Loan Stacking Fraud
Loan stacking fraud occurs when a series of loans is made out to a fake borrower based on information that looks verifiable but is actually fake or fraudulent in nature. Due to the lack of stringency in screening at several online marketplaces for lending, loans are often approved for people who might not be able to pay these back on time. If a series of loans is taken out in someone else’s name by a criminal, the other person might be in a massive debt without any knowledge of having signed up for any of these loans.
Often renowned as part of the reason behind the crash of the housing market and the economy a decade ago, mortgage fraud occurs when a borrower intentionally lies on a mortgage loan application in order to avail a loan or a larger loan than what would have been approved had they not lied. This has taken place quite often in the recent history of the country and amounts to great losses for institutions when the time to repay these loans comes close. It has also been dubbed as one of the silent killers of the economy that was witnessed just a decade ago.
Auto Lending Fraud
When someone does what has been explained as mortgage fraud to buy a car in their name, it can be referred to as auto lending fraud. When a consumer or an auto dealer indulges in applying or accepting incorrect details to verify a car purchase, they are indulging in auto lending fraud. It is often the case that a car dealer wants to offload cars and make their money, due to which they are not as strict when it comes to verifying repayment capacity. This generally happens to small dealers and those who are looking for shortcuts to get a car without being heavily scrutinized. This sort of fraud has become less frequent after the crash of the automobile market recently.
Child and Senior Identity Theft
In 2019, according to the FTC, 20% of Americans (sixty and older) experienced the inconvenience of unfair behavior such as sinthetic identity fraud. As older Americans stop checking their accounts over time, they become prone to identity theft. Child identity theft is also common, though not as much as senior identity scams. Criminals use data of children to open new accounts or apply for benefits. Both these types of crimes occur due to a lack of vigilance when it comes to account monitoring, and can take place just about anywhere and in any business, but is usually observed in smaller businesses.
Medical Identity Theft
According to the Identity Theft Resource Center, in 2019, nearly 37% of the data breaches were related to the medical sector. 77% of this data could have been used in the identity theft process. The consequences of such crimes in the medical sector are therefore very severe. When people use another person’s identity to fund medical services, it is known as medical identity theft. People often are not aware of this until they receive bills that are statements of care provided through government schemes or even privately. This might lead to an enormous bill named to you. You can avoid this by keeping track of all your claims and being vigilant about the information you receive regarding your medical benefits.