In the course of a busy day, you may write a check at the grocery store, charge tickets to a ball game, rent a car, change service providers for your cell phone, or apply for a credit card. While you likely don’t give these every day transactions a second thought, identity thieves do.
What is identity theft?
Identity theft occurs when someone uses your personal identifying information, like your name, Social Security number, or credit card number, without your permission, to commit fraud or other crimes.
Identity theft is a serious crime. People whose identities have been stolen can spend months or years and thousands of dollars cleaning up the mess the thieves have made of a good name and credit record. In the meantime, victims of identity theft may lose job opportunities, be refused for loans, and even get arrested for crimes they didn’t commit.
How do thieves steal an identity?
According to the Federal Trade Commission, skilled identity thieves may use a variety of methods to obtain your personal information, including:
- Dumpster Diving. They rummage through trash looking for bills or other paper with your personal information on it.
- Skimming. They steal credit/debit card numbers by using a special storage device when processing your card through a credit card swipe machine.
- Phishing. They pretend to be financial institutions or companies and send spam or pop-up messages to get you to reveal your personal information.
- Changing Your Address. They divert your billing statements to another location by completing a change of address form.
- 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.
- Pretexting. They use false pretenses to obtain your personal information from financial institutions, telephone companies, and other sources.
What do thieves do with a stolen identity?
Once they have your personal information, identity thieves use it in a variety of ways. 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.
- Change the billing address on your credit card so that you no longer receive bills, and then run up charges on your account.
- Use your name to get utility services like electricity, heating, or cable television.
- Create counterfeit checks using your name or account number.
- Open a bank account in your name and write bad checks.
- Clone your ATM or debit card and make electronic withdrawals in your name, draining your accounts.
- Get a driver's license or official ID card issued in your name but with their picture.
- File a fraudulent tax return using your information.
- 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 can you find out if your identity was stolen?
The best way to find out is to monitor your accounts and bank statements each month, and check your credit report at least once per year from each of the three major credit bureaus. You can request a free credit report at www.annualcreditreport.com. If you check your credit report regularly, you may be able to limit the damage caused by identity theft. Unfortunately, many consumers learn that their identity has been stolen after some damage has already been done.
To find out more about how to protect yourself from becoming a victim of identity theft, visit www.ftc.gov/idtheft.
Source: Federal Trade Commission, www.ftc.gov/idtheft