Poole
Identity CS1003
4/17/2008
Edward Theft and Identity Fraud
What is identity theft? Identity theft occurs when someone uses your personally identifying information, like your name, Social Security number, or credit card number, without your permission, to commit fraud or other crimes. Identity theft is a growing epidemic across the world; people's lives and credit are being ruined without them even knowing.(2) How is identity theft committed? Identity theft starts with the misuse of your personally identifying information such as your name and Social Security number, credit card numbers, or other financial account information. For identity thieves, this information is as good as gold. Skilled identity thieves may use a variety of methods to get hold of your information, including: 1. Dumpster Diving: They rummage through trash looking for bills or other paper with your personal information on it. (1) 2. Skimming: They steal credit/debit card numbers by using a special storage device when processing your card. (1) 3. Phishing: They pretend to be financial institutions or companies and send spam or popup messages to get you to reveal your personal information. (1) 4. Changing Your Addres: They divert your billing statements to another location by completing a change of address form. (1) 5. Old-Fashioned Stealing: They steal wallets and purses; mail, including bank and credit card statements; pre-approved credit offers; and new checks or tax information. They steal personnel records, or bribe employees who have access. (1) 6. Pretexting: They use false pretenses to obtain your personal information from financial institutions, telephone companies, and other sources(1)
What do thieves do with stolen identities? Credit card fraud: They may open new credit card accounts in your name. When they use the cards and don't pay the bills, the delinquent accounts appear on your credit report. They may also change the billing address on your credit card so that you no longer receive bills, and then run up charges on your account. Because your bills are now sent to a different address, it may be some time before you realize there's a problem.(1) Phone or utilities fraud:They may open a new phone or wireless account in your name, or run up charges on your existing account. They may use your name to get utility services like electricity, heating, or cable TV. (1)
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CS1003 Bank/finance fraud:
4/17/2008
Edward Poole
They may create counterfeit checks using your name or account number. They may open a bank account in your name and write bad checks. They may clone your ATM or debit card and make electronic withdrawals your name, draining your accounts. They may take out a loan in your name. Government documents fraud: They may get a driver's license or official ID card issued in your but name with their picture. They may use your name and Social Security number to get government benefits. They may file a fraudulent tax return using your information. Other fraud: They may get a job using your Social Security number. They may rent a house or get medical services using your name. They may give your personal information to police during an arrest. If they don't show up for their court date, a warrant for arrest is issued in your name.
What should I do if my identity has been stolen? Filing a police report, checking your credit reports, notifying creditors, and disputing any unauthorized transactions are some of the steps you must take immediately to restore your good name.
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CS1003
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Edward Poole
How long do the effects of an identity theft last? It's difficult to predict how long the effects of identity theft may linger. That's because it depends on many factors including the type of theft, whether the thief sold or passed your information on to other thieves, whether the thief is caught, and problems related to correcting your credit report. Victims of identity theft should monitor financial records for several months after they discover the crime. (1)Victims should review their credit reports once every three months in the first year of the theft, and once a year thereafter.
How can you find out if you identity has been stolen? The best way to find out is to monitor your accounts and bank statements each month, and check your credit report on a regular basis. If you check your credit report regularly, you may be able to limit the damage caused by identity theft. Unfortunately, many consumers learn that their identity has been stolen after some damage has been done.(1)
You may find out when bill collection agencies contact you for overdue debts you never incurred. You may find out when you apply for a mortgage or car loan and learn that problems with your credit history are holding up the loan. You may find out when you get something in the mail about an apartment you never rented, a house you never bought, or a job you never held. Conclusion Identity theft is a growing problem and especially in the united states. Many people aren't even aware of what it is capable of doing to your life and continue their lives not taking the many precautions necessary to protect themselves from it until it is too late. The best way to prevent identity theft is to be smart about giving your information out and disposing it properly, after that there isn't much you can do.
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CS1003
4/17/2008
Edward Poole
Reference Page
1. Fighting back against identity theft, Federal Trade Commison http://www.ftc.gov/bcp/edu/microsites/idtheft/consumers/about-identity-theft.html 2.http://www.usdoj.gov/criminal/fraud/websites/idtheft.html
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