What is Identity Theft?
What is Identity Theft? Identity theft is when someone uses your personal identifying information to commit fraud or theft, for example when an identity thief uses your personal information to illegally open a credit card account in your name.
Identity thieves use your personal information in many ways, including:
- They call your credit card issuer and, pretending to be you, ask to change the mailing address on your credit card account. The imposter then runs up charges on your account. Because your bills are being sent to the new address, it may take some time before you realize there's a problem.
- They open a new credit card account, using your name, date of birth and SSN. When they use the credit card and don't pay the bills, the delinquent account is reported on your credit report.
- They establish phone or wireless service in your name.
- They open a bank account in your name and write bad checks on that account.
- They file for bankruptcy under your name to avoid paying debts they've incurred under your name, or to avoid eviction.
- They counterfeit checks or debit cards, and drain your bank account.
- They buy cars by taking out auto loans in your name.
- They “clone” your card during a legitimate transaction and make fraudulent purchases on your card using your identity. This new technique is now also being used to “steal” ATM and bank cards as well.
Can you completely prevent identity theft from occurring?
Probably not, especially if someone is determined to commit the crime. But you can minimize your risk by managing you personal credit information wisely, cautiously and with heightened diligence and sensitivity.
