Identity Theft: How It Happens And Avoiding It

You or someone you know may have experienced some form of identity theft.  The US government estimates that up to 9 million Americans have their identities stolen each year (source ftc.com).  The crime takes many forms. Identity thieves may rent an apartment, obtain a credit card, or establish a telephone account in your name. You may not find out about the theft until you see your credit report or credit card or bank statement and notice unauthorized charges—or you get a call from a collection agency.

Frank Abignale the famous reformed thief whose story was told in the Leonardo DiCaprio movie Catch Me If You Can  has offered the following tips on how to avoid identity theft:

1. Don’t give out your Social Security number. It is the key to your credit history, bank accounts, and is the main target of criminals.
2. Monitor your credit report. Containing your SSN, employment history, current and closed bank account numbers, , and your credit score. After supplying your SSN after applying for a  credit card, loan, car rental or anything else, request that your SSN on the application be truncated or completely removed and your credit report be destroyed in front of you or returned once a decision has been made. The business only needs to keep your name and credit score for the record.
   
   
3. Cross-cut shred all bank and credit statements and unsolicited credit card offers before throwing them out. The crosscut shredders cost more than regular shredders but make it more difficult for dumpster diving thieves to reconstruct.
   
   
4. Ask for your name to be put on the Direct Marketing Associations do not call and do not mail lists. Reduce the number of pre-approved credit card offers you receive by contacting the credit reporting bureaus to have your name removed from their marketing lists.
5. Only carry the cards and other identity documents you need for your outing. If you lose your wallet or purse you’ll have less to cancel and less for thieves to use.

How do thieves steal an identity? – Source ftc.com

Identity theft starts with the misuse of your personally identifying information such as your name and Social Security number, credit card numbers, or other financial account information. For identity thieves, this information is as good as gold.

Skilled identity thieves may use a variety of methods to get hold of your information, including:

1. Dumpster Diving. They rummage through trash looking for bills or other paper with your personal information on it.
2. Skimming. They steal credit/debit card numbers by using a special storage device when processing your card.
3. Phishing. They pretend to be financial institutions or companies and send spam or pop-up messages to get you to reveal your personal information.
4. Changing Your Address. They divert your billing statements to another location by completing a change of address form.
   
   
5. Old-Fashioned Stealing. They steal wallets and purses; mail, including bank and credit card statements; pre-approved credit offers; and new checks or tax information. They steal personnel records, or bribe employees who have access.
6. Pretexting. They use false pretenses to obtain your personal information from financial institutions, telephone companies, and other sources.

How can you find out if your identity was stolen?

The best way to find out is to monitor your accounts and bank statements each month, and check your credit report on a regular basis. If you check your credit report regularly, you may be able to limit the damage caused by identity theft. For more information, visit the Detect Identity Theft section of the US Federal Trade Commission web site.

Unfortunately, many consumers learn that their identity has been stolen after some damage has been done.

• You may find out when bill collection agencies contact you for overdue debts you never incurred.
• You may find out when you apply for a mortgage or car loan and learn that problems with your credit history are holding up the loan.
• You may find out when you get something in the mail about an apartment you never rented, a house you never bought, or a job you never held.

For more information on what to do if it’s happened to you see the following link from the US Federal Trade Commission:

http://www.ftc.gov/bcp/edu/microsites/idtheft/consumers/defend.html