What is identity theft?
How do thieves steal an identity?
What do thieves do with a stolen identity?
How can you find out if your identity was stolen?
How long can the effects of identity theft last?
What should you do if your identity is stolen?
Should you file a police report if your identity is
stolen?
How long can the effects of identity theft last?
What can you do to help fight identity theft?
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.
The FTC estimates that as many as 9 million Americans
have their identities stolen each year. In fact, you or
someone you know may have experienced some form of
identity theft.
The crime takes many forms. Identity thieves may rent an
apartment, obtain a credit card, or establish a
telephone account in your name. You may not find out
about the theft until you review your credit report or a
credit card statement and notice charges you didn’t
make—or until you’re contacted by a debt collector.
Identity theft is serious. While some identity theft
victims can resolve their problems quickly, others spend
hundreds of dollars and many days repairing damage to
their good name and credit record. Some consumers
victimized by identity theft may lose out on job
opportunities, or be denied loans for education, housing
or cars because of negative information on their credit
reports. In rare cases, they may even be arrested for
crimes they did not commit.
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How do thieves steal an identity?
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. For more information about pretexting, click
here.
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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 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 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.
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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. For more
information, visit the
Detect Identity Theft
section.
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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What should you do if your identity is
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. To learn more
about these steps and more, visit the
DEFEND: Recover from Identity Theft
section. To file a complaint,
click here.
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Should you file a police report if your
identity is stolen?
A police report that provides specific details of the
identity theft is considered an Identity Theft Report,
which entitles you to certain legal rights when it is
provided to the three major credit reporting agencies or
to companies where the thief misused your information.
An Identity Theft Report can be used to permanently
block fraudulent information
that results from identity theft, such
as accounts or addresses, from appearing on your credit
report. It will also make sure these
debts do not reappear
on your credit reports. Identity Theft Reports can
prevent a company from continuing to
collect debts that
result from identity theft, or selling them to others
for collection. An Identity Theft Report is also needed
to place an
extended fraud alert
on your credit report.
You may not need an Identity Theft Report if the
thief made charges on an existing account and you
have been able to work with the company to resolve
the dispute. Where an identity thief has opened new
accounts in your name, or where fraudulent charges
have been reported to the consumer reporting
agencies, you should obtain an Identity Theft Report
so that you can take advantage of the protections
you are entitled to.
In order for a police report to entitle you to the
legal rights mentioned above, it must contain specific
details about the identity theft. You should file an
ID Theft Complaint
with the FTC and bring your printed ID Theft
Complaint with you to the police station when you file
your police report. The printed ID Theft Complaint can
be used to support your local police report to ensure
that it includes the detail required.
A police report is also needed to get copies of the
thief’s application, as well as transaction information
from companies that dealt with the thief. To get this
information, you must submit a request in writing,
accompanied by the police report, to the address
specified by the company for this purpose. You can find
more information and a model letter
here.
How long can the effects of 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. Victims should review their credit reports once
every three months in the first year of the theft, and
once a year thereafter. Stay alert for other signs of
identity theft.
Don't delay in correcting your records and contacting
all companies that opened fraudulent accounts. Make the
initial contact by phone, even though you will normally
need to follow up in writing. The longer the inaccurate
information goes uncorrected, the longer it will take to
resolve the problem.
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What can you do to help fight identity
theft?
A great deal.
Awareness is an effective weapon against many forms
identity theft. Be aware of how information is stolen
and what you can do to protect yours, monitor your
personal information to uncover any problems quickly,
and know what to do when you suspect your identity has
been stolen.
Armed with the knowledge of how to protect yourself
and take action, you can make identity thieves' jobs
much more difficult. You can also help fight identity
theft by educating your friends, family, and members of
your community. The FTC has prepared a collection of
easy-to-use materials to enable anyone regardless of
existing knowledge about identity theft to inform others
about this serious crime. To learn more,
click here.
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