What is Identity Theft and How to Protect Your Personal Information

Identity Theft occurs when someone uses your personal information, such as your name, Social Security number, or credit card number, without your permission, to commit fraud or other crimes.

The FTC (Federal Trade Commission) estimates that as many as 9 million Americans have their identities stolen each year. 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 a debt collector contacts you.

Identity theft is serious!  While some identity theft victims can resolve their problems quickly, others spend hundreds of dollars and many days, weeks, even months trying to repair the damage to their good name and credit record. Some consumers victimized by identity theft may lose out on job opportunities, or be denied loans for education, housing or cars because of negative information on their credit reports. In rare cases, they may even be arrested for crimes they did not commit.

How do thieves steal an identity?

Identity theft starts with the misuse 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:

•  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.

•  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.

•  Pretensing  – They use false pretenses to obtain your personal information from financial institutions, telephone companies, and other sources.

What can you do to help fight identity theft?

A great deal. Awareness is an effective weapon against many forms identity theft. Be aware of how information is stolen and what you can do to protect yours, monitor your personal information to uncover any problems quickly and know what to do when you suspect your identity has been stolen.

Armed with the knowledge of how to protect yourself and take action, you can make identity thieves’ jobs much more difficult.  You can also help fight identity theft by educating your friends, family, and members of your community. The FTC has a collection of easy-to-use materials to help protect you from Identity Theft crime. Visit http://www.ftc.gov/ for more Consumer Protection information.