10 FTC Fraud and Identity Theft Terms Explained in Plain English

Fraud alerts, breach notices, and FTC consumer warnings often use specialized terms that can slow you down at the worst moment. If you do not know what a synthetic identity fraud or a brushing scheme is, it is harder to tell whether an alert requires immediate action. This glossary explains ten fraud and identity theft terms in plain English, using language from the Federal Trade Commission’s consumer advice pages. Keep it handy for the next time a suspicious message or letter arrives.

Imposter scams and impersonation

An imposter scam is any scheme in which a person pretends to be someone you trust, such as a business, government agency, or familiar contact, to get money or personal information. The FTC reports that scammers impersonate car dealerships: a buyer may show up at the lot and find the dealer has no record of the order or payment. In a car dealer impersonation scam, a fake dealership or spoofed website collects a deposit or full payment for a vehicle that never materializes. Scammers also pretend to be from the Department of Veterans Affairs, offering help with benefit applications for a fee even though applying directly through the VA is free. Veterans benefits scams can arrive as postcards claiming the recipient qualifies for extra monthly benefits through a program that does not exist.

Identity theft and account terms

Synthetic identity fraud involves combining real personal information with made-up details to create a new, fabricated identity. That hybrid identity can then be used to open accounts that may be difficult to trace to a real person. New account fraud is what happens when stolen or synthetic information is used to open credit cards, loans, phone plans, or utility accounts in someone else’s name. The FTC’s consumer advice pages describe an unexpected package as a possible sign of a brushing scheme, in which a scammer sends you a package you did not order so they can post a fake review in your name. The same surprise package can also be a warning that someone has, or is trying to steal, your personal information.

Contact tricks: phishing and QR codes

phishing is an attempt to get you to reveal personal or financial information by making a request look legitimate. In one FTC example, a mailer about a fictional veterans savings program is described as phishing for personal or financial information. QR code scams are a newer contact method: scammers cover a legitimate QR code, for instance on a parking meter, with one of their own. Scanning the fake code can take you to a fraudulent site designed to steal your money, personal information, or both. Before you scan, the FTC advises checking whether the code appears tampered with, covered up, or out of place. If you want to drill these terms until they stick, VocabularyBase offers flashcards and quizzes by word list, including word meanings you can review whenever a new security term appears.

Money and benefit traps

Health insurance scams are common during Medicare and Marketplace Open Enrollment, but they can occur year-round. The FTC warns that scammers and dishonest businesses sometimes pay to appear at the top of search results, so a top result is not a guarantee of legitimacy. Tax debt relief scams involve companies that promise to settle your back taxes for pennies on the dollar before they even look at your tax situation. They may charge service fees without doing anything, leaving you in a worse position with tax authorities. Social media shopping scams use eye-catching ads for heavily discounted items, such as a designer bag at half price, to collect payment for products that may never arrive. The FTC notes that platforms do not always thoroughly vet the ads or the advertisers behind them.

How to use this glossary and report fraud

The next time a fraud alert or breach notice lands in your inbox or mailbox, match the terms to the definitions above before deciding how urgent the situation is. The FTC asks consumers to report scams, identity theft, and bad business practices at ReportFraud.ftc.gov so the agency can act and warn others.