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Identity Theft—What is it?

Identity theft occurs when someone uses your personal or financial information without your permission to commit fraud or other crimes.  In other words, someone becomes you. This is a serious crime that takes many forms, and new techniques are being invented by cons all the time.

Identity theft occurs when someone uses your personal or financial information without your permission to commit fraud or other crimes.  In other words, someone becomes you. This is a serious crime that takes many forms, and new techniques are being invented by cons all the time.

Consumers victimized by identity theft may lose out on job opportunities and be denied housing, loans or cars because of negative and incorrect information on their credit reports.  Identity theft usually starts with the misuse of your personal identifying information such as credit cards, Social Security number, address or banking information.  There are a number of ways thieves steal your information, but you can deter them by being proactive and treating your personal information like you would cash.  Here are just some of the more common ways you can be victimized:

1. Stealing – What do you carry in your wallet?  The most common items are driver’s license, credit cards, passport and Social Security card.  Some of these items are essential to carry on your person, but a Social Security number should be memorized and never carried in your wallet.  People have been mugged by thieves whose sole purpose is to steal your information.  If someone asks for your Social, ask why they need it and how they safe keep your information.

2. Burglary – Leaving valuable information lying around unprotected in your home is an invitation to burglars.  Lock it in a safe or filing cabinet.  Most victims of burglary only notice the television, electronics and jewelry is missing, and don’t think about document fraud until too late.

3. Dumpster Diving – Thieves go through your trash looking for bills or other documents with personal information on it.  Protect your personal bills and unopened junk mail by shredding it.

4. Address Change – A thief can reroute your billing information by filing a change of address form.

5. Phishing – Pretending to be a financial institution or company and sending spam or pop-up messages to intimidate you into revealing personal information.

6. Distraction – You’re standing in a crowded subway station with your laptop in hand.  The person behind you drops a sizeable amount of change and when you set your laptop down to help retrieve the coins ─ your laptop is stolen.

You may limit identity theft damage just by being alert.  Mail you receive could trigger a suspicion such as loans you didn’t apply for or rental property you don’t live in or own.  Monitor your credit accounts and bank statements each month.  Also, check your credit reports on a regular basis for any suspicious activity.  No one said cons and thieves are smart, but they are devious and skilled.  What should you do if your identity is stolen?

• Contact the police immediately.  You may be required to file an identity theft report.

• Check your credit reports (Equifax, Experian and TransUnion).

• Contact all creditors and follow-up in writing.  Expect to hear from them.

• Close any accounts you suspect have been tampered with.

• Place fraud alerts on your credit accounts.  Don’t forget any debit cards.

• File a complaint with the Federal Trade Commission (FTC)

There are many steps you can take to protect yourself from identity theft, but if you are victimized, do everything you can to restore your good name and credit.  Consumer awareness makes an identity thief’s job more difficult.  That’s a good thing.