What distinguishes true name fraud from account takeover?

True name fraud is primarily characterized by the act of opening new accounts using an individual's personal information without their knowledge or consent. This type of fraud involves the perpetrator utilizing genuine details of the victim, such as their name, social security number, and other identifying information, to establish new lines of credit or accounts, often resulting in financial damage to the victim.

The essence of this distinction lies in the fact that true name fraud revolves around creating entirely new accounts, while account takeover typically involves accessing and misusing existing accounts that belong to the victim. In account takeover scenarios, the fraudster already has access to established accounts and uses that access to conduct fraudulent transactions without the victim’s awareness.

This differentiation helps in understanding the various approaches utilized by fraudsters and is crucial for developing appropriate preventive measures and responses within the realm of financial crime and fraud detection.