Identity Theft 101

Understanding the Issue of Identity Theft

Most people are aware that you can check your own credit report. However, current laws only require credit reporting agencies to provide a person with that information once during a calendar year, for no charge. A lot can happen in a year, including identity theft. If you don’t even know what this is, you are at even greater risk. Considering that identity theft is the fastest growing crime, this isn’t a good thing for you as a consumer. Understanding what identity theft is, what criminals do with this information and how they get it can help you protect yourself from being a victim of this destructive crime.

What is Identity Theft?

Everything that companies, businesses and employers need to know about you is kept in a file known as your credit report. Your name, address and social security number are attached to this file, among other things, such as credit card accounts and outstanding loans. When someone accesses this information and begins to create accounts without your knowledge, your identity has been stolen. All defaults and missed payments become visible on this report and attached to your name, creating a mess when you try to use what you thought was your good credit.

How Do They Find This Stuff?

There are dozens of ways that people with ill intent can get your information. Just think of all the forms you fill out on a weekly or monthly basis that include some type of identifying information. Your social security number is the easiest way for a criminal to assume your identity. While most people are careful about this piece of identifying information, it’s out there in numerous places. Your doctor probably needs it in order to keep files and fill prescriptions. While they may be trustworthy, someone in their office may not be and problems can occur. Credit card numbers can be lifted by a desperate waitress while you pay your bill or even hacked when you shop online.

Why Do They Want It?

Every person has a different reason to feel motivated to indulge in identity theft. One of the most common scenarios involves shady family members, surprisingly. Usually accounts are opened and loans taken out in the name of the victim. When the criminal stops paying, the victim is notified. Also, a full identity, complete with a SSN, is often stolen in order to sell it to an illegal alien so that they can have papers in order to obtain a job. This person may or may not also take out loans and credit cards as well.

Protect Yourself

The best way to be protected from identity theft is to be aware. Check your information regularly. It doesn’t hurt at all to do this monthly even. Know what is there and be prepared to dispute anything immediately. Also, keep that personal information close to your hip. Don’t give it all unless it’s legally necessary. Your doctor can use a different number to identify your file. Get single use credit card numbers when shopping online, or place your order over the phone instead. These techniques combined can provide a layer of protection against identity theft.