How Many People Are Affected By Identity Theft?
Unexplained purchases on your credit cards should raise red flags. What if you received a notice that your Texas driver's license has been suspended, even though your license is from California? These could be signs of identity theft. This article will explain more details of identity theft and how many people are affected.
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Identification
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Although anyone can be a victim of identity theft, normally those with good credit are affected more. Suddenly and inexplicably, they begin to be turned down for credit or have their credit cards rejected. Sometimes debt collectors will start calling the victim's house, demanding money for items the person did not buy. Identity theft can also be identified when the victim goes through a regular background check and discovers that they have been denied promotions or certain jobs due to their credit rating. The sad part is that when identity theft is recognized, most of the damage has already been done.
History
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Identity theft existed before the Internet. People used to gather information about others through simpler means, like telephone scams. Other ways were a little dirtier--literally. Thieves would go into victims' trash cans and Dumpsters and steal such things as ATM receipts and papers with Social Security numbers on them.
Even though identity theft eventually grew to use computers, mailboxes still post a significant risk. Many times credit card companies will offer you great rates and unsecured credit. These offers sometimes already come with personal information printed on them. If you throw it away without destroying or shredding the information, you could become a victim
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Size
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Experts say that more than 10 million people were victims of identity theft as of 2004. Those numbers have declined over time, with 9.3 million people reporting in 2005 and 8.4 million in 2007. Yet, in 2007, there was more than $49.3 billion in fraud reported lost because of identity theft, with each victim averaging around $5,000 in losses.
Effects
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Identity theft has forced many companies to pay for online security systems. It has also made customers a little more wary about shopping online.
Identity theft can also make a victim's credit report become almost irreparable if unauthorized transactions are made under the victim's name. Creditors may feel sorry for you, but they are still out a lot of money and will need proof from you that your identity was stolen before they extend that sympathy into something tangible like removal of debt.
Prevention/Solution
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Do not give out your personal information, such as your Social Security number or your mother's maiden name. Those are two bits of information that identity thieves seek to access Some thieves will try to get this info from you via the telephone or by breaking into computer databases.
Since computers are a popular way for identity thieves to attack you, you need to cover your tracks. Whatever transactions made online should be done through an at least a 128-bit secure socket-layer encryption system that scrambles your personal data during the transaction. If it is not secured or the website doesn't guarantee that it won't sell or transmit your personal information to a third party, that is a clear warning sign.
Do not share your password or write it down in an obvious place for convenience.
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