Introduction

Identity theft is an increasingly common and inventive federal crime. Fortunately, there are many preventative measures you can take to substantially reduce the chance of identity theft occurring, as well as steps you can take to minimize damage if you are a victim. This program covers what you need to know:

• Common Practices of Identity Thieves
• Preventing Identity Theft
• How To Recover
• Consumer Rights and Responsibilities
• Helpful Resources

Chapter 1: Common Practices of Identity Thieves

Identity theft occurs when someone uses your name, Social Security number, credit card number, or other identifying data to commit fraud or other crimes. It may involve stealing your information from a computer, the US postal system, telephone or other wireless communication device, or directly from a financial institution or other business.

How Identity Thieves Illegally Acquire Information

Thieves use a variety of illegal techniques to procure identity information. They may:

• Take mail from a mailbox.

• Divert mail to another location by filling out a change of address form.

• Go through trash to find identification and financial documents.

• Access credit reports by posing as landlords or employers.

• Hack into personal computers.

• Pose as legitimate companies or government agencies to request personal information via email (called phishing).

• Steal hard copy or electronic files from your workplace.

• Stand close to you at the ATM to learn your Personal Identification Number.

• Work at restaurants, gas stations, or other businesses to steal money or information from credit/ATM/debit cards (called skimming).
  

What an Identity Thief Can Do
After an identity thief has your personal information, he may use it in a variety of illegal ways. Common practices include:

• Charging on existing credit accounts. Though many retailers have policies where the cashier is required to cross check your identification when you pay with plastic, some do not. It is even easier for thieves to use your accounts when making telephone and online purchases.

• Opening new credit accounts. Once a thief has your personal information, he can open accounts in your name, but have the card routed to him. At that stage he can make purchases but the bill never arrives at your home. You won't know about the crime until a collector tracks you down, you apply for a loan and are denied, or you pull a copy of your credit report and you see the activity.

• Using existing or opening new checking accounts. If a thief steals your checkbook, he can forge your signature and write checks to pay for purchases, or even use your personal identification to set up fraudulent checking accounts in your name.

• Establish phone or wireless service.

• Use your debit card to drain a checking account. Though a thief will need your PIN to take money out of an cash machine, all he has to do is forge your signature when using it at a store or restaurant.

• Take out loans to buy cars and other expensive items. As with credit accounts, you often won't know of the activity until you experience some type of negative credit or collection action.