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People whose identities have been stolen can spend months or years — and their hard-earned money — cleaning up the mess thieves have made of their good name and credit record. In the meantime, victims may lose job opportunities, be refused loans, education, housing or cars, or even get arrested for crimes they didn't commit.

When it comes to protecting yourself from identity theft, knowledge is everything. Get informed about what identity theft is, and how to protect yourself from becoming a victim.

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Identity Theft

Identity theft occurs when someone uses your personal information such as your name, Social Security number, credit card number or other identifying information, without your permission to commit fraud or other crimes.

Identity theft is a serious crime. People whose identities have been stolen can spend months or years—and their hard-earned money—cleaning up the mess thieves have made of their good name and credit record. In the meantime, victims may lose job opportunities, be refused loans, education, housing or cars, or even get arrested for crimes they didn't commit. 

Identity thieves may use a variety of low- and high-tech methods to gain access to your personally identifying information. For example:

  • They get information from businesses or institutions by:
  • stealing records from their employer,
  • bribing an employee who has access to the records,
  • conning information out of employees, or
  • hacking into the organization's computers.
  • They rummage through your trash, the trash of businesses, or dumps in a practice known as "dumpster diving."
  • They obtain credit reports by abusing their employer's authorized access to credit reports or by posing as a landlord, employer or someone else who may have a legitimate need for and a legal right to the information.
  • They steal credit and debit card account numbers as your card is processed by using a special information storage device in a practice known as "skimming."
  • They steal wallets and purses containing identification and credit and bank cards.
  • They steal mail, including bank and credit card statements, pre-approved credit offers, new checks, or tax information.
  • They complete a "change of address form" to divert mail to another location.
  • They steal personal information from your home.
  • They scam information from you by posing as a legitimate business person or government official.

Keep up with your accounts in the following ways:

  • Monitor the balances of your financial accounts. Look for unexplained charges or withdrawals.
  • Other indications of identity theft include:
  • failing to receive bills or other mail, which may signal an address change by the identity thief,
  • receiving credit cards for which you did not apply,
  • being denied credit for no apparent reason, or
  • receiving calls or letters from debt collectors or businesses about merchandise or services you did not buy.

Although any of these indications could be a result of a simple error, you should not assume that there's been a mistake and do nothing. Always follow up with the business or institution to find out.

As with any crime, you can't guarantee that you will never be a victim, but you can minimize your risk. By managing your personal information widely, cautiously and with an awareness of the issue, you can help guard against identity theft.

  • Don't give out personal information on the phone, through the mail or over the Internet unless you've initiated the contact or are sure you know who you're dealing with. Identity thieves may pose as representatives of banks, Internet service providers (ISPs) and even government agencies to get you to reveal your SSN, mother's maiden name, account numbers, and other identifying information. Before you share any personal information, confirm that you are dealing with a legitimate organization. You can check the organization's Web site as many companies post scam alerts when their name is used improperly, or you can call customer service using the number listed on your account statement or in the telephone book.
  • Secure personal information in your home, especially if you have roommates, employ outside help or are having service work done in your home.
  • Guard your mail and trash from theft.

A lost or stolen purse or wallet is a goldmine of information for an identity thief. If you find yourself in this situation, here is a list of recommended actions you should take immediately!

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