Identity Theft: How Thieves Get

and Use Your Information

Identity theft is one of the nation’s fastest-growing crimes, affecting more than 9 million people each year. These crimes are estimated to have taken the average victim $500 and 30 hours to resolve. The more you know about this crime, the better prepared you will be to guard against it.

How Thieves Get Your Identity

Identity theft crimes range from purse snatchings to kingpin-style fraud rings. The definition of identity theft is a crime in which an imposter obtains key pieces of personal information, such as a Social Security number, in order to impersonate someone else. A thief can get your personal information in a number of ways, including:

• Going through your mail and take your bank and credit card statements, pre-approved credit offers and tax information.

• Completing a "change of address form" to reroute your mail to another location. Since your bills are being sent to the new address, you may not immediately notice fraudulent charges.

• Stealing your wallet or purse containing your personal identification and credit cards.

• Rummaging through trash bins, called “dumpster diving," for your personal information such as unshredded credit card and loan applications.

• Buying your personal information from "inside" sources. For instance, an identity thief may pay a store employee for a copy of your credit application.

• Capturing PIN numbers by “shoulder surfing" at ATM machines and phone booths.

How Thieves Use Your Identity

Once the thief has your personal information, it can be used in a number of ways, all of which can be damaging to your credit. Identity thieves often:

• Call your credit card company and ask to change the mailing address on your credit card account. Then, they run up the charges on your credit card. Because your bills are being sent to the new address, it may take some time before you realize what has happened.
• Use your name, date of birth and SSN, to open a new credit card account. They use the credit card and do not pay the bills. Sometimes they make the minimum payment every month so that the activity can go on, unnoticed, for months.
• Establish phone or wireless service in your name.
• Open a checking account in your name and write bad checks.
• File for bankruptcy under your name to avoid paying the debts they have incurred as you.

How You Can Protect Your Identity

The best security policy is to be aware of identity theft and cautious about where you share personal information. By managing your personal information carefully and sensibly, you can help guard against identity theft. Follow these tactics to minimize your risk:

• Do not carry extra credit cards, your Social Security card, birth certificate or passport with you unless absolutely necessary.
• Guard your mail from theft. Promptly remove mail from your mailbox after it has been delivered. Consider installing a locked mailbox at your residence.
• When you order new checks, do not have them sent to your home. Pick them up at the bank instead. If stolen, your checks can be altered and cashed by identity thieves.
• Never give out personal information over the phone unless you have initiated the call. Identity thieves may call, posing as representatives of banks, credit card companies, or government agencies to get you to personally identifying information. Simply say, “I do not feel comfortable revealing this information over the phone,“ and hang up.
• Buy a shredder, and shred your receipts, credit card offers, bank statements, returned checks and sensitive information before throwing it away.
• Check with your employer, landlord, and others with access to your personal data to be sure that they are keeping your records safe.
• Protect your Social Security number with extra care. Disclose it only when it is absolutely necessary. Do not have your Social Security number printed on your checks. If a business requests your Social Security Number, ask if there is an alternative number that can be used instead.
• Remove your name from the marketing lists of the three credit reporting bureaus-- Equifax, Experian and Trans Union. This will limit the number of pre-approved offers of credit that you receive – the less you will have to shred.
• Opt out of receiving pre-screened credit card offers by calling (888) 567-8688. The three major credit bureaus use the same toll-free number to let consumers choose not to receive pre-screened credit offers.
• Follow your billing cycles, and check in with creditors if your bills do not arrive when they should. A missing credit card bill could mean an identity thief has discovered your account information and changed your billing address to his own. Or sign up to receive statements online or through e-mail instead of receiving paper statements.
• Cancel all unused credit card accounts, and reduce the number of credit cards you actively use to one or two.
• File away a list of all your credit card account numbers – with expiration dates and telephone numbers. Do the same with your bank account. If your purse or wallet is stolen, you will be able to quickly alert your creditors and prevent fraud.
• Always take credit card receipts from cashiers. Never toss them in a public trash container.
• When expecting a new or reissued credit card to arrive, always watch the mail. Contact the credit card company if the card does not arrive.
• When creating passwords and PINs, use a random mix of letters and numbers. Do not use information that may be easily discovered by identity thieves, including the last four digits of your Social Security number, your birth date, middle name or pet’s name.
• Memorize all your passwords. Do not keep them in your purse or wallet.
• Shield your hand when using an ATM or making long distance phone calls with your phone card. "Shoulder surfers“ may be nearby with binoculars or a video camera.

Adapted with permission from TrueCredit, a subsidiary of TransUnion. For more assistance with credit records, visit www.truecredit.com.

©2008 ComPsych ^® Corporation. All rights reserved. This information is for educational purposes only. It is always important to consult with the appropriate professional on financial, medical, legal, behavioral or other issues. As you read this information, it is your responsibility to make sure that the facts and ideas apply to your situation.