What is Identity Theft?

Identity theft can happen in a variety of ways. Before the age of computers, potential thieves might look through your garbage hoping to find receipts or financial statements with your personal data. They were usually searching for your bank account numbers, Social Security number, driver’s license number, and credit card numbers. Armed with this information, thieves could purchase merchandise and open new accounts to obtain more credit and new loans. Identity theft can also occur if your wallet or purse is lost or stolen. It makes it much easier for the thief if your license and credit cards are all there for the taking. Thieves will steal financial statements and credit cards directly from mailboxes. They will change the address on pre-approved card applications and secure new credit in your name.

Some methods of what is identity theft include looking over your shoulder as you fill out forms, applications, or make a bank transaction at an ATM. Technology has exposed us to newer and more creative ways of stealing our identities. Computer hackers can access databases that contain names, addresses, telephone numbers, email addresses, account numbers, and a myriad of other personal data. Computer spyware and certain viruses can hijack information directly from your hard drive and send it via back to the hacker via the internet. Cell phone calls can be tapped, and push button phones allow thieves to easily retrieve PIN numbers and passwords.

Types of identity theft

Identity theft can take the form of two main types. The first is “account takeover” where the thief actually gains access and assumes control of your existing accounts. An example of what is identity theft in this instance is where the thief uses your stolen credit card number to make unauthorized purchases in a store. Another common tactic is to change the address on the credit card so that you never see the bills that are being racked up. This may allow the thief to go undetected for an extended period of time.

Another facet of what is identity theft is known as “true name” where the thief takes your information and uses it to open completely new accounts. These may include a new checking account, cell phone, cable television, or credit card accounts. The thief essentially assumes your identity in order to conduct business as though he is authorized to do so. The internet has facilitated this type of crime since business can be effortlessly transacted without face-to-face verification of the person’s identity.

Identity theft scams

There are several good resources for finding out what is identity theft and the latest scams that are circulating. Among them are the Federal Bureau of Investigation, Federal Trade Commission, and the Better Business Bureau. Many scams center on telemarketing where the caller tries to trick you into providing personal information over the phone. Another popular scheme involves official-looking emails that are designed to lure you into forking over your online banking details. There are also insiders working in restaurants and retailers who will sell card numbers to fraudsters who resell fake credit cards.

A lingering problem of identity theft is that crimes perpetrated by the criminals are often attributed to the victims of those crimes. Vigilance and an awareness of what is identity theft can go a long way in protecting you from such predators.