Identity Theft Overview
What is identity theft?
Identity theft occurs when someone uses another person’s personally identifying information to commit fraud or other crimes. The information the thieves use could be your name, social security number or credit card number.How do identity thieves get information?
Identity thieves may use a variety of methods to obtain another person’s information. Some examples provided by the Federal Trade Commission (FTC) include:Dumpster Diving
A thief will rummage through trash looking for bills, bank account statements or other papers with personal information on it.Skimming
A thief will steal credit or debit card numbers in an otherwise legitimate transaction by using a special storage device when processing your card.Phishing
A thief will pretend to be a financial institution or company and send spam, pop-up or phone calls in order to get an individual to reveal their personal information.Changing Address
A thief will divert your billing statements to another location by completing a change of address form.Old-fashioned Stealing
A thief walks away with a wallet, purse or mail. Personal information is often stored within a wallet or purse and may be received via mail.Once the thieves get my personal information, what do they do?
Once an identity thief has your personal information, they may use it in various ways. A few examples that were provided by the FTC are listed below.Credit Card Fraud
- The thief may open new credit card accounts in your name. When they use the card and don’t pay the bills, the delinquent accounts appear on your credit report.
- The thief may change the billing address on a current credit card so that you no longer receive bills and then may run up the charges on the account. Because the bills are sent to a different address, it may be some time before you realize that there is a problem.
Phone or Utilities Fraud
- The thief may open a new phone or cellular account in your name or run up charges on an existing account.
- The thief may use your name in order to get utility services, such as electricity, heating, or cable television.
Bank or Finance Fraud
- A thief may create counterfeit checks using your name or account number.
- A thief may open a bank account in your name and write bad checks.
- A thief may clone your ATM or debit card and make electronic withdrawals, draining your account.
- A thief may take out a loan in your name.
Government Documents Fraud
- A thief may get a driver’s license or official ID card issued in your name, but with the thief’s picture.
- A thief may use your name and social security number to get government benefits.
- A thief may file a fraudulent tax return using your information.
Other Fraud
- A thief may get a job using your social security number.
- A thief may rent a house or get medical services using your name.
- A thief may give your information to police during an arrest. If they don’t show up for their court date, a warrant for arrest is issued in your name.
How do you discover identity theft?
The best way to determine if your identity has been stolen is to monitor your accounts and bank statements each month and to review your credit report on a regular basis. Taking these precautions may limit the damage caused by identity theft. For more information, see Preventing Identity Theft.
Unfortunately, many individuals discover that their identity has been stolen after some damage has already taken place. You may find out when bill collection agencies contact you for overdue debts you never incurred, when you apply for a mortgage or car loan and learn that problems with your credit history are holding up the loan, or you when you get something in the mail about an apartment you never rented, a house you never bought or a job you never had.
What should I do if my identity is stolen?
Filing a police report and disputing unauthorized transactions are some of the steps you must take immediately to defend your name. For more information on what steps you should take if you become a victim of identity theft, see Recovering from Identity Theft.How long can the effects of identity theft last?
It’s difficult to predict how long the effects of identity theft may linger because it depends on many factors, including:- The type of identity theft
- Whether the thief sold or passed your information on to other thieves
- Whether the thief is caught
- Problems related to your credit report
Victims of identity theft should monitor financial records for several months after they discover the crime. Victims should review their credit reports once every three months in the first year of the theft, and once a year thereafter. It is important that identity theft victims do not delay correcting their records and contacting all companies that opened fraudulent accounts. The initial contact may be made by phone, however you will normally need to follow up in writing. The longer the inaccurate information goes uncorrected, the longer it will take to resolve the problem.
*These pages were compiled using information provided by the Federal Trade Commission.