How Does Identity Theft Occur?

ID theft is on the rise for many years in a row. A study released by the Federal Trade Commission states that more than 8 million people fall victim to financial identity theft every year. In fact, according to the FBI identity theft is the fastest growing crime in the United States!

Financial ID theft occurs when someone uses your identity to:

• Open multiple lines of credit with your stolen SSN. Most retailers offer credit cards and even Visa or Master Card accounts simply by completing a one page credit application that’s based solely on SSN.
• Establish phone, cable, internet and even utility services in your name.
• Apply for car or personal loans in your name.
• Open bank accounts in your name and write bad checks.
• Claim social, medical or unemployment benefits in your name.

Because identity theft doesn’t involve physical objects that disappear (as in a burglary or car theft), it usually goes unnoticed for several months until the unpaid bills and statement hit collection. By then, the damage is significant, both to your bank account as well as to your credit.

Other forms of identity theft may include runaway criminals or illegal immigrants leading a full life as someone else!

How do ID thieves obtain your information
ID thieves obtain your SSN, account numbers, phone and other personal information in many ways. From old fashioned pocket picking to high-tech internet scams. Here are the most common ways to steal your personal information:

• For the most part, ID thieves steal your wallet to gain access to your SSN, drivers’ license number and other information.
• They steal your mail to gain access to your Bank & Credit Card statements.
• They complete a “change of address” form and have your mail redirected to them!
• They send you emails that looks like it’s from your Bank, Credit Card company etc., (but in fact is very far from), requesting you to follow a link and fill personal information for “security” reasons. If you do – you simply give them your personal information yourself!
• They call you identifying as your Bank’s or Credit Card Company’s security officer. They inform you that “someone” has tried to use your account or credit card and ask you to “verify” some personal information. If you do – once again you voluntarily give them your personal information.
• They rummage your trash for discarded personal information.
• People you know (colleagues at work, friends, neighbors and even a family members!) can go thru your private stuff. In fact, friendly fraud is on the rise for many years in a row!

More recent Internet scams include using flaws within trusted websites to secretly redirect the unknowing victims to a falsified replica of a trusted financial organization’s website. Also, corporate database breaches are responsible for a large number of stolen identities cases.

Now that you know how does identity theft occur, learn to protect yourself against ID theft, and what early warning signs you need to look out for.