Understanding Identity Theft

How Identity Theft Occurs

In what many are calling America's fastest growing type of robbery, crooks are working without the usual tools of the trade. Forget guns and ski masks, your name and Social Security number will do the trick, or that blank, pre-approved credit application you tossed in the trash. Even talking on your phone or surfing the Internet can allow someone you may never meet to rob you of the one thing you may have thought safe from attack: your identity.

It may take months before you realize you're a victim of identity theft. But when you get turned down for credit, a car loan, or a mortgage on your dream house because you've got a bad credit rating and you know you've paid your bills, beware: You may be a victim of a stolen identity.

Despite your best efforts, identity thieves can utilize a variety of low- and hi-tech methods to access your data and obtain your personal information.

For example:

• They steal wallets and purses containing your identification and credit and bank cards.
• They steal your mail or complete a "change of address form" to divert your mail to another location.
• They rummage through your trash.
• They fraudulently obtain your credit card report.
• They find personal information in your home or your car.
• They obtain personal information you submit on the Internet.
• They scam you through mail and/or email.

How Identity Thieves Use Your Information

Once identity thieves have obtained your personal information, they can perform a variety of activities without your knowledge.

They may:

• Open a new credit card in your name.
• Open a bank account in your name.
• Establish a phone or wireless service in your name.
• File for bankruptcy under your name to avoid paying debts or to avoid eviction.
• Counterfeit checks or debit cards to access your checking account.
• Obtain bank loans in your name.