What Does The Term Identity Theft Really Mean?

This article will focus on identity theft basics. Identity theft is a growing crime that now goes far beyond mere credit card theft. Most of us may face identity theft at some time in our lives. I’m going to explain the different kinds of identity theft crimes most prevalent now and will reveal emerging identity theft trends.

Identity theft is defined as the deliberate theft of another person’s identity. Typically thieves will steal your driver’s license, social security number, bank account information, passport, and other personal information. Once the identity thief has your information, they can do the following things in your name: commit crimes in your name, open new bank accounts, apply for jobs, join the military, apply for mortgages and car loans, access your bank accounts, enter the United States illegally, etc.

What Makes Identity Theft Different from Financial Fraud or Identity Fraud?

Financial fraud and Identity Fraud (same thing) is increasingly put in the same category as identity theft, but the reality is that financial fraud/identity fraud covers common credit card, check, and debit card fraud. When a criminal uses your credit cards or debit cards, that is financial fraud or identity fraud. Recovering from financial fraud is fairly easy because most creditors don’t hold you liable for fraudulent charges.

The FTC has announced that there were almost 10 million cases of identity theft in 2003 and that identity theft and financial fraud are costing consumers $5,000,000,000.00 per year in losses.

Most identity theft is low tech and the majority involves credit car misuse, check forgery, and using your personal information stolen from your trash cans. 50% of all identity theft cases are done by people that the victim already knows, like: relatives, friends, neighbors, and employee’s.

Most Common Identity Theft Tactics…

Dumpster Diving: Stealing credit card bills and offers, bills, insurance statements from your home or business trash cans is the most common method for stealing your identity. You should shred any document that has your personal information – even junk mail with your name and address on it.

Check Fraud: Stealing checks, printing fake checks, ordering checks in someone elses name, tampering with real checks.

Mail Theft: Identity thieves will steal credit card applications and other sensitive data from your mailbox. Locked mail boxes are suggested.

Internal Theft: People posing as employee’s of credit agencies, loan offices and any other companies that deal with sensitive documents.

Account Redirection: An identity thief can file a simple change of address form with the Post Office and have all your mail go to their mail box.

Data Theft: The theft of your consumer files from colleges, lenders, doctor’s offices, computers, and businesses.

Computer Spyware: Spyware can be installed on your computer without your knowledge and can transmit everything you type on your keyboard (like bank user names and passwords) to the identity thief.

Child Fraud: Identity theft commonly occurs when a relative with bad credit will steal another family members identity with the intention of using their good credit information to open new credit card accounts or acquire loans.

Social Security Fraud: Identity thieves will use fake Social Security Numbers or use the numbers of people that have died to apply for jobs and loans, etc.

Wallet/Purse Snatching: Its important to report a stolen credit card immediately because thieves often have elaborate systems in place to steal your money from bank accounts within minutes after the theft.

Identity Theft Trends…

Phishing: These are emails designed to look like they are from your bank with a message telling you to log in and update your account information immediately. Once you type in your information, it goes immediately to the identity thief. Phishing also happens on the phone too by people pretending to be bank employee’s, etc.

Pharming: Thieves set up fake websites that look very similar to the real website. When you login, your information data is collected by the identity thieves. These websites can be triggered from typing in the wrong url or due to spyware already installed on your computer.

Skimming: Identity thieves will use hand held card readers to collect the information on your credit cards magnetic strip. Skimming is common in restaurants and stores where you have to give your card in order to pay. Once the skimming device is full, these numbers are sold or used to create fake credit cards. Skimming devices can also be used with ATM machines in order to steal your account data and withdraw funds from your bank accounts.

Wireless Hacking: Many people now have wireless internet access in their homes and cell phones. Identity thieves can tap into your wireless connections and steal your personal data if your system isn’t encrypted.

Identity theft is now the fastest growing crime in the United States. You can protect your identity, and your family members identity by subscribing to a good identity theft protection plan.