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Identity Theft
How Identity Theft Occurs
Identity theft occurs when someone uses your personal identifying information to commit fraud or theft, for example when an identity thief uses your personal information to illegally open a credit card account in your name. Identity theft is the fastest growing crime in America, impacting more than nine million people each year. The more you know about this prevalent crime, the better prepared you will be to protect yourself.
Identity thieves can get hold of your personal information in a variety of sneaky and illegal ways. Identity theft is a significant white collar crime nationwide, striking one in every four U.S. households over the last five years and nearly 10 million victims last year alone, according to a recent study by the Federal Trade Commission. According to the FTC, 52% of identity theft victims detected fraudulent activity by reviewing their own credit reports. Industry experts agree that the earlier fraud can be detected, the better the chances of minimizing the financial impact of the crime.
Stay Alert for the Signs of Identity Theft, such as:
· Accounts you didn't open and debts on your accounts that you can't explain.
· Fraudulent or inaccurate information on your credit reports, including accounts and personal information, like your Social Security number, address(es), name or initials, and employers.
· Failing to receive bills or other mail. Follow up with creditors if your bills don't arrive on time. A missing bill could mean an identity thief has taken over your account and changed your billing address to cover his tracks.
· Receiving credit cards that you didn't apply for.
· Being denied credit or being offered less favorable credit terms, like a high interest rate, for no apparent reason.
· Getting calls or letters from debt collectors or businesses about merchandise or services you didn't buy.
What will Identity Thieves do with your Identity?
Identity theft is fundamentally about stealing enough information about you, the victim, to create a clone convincing enough to trick an organization into providing the thief a service, a product or a loan in your name.
The stolen information will then either be used by the thief to obtain money in your name or, particularly in cases of Internet identity theft, will be traded with other thieves, often on sophisticated online networks at the other side of the globe.
According to victims of identity theft, some of the things thieves will do with stolen identities are:
· Open new credit card accounts
· Open new checking or savings account
· Make charges on an existing credit card account
· Create checks using false information
· File for bankruptcy using your name
· Open new phone service in your name
· Open a new cable TV or energy utility account
· Get a driver's license
· Buy cars by taking out auto loans in your name
· Obtain a personal, student, auto or business loan
· Commit a crime and your information to the arresting office
The Federal Trade Commission (FTC), Reports these Identity Theft Statistics:
· 50% of victims had a credit card opened in their name
· 16% of victims had a bank account opened in their name, or had unauthorized withdrawals made from their account
· 25% of victims had a new telephone, cellular, or another service established in their name
· 9% of victims had a loan obtained in their name
· 8% of victims had a driver's license or other fraudulent document created in their name
Review your Credit Report Today!
Privacy advocates advise consumers to protect themselves from identity theft and related crimes, by checking their credit reports twice a year, shredding personal documents before throwing them away and cleansing wallets of old receipts and printed social security numbers.
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