Identity Theft & Fraud: How Identity Theft is Committed

Identity theft is a crime that is committed when someone obtains your personal information and uses it without your permission to commit fraud or other crimes. They may use your personal information to obtain credit, make unauthorized purchases using your accounts, or use your identity to commit other crimes and avoid being caught.

There are many, many ways that thieves can obtain and use your personal information. The most common - and those that you can best protect against - are covered in the following sections.

Your identity can be stolen by someone physically taking your information:

• By stealing your wallet or purse;
• By stealing records or information from stores or businesses in which they work;
• By stealing your mail out of your mailbox, or by re-routing your mail by submitting a change of address on record with the post office or with your individual creditors;
• By rummaging through your trash to find discarded bills, financial statements, or other identifying information;
• By stealing information left sitting out in your home that can be found by visitors, contract workers, etc;
• By using electronic means (hacking, virus perpetuating, etc.) of stealing your personal information from your computer.

Your identity can also be stolen when you inadvertently give a thief your personal information:

• By providing your account numbers, social security number, driver's license number, passwords, or PINs to someone over the phone pretending to be someone you trust;
• By responding to fraudulent e-mails that appear to be from people or businesses you trust and providing personal information;
• By providing personal information on websites that appear to be legitimate but are actually run by thieves;
• By responding to postal mail that appears to be from a legitimate business or entity and providing personal information.

There are many other ways that fraud can be perpetrated but these are the most common schemes that identity theft thieves use, probably because despite all of the warnings consumers are given, they are still falling prey to these schemes. In short: thieves keep doing it because people keep falling for it.

For more information on these types of fraud, and how to prevent yourself from being victimized, click on the Next Topic link below.