Identity Related Loan Fraud

Identity Related Loan Fraud

Identity-related loan fraud is a financial crime. Identity thieves steal personal information in order to take out fraudulent loans. These loans may involve mortgages, student loans, or other types of loans from banks and other financial institutions.

If you are a university or college administrator, involved with K-12 education, or have teenagers of your own, these programs are for you. Contact the NTICAI to learn more.

Many loan agencies require very little information during the application process, which makes it easier for identity thieves to operate. All they need is a Social Security number or a bank account number to take out a loan in someone else’s name. Payday loan procedures allow thieves to get cash in the identity theft victim’s name without providing much in the way of verification.

Criminals also use stolen personal data to tap the equity lines of credit held by homeowners. The recent downturn in the housing industry created an ideal environment for this kind of loan fraud. Thieves are able to drain all equity built up by the homeowner, and in some cases, even sell the home before the homeowner even knows the crime has been committed.

Identity thieves use personal information to take out student loans as well. The development of online college education programs has made things easy for fraudsters. Organized crime rings steal personal information and apply to low-cost online colleges to obtain money from federal student loan programs.