How Does Identity Theft Work?

With ID theft on the rise, it’s important to understand how does identity theft work, so that you can better defend yourself against it.

ID thieves can use your identity for their benefit in numerous ways:

• They can use your SSN to open multiple lines of credit. Most retailers offer credit cards and even Visa or Master Card accounts based solely on SSN. All the ID thieves have to do is complete a one page credit application using your stolen SSN.
• They can claim social benefits, medical benefits and even unemployment benefits in your name.
• They can establish phone services, internet, cable & even utility services using your identity.
• They can open bank accounts in your name and write bad checks.
• They can apply for personal loans and even car loans in your name.
• Some ID thieves such as runaway criminals or illegal immigrants can even lead a full life as someone else!

When the bills and statements aren’t paid, you are left with debts that aren’t yours, not to mention the ruined credit.

The Old Fashioned Way:

• Stealing your wallet is the easiest way to get your SSN, drivers’ license number and much more.
• Stealing your mail is also very common with ID thieves. They can steal Bank & Credit Card statements directly from your mailbox, or complete a “change of address” form and have your mail redirected to them!
• People you know (friends, colleagues at work, your neighbors or even a family member) can go thru your private stuff. In fact, friendly fraud is on the rise for many years in a row!
• Rummaging through your trash for discarded personal data in very popular with ID thieves. Your workplace’s garbage or home dumpster can yield gold for them.

Online Identity Theft:

• Email Phishing (or vishing) is the most popular online scam. ID thieves send you an email form from what looks like a legitimate mail address (e.g. your bank, cc company etc., but in fact is very far from), requesting you to follow a link and fill your information such as SSN, address, back accounts & more for “security” reasons. If you follow that link (which you SHOULD NOT), it will direct you to a site that may look just like your Banks/CC company. Needles to say – it is not. You land at a site build by the ID thieve for the purpose of stealing your information!
• Phone scams are very similar. The ID thieve calls you and identifies himself as your Bank’s or Credit Card Company’s security officer. He informs you that “someone” has tried to use your account or credit card (or any other bogus problem). He then asks you to “verify” some personal information, requesting you to disclose him your information.
• More recent Internet scams are even more aggressive, and actually make use of flaws within trusted websites to secretly redirect the unknowing victims to a falsified replica of a trusted financial organization’s website. It’s very hard for customers to avoid these scams.
• Corporate Database Breaches are also responsible for a large number of stolen identities cases. Over 900 data breaches have been reported by major firms over a period of 3 years, resulting in a total of 200 million records being compromised!

If they insist, hang up the phone, call the Bank/CC Company and ask to speak with the security department.