Issues ranging from illness to job loss could damage a person’s credit. Unfortunately, most people require access to revolving credit to maintain their households.
If an individual’s credit score is low or they have too much outstanding debt, they may not be able to secure a car loan or open another line of credit. In such cases, people might consider using their family member’s credit to improve their financial circumstances. They could use the personal identifying information of someone they know to open a credit card or buy a financed vehicle. Doing so could potentially constitute identity fraud.
Familiar fraud is a common crime
People typically can only use their own personal identifying information when applying for mortgages or other lines of credit. If they attempt to use someone else’s information, that is a form of identity fraud.
In cases involving a known person, such as a friend, neighbor or family member, using a person’s name and Social Security number to open a credit card, the party that misuses another person’s information could face identity theft charges due to committing familiar fraud.
When the other party is not aware and does not give their consent, the use of their personal identifying information is a fraudulent act. Especially if the party who opens the line of credit defaults or otherwise damages the credit history of the person whose information they used, the situation could lead to criminal charges.
Recognizing when behavior crosses the line from being a creative solution to a fraudulent act can help people avoid common mistakes. Familiar fraud can lead to white-collar criminal charges against a person who seeks credit using another person’s identity.
