According to United States Postal Service, Identity Theft is America's fastest growing crime with approximately 10 million victims last year at a cost of about $5 billion. The actual number is probably much higher since law enforcement agencies may classify crimes differently.
Identity theft or fraud refers to all crimes where someone wrongfully obtains and uses another's personal information in a deceptive way. This typically involves a monetary loss for the victim.
Once this information is obtained, money can be stolen from a persons banking account, or include other financial loss. And in more severe cases, actually taking over someone's identity to incur vast amounts of debt and committing crimes under the victims identity.
Common ways criminals obtain your information:
- By physically stealing your personal information through a burglary or theft or your wallet or purse
- Listening in on your conversation in a public place when you are using your credit card or phone card
- Stealing your mail
- Pose as a legitimate business person or government official asking for your personal information
- Practice "dumpster diving" where they rummage through your trash or the trash of businesses
- Through the Internet when unsuspecting persons respond to unsolicited e-mails requesting identifying data
Once this information is obtained, the thieves use it by:
- Going on a spending spree using your credit or debit card account numbers. They will generally change the mailing address on the card. This gives them more time to run up the amount of your credit card before you find out.
- Opening a new credit card account using your name, date of birth, and Social Security Number.
- Using your information to take out auto loans, establish wireless phone service, obtain counterfeit checks or debit cards, and even file for bankruptcy.
- Giving the police your name during an arrest. When they don't show up for court, an arrest warrant will be issued for YOU!
Identifying if you have been a victim:
- Failing to receive bills or other mail. This could signal an address change by the thief
- Receiving credit cards for which you did not apply
- Denial of credit for no apparent reason
- Receiving calls from debt collectors or companies about merchandise or services you didn't buy
In Part II of this series, we will discuss steps you can take to reduce your chances of being a victim of ID theft and fraud
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