Identity theft is an increasingly worrying phenomenon in the digital age. Indeed, easy access to personal data, combined with the evolution of cybercrime techniques, exposes individuals and organisations to serious consequences.
In this article, we will address the issues related to this phenomenon, the preventive measures to adopt, as well as the legal remedies available to victims.
What is identity theft?
Identity theft is also known as stolen identity or identity fraud. It is a type of fraud that involves using another person’s personal information for malicious purposes without their consent.
This may include their name, social security number, banking information or digital identifiers.
This fraud can take many forms, such as:
- creating bank accounts or loans under a false identity;
- purchasing goods online;
- or taking control of social media accounts.
This phenomenon has become increasingly widespread with the advent of technology and social media, which have facilitated the collection and exploitation of personal information.
Identity theft: What are the constituent elements of this offence?
Article 226-4-1 of the French Criminal Code provides that identity theft consists of:
- The act of usurping the identity of a third party or
- Using one or more data items of any nature enabling their identification,
with the aim of disturbing the peace of the victim or others, or damaging their honour or reputation.
Thus, to constitute this offence under French law, three elements must be established:
1. Use of personal information without the owner’s consent (Act of usurpation)
The offence is based on two distinct behaviours:
- Identity theft proper, which consists of impersonating another person.
- The use of data enabling the identification of a third party, without necessarily impersonating them
This may include the name, date of birth, address, banking details, photograph, or any other sensitive data enabling the identification of the victim.
2. Intent to harm or deceive (Fraudulent intent)
The offence requires a specific criminal intent (dol special), meaning a specific intention to cause harm. The perpetrator must have acted:
- Either to disturb the peace of the victim or others.
- Or to damage the honour or reputation of the victim
The perpetrator must have intended to cause harm to the victim or to deceive a third party in order to gain an advantage. This may include, for example, committing fraud, damaging the victim’s reputation, or carrying out illegal acts in their name (e.g. entering into fraudulent contracts).
3. Potential or actual harm
The victim must demonstrate that they have suffered or could suffer harm as a result of the identity theft. This may include financial, legal or emotional impacts.
4. Penalties
Identity theft is punishable by one year of imprisonment and a fine of 15,000 euros. This offence carries the same penalties when committed on a public online communication network. These penalties may be increased in certain circumstances, particularly when the offence is committed by the spouse, partner or civil partner (PACS) of the victim. In such cases, the penalties are increased to two years of imprisonment and a fine of 30,000 euros.
The various issues surrounding identity theft
1. Economic and financial issues (Financial loss)
Victims may find that their identity has been used to take out debts, open bank accounts or make online purchases.
For businesses, this can lead to a decline in turnover due to loss of customer trust, financial penalties and the loss of business partners, etc.
2. Social and psychological issues
Victims may face damage to their reputation due to the use of their identity for illegal acts or defamation.
This can cause stress, anxiety and loss of confidence. Being stripped of one’s identity or being the victim of unjustified accusations can cause profound trauma.
3. Legal and liability issues
Identity theft also raises legal challenges. For example, where a criminal uses a person’s identity to commit an offence, the victim may find themselves unwittingly involved in legal proceedings.
4. Employment and housing issues
Identity thieves may use the victim’s identity to apply for jobs or rent housing, which can cause problems for the victim when they try to find employment or accommodation.
Common methods of identity theft
Criminals exploit various techniques to collect and use personal data. Being aware of these can help you take precautions in advance.
Among the most common methods are:
- Phishing: the sending of fraudulent emails that encourage victims to share their sensitive information.
- Document theft: identity documents, invoices or bank statements carelessly thrown in the rubbish or stolen from letterboxes.
- Skimming: a technique that involves copying bank card information using devices installed on payment terminals.
- Malware: viruses or spyware installed without the victim’s knowledge to collect information.
- Account hacking: by accessing the victim’s social media accounts or email addresses, cybercriminals can impersonate them.
With the development of artificial intelligence, identity theft is becoming increasingly easy to carry out and increasingly difficult to detect. Here are some recent examples illustrating these sophisticated methods:
1. Voice spoofing (Deep Voice) for financial fraud:
In 2020, a bank manager in the United Arab Emirates fell victim to a scam in which fraudsters used AI-based voice synthesis technology to mimic the voice of a company CEO. They thus convinced the manager to authorise transfers totalling 35 million dollars.
2. AI-enhanced phishing:
Cybercriminals now use AI to create extremely convincing phishing emails and websites. These fraudulent messages, often free of grammatical errors and personalised from data collected online, encourage victims to disclose sensitive information or carry out financial transactions.
3. Creating fake websites using AI:
Fraudsters design fake websites using AI, then send links by email or on social media. These sites can mimic online payment platforms or shops, encouraging victims to enter their banking information, which is then exploited fraudulently.
4. Identity theft via deepfakes:
Deepfakes, which are falsified videos or audio recordings created using AI, allow fraudsters to impersonate trusted individuals. For example, in 2024, a British company was defrauded of 25 million dollars after an employee was convinced, via a deepfake video, that they were speaking to their superior.
5. Using AI to create fake identity documents:
In December 2024, the Spanish national police dismantled a criminal organisation that used AI to generate fake identity documents. These documents were used to open online bank accounts, which then served to launder money from fraud schemes.
What are the preventive measures to limit the risks of identity theft?
To reduce risks, several best practices and protective measures can be implemented by individuals and businesses.
a. For individuals
- Protection of personal data: It is essential not to disclose your sensitive information, such as your social security number, banking details and login credentials, except on secure platforms.
- Use of strong passwords: Passwords should include special characters, numbers and both upper and lower case letters, to make any hacking attempt more difficult.
- Digital vigilance awareness: Avoid clicking on suspicious links and refrain from providing personal information online if you are uncertain about the reliability of the sender.
- Checking bank statements: Regularly monitor your accounts to detect any suspicious transactions.
- Device protection: Install antivirus software and regularly update your operating system to reduce the risk of attacks.
- Safe word: A safe word (or security word) is a word or phrase agreed in advance between two people to authenticate a conversation in case of doubt. Using a safe word in a conversation can be an excellent way to protect against scams related to deepfakes and AI-powered identity theft.
b. For businesses
- Employee awareness: Train employees on the risks associated with cybercrime and best practices for managing personal data.
- Implementing access controls: Restrict access to sensitive information only to employees who need it to perform their duties.
- Conducting security audits: Regularly assess your security systems and address any vulnerabilities.
- Using fraud detection software: These tools can detect suspicious behaviour and alert those responsible in the event of anomalies.
- Client data protection: By adopting encryption practices and complying with data protection regulations (such as the GDPR in Europe), businesses can limit the risks of breaches affecting their clients’ information.
- Safe word: A safe word (or security word) is a word or phrase agreed in advance between two people to authenticate a conversation in case of doubt. Using a safe word in a conversation can be an excellent way to protect against scams related to deepfakes and AI-powered identity theft.
What are the legal remedies for victims of identity theft?
When preventive measures fail, it is important for victims to be aware of the legal remedies available to protect themselves and restore their identity.
1. Filing a complaint with the competent authorities
In France, any person who is a victim of identity theft can file a complaint with the police or the gendarmerie.
The victim must provide as much evidence as possible to facilitate the investigation, such as account statements, suspicious messages or copies of fraudulent transactions.
2. Notifying the relevant financial institution
If the identity theft involves banking operations, the victim must immediately report the fraud to their financial institution in order to minimise the risk of future fraud.
The bank may freeze the account and initiate an investigation to clarify the circumstances of the theft. Generally, the bank is required to reimburse the stolen funds if the victim has not been guilty of gross negligence.
3. Civil action for compensation
Victims may bring legal proceedings to obtain compensation for damages suffered.
In cases of serious moral or financial harm, it is possible to claim damages to compensate for the consequences of identity theft. This process can be lengthy and may require the involvement of a lawyer specialising in banking law.
4. Support from online authorities
In France, the government platform cybermalveillance.gouv.fr provides support and advice to victims of cyberattacks, including identity theft.
Other organisations, such as consumer protection associations, can also provide useful advice and guide victims through the process.
5. Bringing the matter before the courts
For serious harm, legal action may be considered. In France, articles 434-23 and 226-4-1 of the Criminal Code specify the penalties for identity theft offences.
Why is the involvement of a banking law attorney necessary?
For a victim of identity theft, engaging the services of a lawyer specialising in banking law can be decisive in effectively resolving the legal and financial complications associated with this type of fraud. An experienced lawyer can provide precise and tailored advice to defend the victim’s rights and assist them in all necessary steps.
They can also help the victim obtain a rapid refund of the stolen sums, notably by proving that they were not negligent in protecting their data.
Furthermore, in the event of a dispute with the bank or insufficient compensation, the lawyer can intervene to defend the victim’s interests before the competent courts.
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