ATM Card Fraud
ATM cards have better security against fraud since you must use a PIN (or personal identification number). They provide a level of security known as two-factor authentication, which relates to a) something you have, i.e. the card, and b) something you know, i.e. your PIN.
True Name Identity Fraud
The most serious type of financial identity fraud is True Name Identity Fraud where the criminal assumes or co-opts your personal details and masquerades as you!
Checks are paper and can easily be lost, stolen, or counterfeited.
Criminal Identity Fraud
A significant burden of identity fraud can occur when an imposter commits a crime in your name. If the imposter has false identification, they can masquerade as you and commit felony or misdemeanor crimes. They can present false ID in the event the authorities catch them. If the crime is serious, they may go to jail and have their fingerprints taken but if the crime is less serious or if they escape the scene, you may receive a notice to appear in court for violations you are not responsible for. A criminal record can be posted nationwide to your identity and you may not realize this until you apply for a job, apply for credit, or a warrant for your arrest is issued. In some cases, the ability to clear your record is more difficult in criminal fraud verses financial fraud.
Other Types of Identity Fraud
An imposter may obtain employment in your good name. If so, your primary problem rests with the Social Security Department and the Internal Revenue Service which may believe you are underreporting income and evading taxes.
Social Security Fraud
There are a variety of abuses that are conceivable with a fraudulent SSN. A few include: