What is Identity Theft?
Identity theft is a fraudulent crime of one person taking another persons financial and personal information and then using it without permission or their knowledge. In essence, identity thieves will use your social security number, credit card numbers, banking information, etc without you even knowing about it - until it's too late. They take your personal information and go about financial transactions pretending to be you.
What is ID Theft
Common Identity Theft Activity
What will an identity thief do with my personal information?
Common Identity Theft Activity is:
• Make many purchases with your ATM card or credit cards - leaving YOU with the bill.
• Apply for credit accounts.
• Use your information to open a checking account leaving a trail of NSF checks in their wake with YOUR name on it.
• Apply for loans.
• Get set up with utility services such as cable using your name.
• Forge your name into checks and legal documents.
• Use your personal information to send wire transfers.
These are just a few of the activities identity theft victims have noted. This ever-rising crime leads to many more criminal acts that can lead you to financial hardship, emotional stress, and a world of frustration as you spend months and a lot of money trying to prove your innocence.
Here is the FTC’s (Federal Trade Commission) 2006 Identity Theft Victim Complain Data (pdf)
Types of Identity Theft
Identity theft can be narrowed down into two basic forms. The most common form involves your credit cards.
Credit card fraud, also called credit card identity theft, is when someone uses your credit cards without your permission or even your knowledge. In a nutshell, a credit card identity thief will take your credit card and go on a huge shopping spree - leaving you with the huge bill.
American Express and other identity theft or fraud is extremely common. There are simple steps you can take to try and avoid credit card identity theft from happening to you. If you follow these tips to prevent identity theft, you can reduce your chances of being the next identity theft victim.
The more serious type of identity theft is when your complete identity is stolen. Criminals will use your personal information and literally “be” you. There have been an astounding number of identity theft cases where the offender has set up a complete life - all with some basic stolen personal and financial information. These criminals have paid rent, obtained utilities, applied for loans, and gotten jobs with stolen identities. These scenarios are truly a nightmare for the victims of this type of identity theft and can take them years - and thousands of dollars - to try and straighten out.
What can a consumer do to prevent identity theft?
A sure-fire way to ensure that you will not a victim of identity theft is to obtain identity theft prevention insurance from a reputable company that has a guarantee backing your coverage. Find out more about Identity Theft Prevention Insurance.
