What Is Identity Theft?

These personal details can be your name, address, bank account details, credit card number and social security number.

5 Ways You Could  Lose Your ID

The information stolen from you can be used in a variety of ways, however these fall into the following categories;

1. Credit Card Fraud

This is the most common way identity thieves commit crime using your personal data. They can do this by pretending to be you then they contact your credit card provider and ask them to change your address to another address on your existing account. This address can be a real or false address but the criminal will not be actually living there.

A ID thief can also use your credit card details to set up a new credit card account. The aim of changing your address is to have the credit card provider send the card statements to the false address. In this way it can take a while for you to detect that something is wrong as the statements are not being sent to you.

2. Cell Phones and utilities

Another common approach is for a criminal to apply for a cell phone or a utility such as a gas bill using your name.

3. Deposit accounts

With this method a thief opens up a bank deposit account using your name. Many do this for a fraudulent business set up where they transfer money into account or write bad checks for products and services that will never be paid for.

4. Phishing

Due to the popularity of the internet the rise of online fraud has increased. A popular way that is used by ID thieves is sending out masses of emails with the intention  of fooling people to send them their banking details by pretending to be a legitimate organization such as a bank.

The email usually contains a link to a website where the person is asked to fill out a form to update their identification details and password. Many of the sites that victims are sent to are designed to look exactly like the real website the criminals are pretending to be.  

4. Other ways

ID theft can be committed through hacking into databases that hold data relating to consumer personal and banking details. ID theft can also be committed in the old fashioned way in which your personal details can be obtained if you have not taken the proper precautions of disposing them. A perfect example, is throwing out your utility bills and credit card statements in the garbage can without shredding them.

What Is Identity Theft Protection

If you've become a victim of identity theft then you may want to consider identity theft protection. This is a service provided by specialist companies that monitor your credit accounts to detect identity theft and unusual payment transactions.

If this happens these services can send you fraud alerts by email, text or even phone to warn you so that you can take the necessary to limit the damage.

Recovery from identity theft can be a long and an emotionally challenging ordeal. It can also affect your  credit report and your ability to borrow credit in the future.

If your identity is stolen then read the how to prevent identity theft article for tips on how to reduce your risk of becoming a victim again.