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What Are the Most Common Ways to Commit Identity Theft or
Fraud?
It's the number one source of consumer complaints at the
Federal Trade Commission (FTC), and unfortunately, it's one of
the simplest crimes to commit. Identity theft involves
information from your daily life, from shopping, bill-paying, and
even applying for a job. Thieves take advantage of everyday
opportunities to discover your personal information, including
your Social Security number (SSN), bank or credit card account
numbers, income, name, address, or phone number, and use it to
commit fraud or other crimes.
How can a stranger get to your information? According to the
FTC, identity thieves may pose as legitimate representatives of
an organization, as business professionals or agents of the
government, conning you into revealing sensitive information.
Common scams include impersonating employees from banks, credit
card companies, Internet service providers, and utility
companies. If someone calls you claiming to represent a
legitimate organization, confirm this by calling the customer
service number listed on your statement or bill.
Thieves may also use your place of employment to get the
information they need. A co-worker may steal information from
your employer; someone could hack into your company's computer
and copy employee records; or a criminal could resort to the
old-fashioned method of bribing someone you work with for your
information. Check with your employer to find out the company
policy on securing your records and disposing of them when you're
gone.
If your employer is authorized to pull credit reports on
employees or potential customers, someone could take advantage of
this access to retrieve illegal reports. Criminals may also pose
as employers, landlords, or collection agents to pull your credit
information. It's a good idea to order a copy of your credit
report once a year to check for unauthorized entries.
Shredding your documents before you throw them away is also
good idea, whether at work or at home. Identity thieves have been
known to sift through garbage, in the trash can or at the dump,
to find sensitive information.
The most common form of identity theft is credit card fraud.
Technology has allowed criminals to begin stealing your credit or
debit card numbers as you use the cards, "skimming" them with an
information storage device. In addition, thousands of drivers'
licenses and credit and debit cards are stolen each year. Keeping
your Social Security card in a secure location and safeguarding
your purse or wallet while at work are necessary precautions.
Even your mail is a source for identity thieves, who may
complete credit card applications in your name and go on a
spending spree. After stealing your bank or credit card
statements, tax information, or box of replacement checks,
criminals are able to access your accounts and spend the funds in
your name. They may even change the address on your existing
account, diverting the bills to keep you from recognizing the
problem until it's too late. Being aware of your billing cycles
can help you catch a discrepancy in the arrival of your
statements.
Identity thieves have a variety of ways to use your
information for their personal gain. They may shop for big-ticket
items using your credit or bank account information and then sell
the items for cash. With your SSN and date of birth, they can
open new bank accounts or apply for lines of credit. In fact,
banks have granted loans to criminals using stolen identities for
purchases as large as cars.
Telephone or internet service can be set up using your SSN.
Thieves can avoid impending eviction or accumulated debt by
filing bankruptcy in your name. Perhaps the most emotionally
traumatic, police could issue a warrant for you if a criminal was
arrested using your name and failed to appear at a court
hearing.
The ways that identity thieves have conceived to acquire your
personal information are numerous, but your vigilance and
heightened awareness can curb their ability to make you a victim.
And, if you sustain credit damage, go to
http://www.creditdamage.com to find out what you can do about
it.
Cathy Taylor is a marketing consultant with over 25 years
experience. She specializes in internet marketing, strategy and
plan development, as well as management of communications and
public relations programs for small business sectors. She can be
reached at Creative Communications: creative-com@cox.net or by
visiting http://www.creditdamage.com or
http://www.internet-marketing-small-business.com
MORE RESOURCES:
Credit - Google News
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