What is identity theft?

Identity theft occurs when someone uses your personally identifying information, like your name, Social Security number, or credit card number, without your permission, to commit fraud or other crimes.

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. While some identity theft victims can resolve their problems quickly, others spend hundreds of dollars and many days repairing 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.

• 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.

What do thieves do with a stolen identity?

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.

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.

Here are some tips on how to avoid this 21st century crime.

• Buy a cross-cut type shredder (you can purchase cross-cut type shredder very cost effectively for approximately $60 - $70.) Shred all your important papers and especially pre-approved credit applications received in your name and other financial information that provides access to your private information. Don't forget to shred your credit card receipts.

• Be careful of "Dumpster Diving." Make sure that you do not throw anything away that someone could use to become you. Anything with your identifiers must be shredded (cross-cut) before throwing away.

• Be careful at ATM's and using Phone Cards. "Shoulder Surfers" can get your "Pin Number" and get access to your accounts.

• Get all of your checks delivered to your bank - not to your home address.

• Do not put checks in the mail from your home mailbox. Drop them off at a U.S. Mailbox or the U.S. Post Office. Mail theft is common. It's easy to change the name of the recipient on the check with an acid wash.

• When you order new credit cards in the mail, or your previous ones have expired, watch the calendar to make sure that you get the card within the appropriate time. If it is not received by a certain date, call the credit card grantor immediately and find out if the card was sent. Find out if a change of address was filed if you don't receive the card or a billing statement.

• Cancel all credit cards that you do not use or have not used in 6 months. Thieves use these very easily - open credit is a prime target.

• Put passwords on all your accounts and do not use your mother's maiden name. Make up a fictitious word.

• Get a post office box or a locked mailbox, if you possibly can.

• Ask all financial institutions, doctors' offices, etc., what they do with your private information and make sure that they shred it and protect your information. Tell them why.

• Empty your wallet of all extra credit cards and social security numbers, etc. Do not carry any identifiers you do not need. Don't carry your birth certificate, social security card, or passport, unless necessary.

• Memorize social security numbers and passwords.

• When a person calls you at home or at work, and you do not know this person, never give out any of your personal information. If they tell you they are a credit grantor of yours call them back at the number that you know is the true number, and ask for that party to discuss personal information. Provide only information that you believe is absolutely necessary.

• Do not put your social security number on your checks or your credit receipts. If a business requests your social security number, give them an alternate number and tell them why. They do not need that to identify you. If a government agency requests your social security number, there must be a privacy notice accompanying the request.

• Do not put your telephone number on your checks.

• Get credit cards and business cards with your picture on them.

• Do not put your credit card account number on the Internet (unless it is encrypted on a secured site.) Don't put account numbers on the outside of envelopes, or on your checks.

• When you are asked to identify yourself at schools, employers, or any other kind of institutional identification, ask to have an alternative to your social security number. Unfortunately, your health insurance carrier often uses your social security number as your identification number. Try to change that if you can.

• In conjunction with a credit card sale do not put your address, telephone number, or driver's license number on the statement.

• Monitor all your bank statements from every credit card every month. Check to see if there is anything that you do not recognize and call the credit grantor to verify that it is truly yours.

  Order your credit report at least twice a year. Review it carefully. If you see anything that appears fraudulent, immediately put a fraud alert on your reports by calling the numbers below.

  Experian  --  (888) 397-3742
  TransUnion  --  (800) 780-7289
  Equifax  --  (800) 525-6285
   

• Immediately correct all mistakes on your credit reports in writing. Send those letters Return Receipt Requested, and identify the problems item by item with a copy of the credit report back to the credit reporting agency. You should hear from them within 30 days.

• Take your name off all promotional lists. Call the three credit reporting agency numbers to opt out of pre-approved offers.