A borrowed identity is a form of fraud in which an individual or organization forges, alters, or otherwise misrepresents their identity by using the personal information of someone else who has either given them permission to do so or been taken advantage of without their knowledge. This type of fraud can be used to open bank accounts, obtain loans, file false tax returns and make purchases with other people’s credit cards. Borrowed identities are also used to commit crimes such as identity theft and money laundering.
The process typically begins with obtaining the personal details of another person through phishing scams, data breaches, stolen documents, internet searches or social engineering tactics. Once the necessary information has been obtained it can be used to create a new identity which may include full name, address, date of birth and Social Security number (or equivalent). Additional information may also be needed depending on how sophisticated the fraudster wants their fake profile to look – this could include driver’s license details or even passport numbers.
Create a new identity explains in detail how people use the borrowed identities for fraud.
Once the new identity is created it can then be used for various purposes such as opening bank accounts at multiple financial institutions in order to launder money from criminal activities or purchase goods with someone else’s credit card details. The individual committing the crime will often take extra steps to hide their real identity including setting up virtual private networks (VPN) while browsing online and using cash when making purchases in person.
In some cases criminals use software tools known as ‘spoofers’ which allow them to generate false IP addresses and phone numbers that appear legitimate on caller ID systems so they don’t get caught when making fraudulent purchases over the phone or online. By taking these additional measures criminals are able to remain anonymous while carrying out fraudulent activities under another person’s name – all without leaving any traceable evidence behind that could lead back to them.