What is Identity Theft?

Identity theft is the fastest growing crime in America today. The Federal Trade Commission (FTC) estimates that at least 9 million Americans will become victims of identity theft this year. Although you may have heard a lot about identity theft, chances are that the definition of what it really is remains vague to you. Action, involvement, and ongoing education of the risks will minimize your chances of becoming a victim of identity theft.

So, let’s get right to it. What exactly is identity theft? Identity theft is the theft of one’s personal information (name, account numbers, social security number, etc…), which in turn is utilized for illegal activity. The obtained information will allow the thief to assume a fraudulent identity, and gain control of the victim's financial assets or open new accounts with the victim’s social security number.  

Many thieves will obtain personal information by dumpster diving behind residences or businesses where bank statements, credit card bills, or registration forms containing information like social security numbers are usually thrown away. Savvy identity thieves use computers to hack into systems where personal information is kept on file. Doctor’s offices, banks and retail outlets where a majority of customers pay with credit or debit cards are usually targets of hackers. This practice is also sometime referred to as “phishing”. So make sure you are always aware of who has your personal information and what safe guards they have in place for identity theft protection. Paying with cash and shredding all of your personal documents before throwing them away can significantly minimize your risk of becoming a victim of identity theft.

Some identity thieves are in it for the money. But other, more advanced, thieves can use stolen information to create false identities that have been used for illegal immigration, espionage, and terrorism. Especially in today’s world, those are definitely not crimes you want associated with your social security number.

Over the past decade, the issue of identity theft has grown into a serious danger for most, as practically everyone is at substantial risk for identity theft. Due to this inherent danger, consumers should stay attentive regarding their personal information, and stay abreast of identity theft news and information. Remember, the burden of innocence lies mostly on the shoulders of the victim.      
 

How can people steal an identity?

The term “identity theft” refers to the illegal use of another’s identity through the theft and successive use of his or her personal information. Since the assumption of one’s identity is performed under false pretenses, the activity is referred to as identity theft. Basically, on paper the thief becomes you.

Most often, identity theft happens because of the innocence of the identity holder. Due to a lack of precaution, thieves can acquire personal data that allows them to assume your identity with minimal effort. The publication of personal identifiers, such as SSNs and bank account numbers, is essentially asking for future identity theft.

Stealing has been performed for centuries, but has recently been taken to a higher level. A simple wallet theft can give access to a plethora of personal information. Even from such a small acquisition, thieves are given the capability to steal your identity. Identity thieves have also been known to steal mail (credit card bills, pre-approved credit card offers, etc…). So carefully monitor the whereabouts of your wallet, and make sure you aren’t missing any important mail. Also, try to make it a practice to only send outgoing mail from the post office as your bills will remain locked up and protected until they wind up in the possession of the postman.

What do people do with a stolen identity?

After a thief has successfully gained access to your information, he or she becomes capable of many illegal activities. The thief can assume your personal identity, and all that comes with it. He or she can open new credit in your name (including opening new utility accounts or qualifying for mortgages), spend using your existing credit and they can even reopen credit accounts you have recently closed. The options are truly limitless with identity thieves as their crime is constantly growing and expanding. Simply put, the more information they have about you the more damage they can do to you.

Financial and Utility Frauds

How does someone go about opening a new account in your name without your permission? On paper, when they apply for credit, they apply for it in your name and social security number and simply have the bills sent to their address where they remain unpaid. Even though thieves will open an account in your name, you will end up assuming all pending charges. As charges are amassed and lenders become concerned, you will be contacted by collection agencies and told about the activity on your account. Or, in some cases, you will go to apply for a legitimate form of credit only to be turned down due to the negative credit history the thief has created in your name.

With access to your identity, thieves will also have entrance to (and management of) your bank account, gaining access to your funds. In most occasions, they are aware of sources to obtain replica checks and banking cards. This is probably one of the most dangerous forms of the crime as it can leave you with no cash in addition to tons of debt.

Government Documents/Medical Fraud

If thieves having access to all of your financial accounts isn’t enough to worry about, some identity thieves even go as far as having false driver’s licenses and/or social security cards made out in your name. Then, they can genuinely pose as you in any situation. In some cases, thieves have even been able to evade their taxes (deferring them to the real you) or apply for and receive government aide like education grants or subsidized housing. Really savvy thieves (who may be honest enough to actually pay taxes) may even go as far as stealing your children’s social security numbers so they can claim them on their taxes—thus disabling you from being able to do so.

Some thieves have even been known to be admitted to hospitals under false identities do they can have expensive medical procedures performed with no intention of paying for them. Several months later, victims are caught off guard by bills for surgeries and tests they never underwent. This not only creates financial problems, but could potentially create a problem for an honest person applying for health insurance. Victims of identity theft stand the chance of being denied health coverage due to unpaid medial bills or a history of diseases and procedures they never had.  

Never underestimate the abilities of an identity thief. Take every effort to protect yourself and your family. It’s your job to make sure they only you that ever exists is the real you. Remember, we here at IdentityTheft.com have your safety and wellbeing in mind. Make sure you bookmark our site and come back often to access more free resources that will help you protect yourself (and the ones you love) from this ever growing crime.