Methods and Consequences of Identity Theft
Identity theft is a rapidly growing problem in the US and many other countries. There are many victims who are desperately trying to rebuild their lives after an unknown person has taken everything from them. Identity theft is when someone uses your name, address, social security number (SSN), bank or credit card account numbers, or other identifying information without your knowledge. With this information, they can open accounts, commit fraud and other crimes, all in your name!
It seems the identity thieves are using this as a career and have a lot of experience at what they do. They may use various low-tech and high-tech methods to gain access to your personally identifiable information.
A person who wants to steal someone’s identity can obtain information from companies or institutions by stealing records from their employer, bribing an employee who has access to the records, swindling information from employees, or hacking into organizations’ computers.
A less glamorous way to steal an identity is to scavenge through garbage, corporate trash, or landfills in a practice known as dumpster diving.
Identity thieves obtain credit reports by abusing your employer’s authorized access to credit reports or by posing as a landlord, employer, or other person who may have a legitimate need for the information.
As your credit or debit card is processed, account numbers are stolen by identity thieves in a practice known as skimming.
They steal wallets and purses containing credit and debit cards, as well as identification.
Mail is stolen that includes bank and credit card statements, pre-approved credit offers, new checks, or tax information.
All they have to do is fill out a change of address form to have their mail diverted to another location.
And the most unsuspecting identity thief can scam your information by posing as a legitimate person or government official.
Unfortunately, there are many consequences for becoming a victim of identity theft. Once the thief has his personal information, he can go on spending sprees. Buy high-value items like computers (these can be easily sold) using your credit and debit account numbers.
It’s easy for an identity thief to open a new credit card account using your name, date of birth, and social security number. Needless to say, the thieves don’t pay the bill and the delinquent account is reported on your credit report.
The impostor changes the mailing address on your credit card account, so it will take some time before you realize there is a problem. By then, you’ve probably gotten auto loans in your name, too.
With your information, it’s easy for the impostor to set up phone or wireless service in your name.
Most likely, he will open a bank account in your name and write bad checks on that account. Another useful trick for them is to file bankruptcy in your name to avoid paying debts or eviction.
If you are arrested at any time, you can give your name to the police and when you fail to appear in court, an arrest warrant will be issued in your name.
So as you can see, it is very easy to become a victim and the consequences can be huge and take a long time to resolve. It is essential to do everything in your power to protect your identity from these thieves.