Summary Explaining Identity Theft

Protect yourself from identity theft.

Identity theft poses a major problem for consumers and law enforcement. According to the Federal Trade Commission (FTC), as many as 9 million Americans experience identity theft each year. Identity theft can cost you money and damage your credit rating, leading to lost credit, housing or job opportunities. Protect yourself from identity theft by educating yourself about it.

Definition

Identity theft is the unauthorized use of another person's name, credit card number, Social Security number or other personal information. Identity thieves often charge purchases to victims' accounts and may also open new accounts under their victims' names. Some thieves obtain government identification or benefits in victims' names. In severe cases, identity thieves may also commit other crimes under their victims' identities, leading to serious legal problems for victims.

Identity Theft Methods

Identity thieves acquire victims' information in several different ways. Online identity theft scams often involve phishing, in which thieves trick victims into giving away passwords and other information using emails and websites set up to look like those of legitimate retailers or financial institutions. Some identity thieves go through victims' trash to find bills, bank statements or other sensitive documents. Others use skimming devices to capture credit or debit card information during in-person sales or at ATMs. Identity thieves may also steal victims' wallets, purses or mail.

Prevention

To prevent identity theft, safeguard your personal information. Shred all bills and other important documents. Avoid carrying your Social Security card with you and do not give out your Social Security number unless absolutely necessary. Do not give out your passwords, PIN numbers or other sensitive information online or over the phone without making sure you are dealing with a legitimate organization. Try not to use sensitive passwords or PIN numbers on public wireless connections. Never click links in unsolicited or suspicious emails. Use hard-to-guess passwords and PIN numbers rather than easy-to-guess ones like names, birthdays or anniversaries. At home, keep your personal documents and information in a safe place.

Detection

Monitor your bank and credit card statements. Every month, review all debits and charges to make sure you authorized them. Know when you generally receive statements so that you will know if you fail to receive them. Additionally, check your credit report regularly for unauthorized activity.

If Your Identity Is Stolen

If your wallet, purse or identity are stolen, take immediate action. Immediately call your banks and credit card issuers to inform them of lost or stolen cards so they can block further charges. File a police report. Contact at least one of the three major credit bureaus--Experian, TransUnion or Equifax--to place a fraud alert on your credit file and receive a free credit report. Report the theft to the Federal Trade Commission online, by phone or by mail. Finally, keep any documents you receive regarding the theft.

References

• Federal Trade Commission: About Identity Theft
• Federal Trade Commission: Avoid ID Theft

Resources

• Federal Trade Commission: Fighting Back Against Identity Theft