When people discuss identity theft, their focus is often on strangers. People talk about scammers who intercept mail, servers at restaurants who retain credit card information and shady online vendors who may gather people’s personal information with fraudulent intentions.
Identity theft involving strangers is a serious issue. Millions of people have struggled to rebuild their finances and credit scores after others have assumed their identity to obtain credit while avoiding payment responsibilities. Those engaged in the collection of private information from other people online or in real life typically know that their conduct is illegal and inappropriate.
However, people who may not actually have criminal intentions could also be at risk of identity theft charges. Some people end up prosecuted for opening lines of credit using the personal information of romantic partners or family members.
Familiar fraud is identity theft
Maybe parents have overextended themselves financially supporting their families. They cannot qualify for lines of credit at all because of their financial history. In their desperation to secure financial flexibility and access to credit, they might apply for loans or credit cards in the name of their child.
After all, they live at the same address and know their child’s personal information. Some people open lines of credit in the names of their aging parents, possibly while serving as their caregivers. Others might use information about romantic partners or even roommates to acquire credit in the name of another person. Experts refer to these situations as familiar fraud, and it is a relatively common form of identity theft.
The problem with such practices is that they limit the financial opportunities of the other person involved. The process of seeking credit in the name of another person also involves making fraudulent misrepresentations to the financial institution offering the credit opportunity.
If the misconduct comes to light, possibly because of a default on the debt or the other party learning they do not qualify for credit when they need it, the situation may lead to criminal prosecution. Identity theft is a serious crime even when it involves someone that the accused party knows, not random strangers.
Those accused of identity theft and other forms of financial fraud are at risk of significant penalties that may include jail time, fines and even orders of restitution. Reviewing a situation that has led to charges with as skilled legal team could lead to an effective defense strategy.