The thieves might call your credit card companies and pretend to be you. They might ask to change the mailing address on your credit card account. Then they use your credit card number to charge goods and services.
They might even open a new credit card account using your name, birth date, and Social Security number. If they use your name and Social Security number, the charges can show up as a delinquent account on your credit report since they will not pay the bill. The thieves could even open a bank account in your name and write bad checks.
Here are some of the ways identity thieves can get your personal information and take over your identity.
How identity thieves get your personal information:
- They steal wallets and purses containing your identification and credit and bank cards.
- They steal your mail, including your bank and credit card statements, pre-approved credit offers, telephone calling cards, and tax information.
- They complete a “change of address form” to divert your mail to another location.
- They rummage through your trash, or the trash of businesses, for personal data in a practice known as “dumpster diving.”
- They fraudulently obtain your credit report by posing as a landlord, employer, or someone else who may have a legitimate need for—and a legal right to—the information.
- They get your business or personnel records at work.
- They find personal information in your home.
- They use personal information you share on the Internet.
- They buy your personal information from “inside” sources. For example, an identity thief may pay a store employee for information about you that appears on an application for goods, services, or credit.
How identity thieves use your personal information:
- They call your credit card issuer and, pretending to be you, ask to change the mailing address on your credit card account. The imposter then runs up charges on your account. Because your bills are being sent to the new address, it may take some time before you realize there’s a problem.
- They open a new credit card account, using your name, date of birth, and Social Security number. When they use the credit card and don’t pay the bills, the delinquent account is reported on your credit report.
- They establish a phone or wireless service in your name.
- They open a bank account in your name and write bad checks on that account.
- They file for bankruptcy under your name to avoid paying debts they’ve incurred under your name, or to avoid eviction.
- They counterfeit checks or debit cards, and drain your bank account.
- They buy cars by taking out auto loans in your name.
To minimize the risk of identity theft, follow these recommendations from the FTC:
- Before you reveal any personal information, find out how it will be used and whether it will be shared with others.
- Pay attention to your statements. If your bills don’t arrive on time, contact your creditor. A missing credit card bill might mean that an identity thief has changed your billing address and is using your account.
- Guard your mail from thieves. Pick up your mail from your mailbox as soon as possible. Place outgoing mail in post office collection boxes.
- Do not give out personal information over the phone or through the mail unless you have initiated the contact and know with whom you are dealing. Thieves may pose as bankers, government officials, or others to get you to reveal your Social Security number or bank account number.
- Keep items with personal information safe. When you throw away receipts, credit card applications, and old checks or statements, make sure to shred them.
- When you make up your PIN for your credit, ATM, or debit card, don’t use something a thief might guess, such as birth date, Social Security number, or phone number.
- Order a copy of your credit report at least once a year. Catch mistakes and fraud before they ruin your personal finances.
Note: Some issuers of credit cards are now offering identity theft insurance as an optional benefit for card holders. This type of insurance will cover losses incurred, up to certain amounts, resulting from identity theft. If you opt for this insurance, review the policy carefully before signing up. Most importantly, don’t assume an identity theft insurance policy means you can stop safeguarding your personal financial information.
The FTC recommends the following actions if you believe you are a victim of identity theft. You can also call the FTC’s Identity Theft Hotline at 877-ID-THEFT (877-438-4338).
Take action immediately! Keep records of your conversations and all correspondence:
- Contact the fraud department of the three major credit reporting agencies. Tell them you are an identity theft victim. Ask them to place a “fraud alert” in your file. This alert means that any company that checks your credit will know that your information was stolen, and will therefore have to contact you by phone to authorize the extension of new credit. This will prevent anyone from continuing to illegally (without your knowledge or consent) use your credit. Ask the credit reporting agencies for a copy of your credit report. They must give you a free copy of your report if it is inaccurate because of fraud.
- Contact your creditors about any accounts that hae been changed or opened fraudulently. Ask to speak with someone in the security or fraud department.
- File a report with your local police. Get a copy of the police report so you have proof of the crime.
