How ID Theft Occurs?

Thieves have many methods to steal people’s private information.  Some are quite sophisticated, while others are ridiculously simple.  

1. One of the simplest, but most effective, ways that thieves use to obtain sensitive information: looking through discarded papers. Known as "dumpster diving," this method is obscenely simple but still occurs quite often.  Why?  Because people continue to throw away credit card bills, bank statements, pay stubs, and other documents containing private information like social security numbers, account numbers, and credit card numbers.  
2. Old fashion theft is another oft-used method to steal someone’s personal information.  Whether your pocket has been picked, your purse stolen in a "snatch and grab," or your credit cards robbed in an armed robbery, the result is the same: your drivers license, checks, and/or credit cards in someone else’s hands.    
3. Some thieves may bribe employees or may be employees of a company that has access to your private information.  Credit card processing companies, banks, and insurance claims centers all have people who may handle your information.  
4. Identity thieves may try to gain sensitive information by asking for it.  However, they will ask for it under the guise of a legitimate company.  This is either done over the phone or in an official-looking email.  Often, the email will say that there is a problem with your account and that urgent action is needed.  The email will then ask you to identify yourself by sending your account number, credit card number, or social security number or by entering such information on a web page.  The email and web page are not legitimate and any information you enter or send is saved and used by the thieves or sold to a third party.
5. Sophisticated software is used by thieves seeking to steal information over the internet.  Some spyware programs can track keystrokes or duplicate forms.  Other programs can be used to hack into databases and obtain private information.  
6. Tech-savvy criminals can skirt the security and hack into online retailers and view information.  Most websites have security against this.  You can tell a website’s security status by looking at its URL.  http:// addresses are not secure.  The page that asks you for your credit card information should have an address that begins with https://.  That means that there is security that will keep others from viewing you information.
7. Sometimes, thieves are able to use basic account information to divert your bills and statements to another address.  They will then have access to any private information sent via mail.  
8. Some thieves use a method called skimming.  Skimming occurs when a special device is used to store your credit card information when your card is processed.  
9. Pretexting is another way to gain access and use people’s private information.  It is related to phishing.  Once a thief has access to your personal information, they will call your bank and pretend to be you or someone who you have authorized to act on your behalf.  They will often be successful because they are wielding your personal information, which bank personnel will require for security purposes.