What is identity theft?
Identity theft or identity fraud occurs when someone uses your personally identifying information, such as your name, Social Security number, your birth date, or credit card number, without your knowledge or permission, to commit fraud or other crimes. The FTC estimates that as many as 9 million Americans have their identities stolen each year. In fact, you or someone you know may have experienced some form of identity theft. The crime takes many forms. Identity thieves may rent an apartment, obtain a credit card, or establish a telephone account in your name. You may not find out about the theft until you review your credit report or a credit card statement and notice charges you didn’t make—or until you’re contacted by a debt collector. Identity theft is serious.
How do thieves get your personal information?
Identity theft starts with the acquisition of your personally identifying information such as your name and Social Security number, credit card numbers, or other financial account information. For identity thieves, this information is as good as gold. Skilled identity thieves may use a variety of methods to get hold of your information, including:
1. Dumpster Diving. They rummage through trash looking for bills or other paper with your personal information on it.
2. Skimming. They steal credit/debit card numbers by using a special storage device when processing your card.
3. Phishing. They pretend to be financial institutions or companies and send spam or pop-up messages to get you to reveal your personal information.
4. Changing Your Address. They divert your billing statements to another location by completing a change of address form.
5. Old-Fashioned Stealing. They steal wallets and purses; mail, including bank and credit card statements; pre-approved credit offers; and new checks or tax information. They steal personnel records, or bribe employees who have access.
6. Pretexting. They use false pretenses to obtain your personal information from financial institutions, telephone companies, and other sources. For more information about pretexting, click here. back to top What do thieves do with a stolen identity?
What do thieves do with the stolen personal information?
Once they have your personal information, identity thieves use it in a variety of ways.
Credit card fraud:
* They may open new credit card accounts in your name. When they use the cards and don’t pay the bills, the delinquent accounts appear on your credit report.
* They may change the billing address on your credit card so that you no longer receive bills, and then run up charges on your account. Because your bills are now sent to a different address, it may be some time before you realize there’s a problem.
Phone or utilities fraud:
* They may open a new phone or wireless account in your name, or run up charges on your existing account. * They may use your name to get utility services like electricity, heating, or cable TV.
Bank/finance fraud:
* They may create counterfeit checks using your name or account number.
* They may open a bank account in your name and write bad checks.
* They may clone your ATM or debit card and make electronic withdrawals your name, draining your accounts.
* They may take out a loan in your name. Government documents fraud: * They may get a driver’s license or official ID card issued in your name but with their picture.
* They may use your name and Social Security number to get government benefits. * They may file a fraudulent tax return using your information.
Other fraud:
* They may get a job using your Social Security number.
* They may rent a house or get medical services using your name.
What consequences do victims suffer?
The victims of stolen identity can suffer a range of consequence from heavy financial losses to landing in jail for crimes committed by the identity thief. It may take a very long time and lot of expense to recover your good name after you discover that your identity has been stolen. The thieves may borrow large amounts of money in your name and destroy your credit. Or they may give your personal information to police during an arrest. If they don’t show up for their court date, a warrant for arrest is issued in your name.
How to protect your identity?
1. Protect of your personal information. Do not carry more than what you need in your wallet. Do not keep your social security card along with your driver’s license.
2. Protect your mail. Lock your mail box. Shred your bills and other documents with personal information. Erase the hard disk before disposing of your computer.
3. Monitor your credit. Sign up for a credit monitoring service.
4. Sign up for credit alerts so when anyone makes a credit inquiry or tries to take out a loan in your name, you get an alert.
5. To cover all bases, sign up for a proactive identity theft protection service that offers a wide range of services including protection guarantees up to $1m in losses.
