Practically anyone who is born in this day and age will have a piece of information about him kept in a database somewhere. Your birthday, address, social security, tax identification, mortgage, school records, driving citations, credit application, loan application and even your prescription. There's always some form of data or information about us kept in some database somewhere. If those sets of information are assumed by someone else besides you then someone just practically stole your whole life and everything that goes with it--credit ratings included.
We take for granted a lot of information we give away in some forms, applications or even over the phone in a public booth. It never occurred to us that those pieces of information in the wrong hands can mean someone can assume our identity and do almost anything with it like apply for a loan, use our credit, subscribe for membership in clubs, or commit crime in our name.
Identity theft is defined by the ID Theft Act (18 U.S.C. § 1028(a)(7), 1029(e)) and by FTC Rule 16 C.F.R. § 603.2, and includes the misuse or attempted misuse of any identifying information – such as the SSN, biometric data, or an existing credit card account number - to commit fraud.
According to the Federal Trade Commission in its 2006 Identity Report "approximately 8.3 million U.S. adults discovered that they were victims of some form of ID theft in 2005."
In the United States alone it was estimated that 15 million people (or 1 in 20) have their identity compromised in 2006. The University of Texas - Arlington Alumni Association in 2006 believed that 100,000,000 people have been affected by losses of personal data in the last 20 months prior to November of that year. 5 million of these are from university losses so much so that Arlington Alumni Association enrolled their 130,000 alumni throughout the U.S. in an Identity Theft Protection service provided by LifeLock.
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Here are some relevant information from the United States Federal Trade Commission (FTC)
How do thieves steal an identity?
According to a Federal Trade Commission advisory, 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:
- Dumpster Diving. They rummage through trash looking for bills or other paper with your personal information on it.
- Skimming. They steal credit/debit card numbers by using a special storage device when processing your card.
- Phishing. They pretend to be financial institutions or companies and send spam or pop-up messages to get you to reveal your personal information.
- Changing Your Address. They divert your billing statements to another location by completing a change of address form.
- 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.
- Pretexting. They use false pretenses to obtain your personal information from financial institutions, telephone companies, and other sources.
What do thieves do with a stolen identity?
Once they have your personal information, identity thieves use it in a variety of ways.
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 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 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.
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.
Bank/finance fraud:
- 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 in 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 name but 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.
How can you find out if your identity was 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.
- 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.
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