What is Identity Theft and How Does It Occur?

 

This article will define what identity theft is, the seriousness of it, and provide a few examples of how identity thieves steal personal information. You may be surprised, or even shocked, at a couple of them.
Identity theft occurs when someone uses your personally identifying information, such as your name, Social Security number, or credit card number, without your permission. They may commit crimes or fraud using your information.
According to the Federal Trade Commission, as many as 9 million Americans are victims of identity theft each year. With these kinds of numbers, the odds are growing that you know someone who either has had or will have their identity stolen.
Identity thieves use stolen identities for many reasons. Some examples are to get credit cards, obtain medical care, obtain employment as a legal citizen, or commit crimes. If your identity is stolen, it could be several months or even years before you are aware of it.
An identity theft is a serious event. Victims of identity theft will spend an average of 400 hours restoring their identities. Couple that with attorneys’ fees, court costs, time lost from work, and the overall frustration and feeling of helplessness, and it is easy to see how serious and costly this can be. Some victims may lose out on job opportunities, or be denied loans for education, housing or cars because of negative information on their credit reports. There have also been cases where someone is arrested for crimes they did not commit.

Identity theft starts with the misuse of your personal information. Examples of personal information identity thieves steal are your name and Social Security number, credit card numbers, financial account information, mother’s maiden name (for account “security” reasons), and driver’s license numbers.
Some examples of the methods identity thieves have used to get hold of personal information, include:
1. Dumpster Diving. Sifting through trash looking for bills or other documents containing personal information.
2. Skimming. Stealing credit/debit card numbers by using a special storage device when processing cards. Ever had a card not read and the clerk rub it on their leg to clean the magnetic strip? The device can be attached to their leg and the data can be electronically recorded. Be aware of this.  
3. Pretexting. Using false pretenses to obtain personal information from unsuspecting victims regarding financial institutions, telephone companies, and other sources.
4. Physical Theft. Theft of wallets and purses, mail, or personnel records. Mail theft is very common and can provide thieves with information such as financial statements, pre-approved credit card offers, or blank checks.
5. Phishing. The pretense of being a financial institution or company and sending spam email or pop-up internet messages to trick victims into revealing personal information.
6. Change of Address. In some cases, identity thieves have submitted a change of address form to the post office, to divert mail to another location.
7. Obituaries. It is sad to say, but some identity thieves prey upon the grieving. Some have been known to read obituaries, which almost always give the time & location of a funeral service. While families are grieving, thieves are thieving. There have been instances of stolen mail or even actual burglaries of homes in which personal information has been stolen while loved ones are paying their final respects.

These are the most common ways that thieves steal personal information, however, these are not all the ways. There are ways that, I’m sure, have yet to be discovered. The purpose of this article was to alert you to the seriousness of identity theft and the many ways it can occur. In future articles, I will provide definitions of each type of identity theft along with examples of actual events. I will also begin providing tips on how to guard against identity theft. Although it will never be 100% preventable, there are actions we can take to minimize our risks.

I hope you found this article to be informative and useful and I welcome any comments or suggestions. Thank you for your time!