or schools. They ask you to click a link and "verify" your password.
Malware: Harmful computer programs that secretly watch what you type, such as passwords or credit card numbers, and send the data back to a hacker.
Fake Wi-Fi Networks: Scammers create free public Wi-Fi spots in cafes or airports to spy on the websites people visit.
Social Engineering: Tricking people through friendly conversations into giving away secret information, like family birthdays or pet names often used in passwords.

Physical Methods

Mail Theft: Taking letters directly from unlocked home mailboxes to find bank statements or new credit cards.
Dumpster Diving: Searching through trash cans behind homes and businesses to find discarded papers with private numbers.
Shoulder Surfing: Watching someone type their PIN code at an ATM or looking over their shoulder at a phone screen in public.
Theft of Devices: Stealing unencrypted laptops, smartphones, or flash drives that hold sensitive files.

Protecting Your Personal Information

Every person can take simple, practical steps to protect their digital identity and personal records.

Best Practices for Teen Online Safety

Use strong, unique passwords for every single website and game account. Never use the same password twice.
Turn on two-factor authentication (2FA) whenever possible, which requires a special code sent to your device to log in.
Be careful about how much you share on public social media profiles. Avoid sharing your full birth date, your home address, or your school name.
Never click on strange links sent in unexpected emails or chat messages, even if they seem to come from friends whose accounts might be hacked.
Keep your phone, tablet, and computer operating systems updated with the latest security patches.

Safeguarding Physical Documents

Shred old papers, receipts, and junk mail that show your full name, address, or banking numbers before recycling them.
Keep important documents, like birth certificates and Social Security cards, in a secure lockbox at home rather than carrying them in a backpack.
Check your bank statements and online accounts regularly with a parent to make sure all listed purchases are familiar.

How Organizations and Laws Respond

Governments around the world have passed laws to punish identity thieves and protect citizens' rights.

International Standards

Interpol helps police forces across more than 150 nations track stolen travel documents, such as lost passports, to stop identity thieves from moving between countries using false names.

United States

In the United States, several federal laws protect consumers against identity theft:

The Identity Theft and Assumption Deterrence Act made it a federal crime to knowingly use another person's identification to break the law.
The Federal Trade Commission (FTC) helps track identity theft complaints and teaches the public how to recover from fraud.
All 50 states have passed mandatory data breach notification laws, requiring companies to warn customers whenever their private files are stolen.
People who suspect tax fraud can submit Form 14039 to the IRS to receive a special secret PIN code for all future tax forms.

United Kingdom

In the United Kingdom, data protection laws require companies to keep customer information safe and private. The Theft Act 1968 and modern fraud regulations allow courts to send identity thieves to prison. Organizations like Cifas work with banks and businesses to share fraud warnings and stop fake accounts from opening.

Canada and Australia

In Canada, the Criminal Code includes strict penalties for possessing or using another person's identity information dishonestly. Federal privacy laws (like PIPEDA) tell businesses how they must store and protect personal data.
In Australia, both national and state laws punish deception and identity fraud. Government agencies help citizens replace compromised credentials and repair damaged credit files.

Notable Security Cases

Large data leaks have shown the importance of strong online security:

2017 Equifax security breach: A massive cybersecurity incident where the records of around 147 million people were exposed.
2007 UK child benefit data misplacement: Two computer discs containing personal records for 25 million people were lost in the mail, leading to major improvements in government data security rules.
Frank Abagnale: A famous former fraudster who pretended to be several different professionals before later working to help law enforcement detect financial tricks.