Identity Theft 101: The Basics

To understand how best to lock out identity theft, it helps to first have a solid understanding of what identity theft is and how identity thieves operate. Here is the basic information you need to know.

What Identity Theft

When someone uses your personal information (e.g., name, social security number, credit card or bank account numbers) without permission to commit crimes, such as fraud, identity theft has occurred. This information is as good as money to identity thieves, who can then use your information to start credit cards, buy cars, or rent apartments, for example. Usually identity thieves wreck the victim’s credit and good name, and the victim must spend countless amounts of time and money trying to undo what the thief has done.

How Identity Thieves Steal Identities

Experienced thieves can access your personal information in any number of ways, including:

• Skimming – using a special storage device that skims your credit or debit card number when you use your card
• Dumpster diving – rifling through your trash for documents with any identifying personal information on them
• Changing addresses – re-routing your bills to another address by filling out a change-of-address form
• Phishing – masquerading as legitimate companies or financial institutions, thieves send spam emails or pop-ups to trick you into revealing sensitive information
• The old-fashioned way – stealing purses, mail, wallets, checks, or even personnel records from your job
• Pretexting – contacting your phone company, credit card company, or other financial institution under a false pretext to get personal information

What to Do if Your Identity Is Stolen

File an Identity Theft Report, which is a police report with specific details about the theft. Also notify your creditors, challenge any unauthorized transactions, and review your credit reports for any suspicious items. Take this action immediately—the longer you wait, the longer it will take to fix.

How to Lock Out Identity Theft

Awareness and prevention are two of the best weapons you can use to fight identity theft. Now that you are aware of how identity theft happens, you’ll want to take some preventive measures so this tragedy doesn’t happen to you. Most people are surprised to hear there are entire companies dedicated to helping you lock out identity theft. On the next page, learn how identity theft protection can guard your good name.