Identity theft happens when someone steals your identity and impersonates you in order to open credit or bank accounts, rent apartments, or engage in criminal acts.
The victim may not know the fraud has occurred until they are unexpectedly turned down for a loan, they get a call from a collection agency about an account they never opened or, worse yet, get a call from the police about a crime they didn't commit.
On average, identity theft is discovered 14 months after the thief has wreaked havoc on the victim's credit standing.
Identity thieves use a variety of ways to gain access to this personal information including:
- Stealing mail
- Looking through your garbage
- Stealing your wallet or purse
- Posing as your employer, bank or utility company needing to "update their records"
- Collecting information from Internet sites that are not secure
- Completing a "change of address" form at the post office
- Stealing the information that you may have provided
Ways to protect yourself from identify theft
- Carry only the cards that you need to have with you; file others in a safe place at home
- Sign your credit cards and bank cards immediately
- Do not carry your social security card with you, keep it in a secure place
- Do not attach a password or social security number to any cards you carry with you (including your driver's license)
- Do not attach or write a password or social security number on anything you are going to discard
- Shred any documents that contain credit card numbers, account numbers or other important information before you discard them
- Alert companies with whom you have accounts if you do not receive statements
- Check receipts to insure you have received your own
- Do not give personal information or account numbers to anyone until you have confirmed the identity of the person
- Frequently check your credit reports and social security statements