Identity Theft

Overview

Identity theft is a crime that involves the deliberate use of another individual's identifying information, typically as a method to gain financial advantage or obtain credit and other benefits in the other person's name, and perhaps to the other person's disadvantage or loss. The person whose identity has been assumed may suffer adverse consequences, especially if they are held responsible for the perpetrator's actions. Identity theft occurs when someone uses another's personally identifying information, like their name, identifying number, or credit card number, without their consent, to commit fraud or other crimes.

Types of Identity Theft

Identity theft can be categorized into two broad types: true name and account takeover. True name identity theft means the thief uses personal information to open new accounts. The thief might open a new credit card account, establish cellular phone service, or open a new checking account to write bad checks. Account takeover, on the other hand, involves the criminal "taking over" existing accounts. This usually involves the criminal changing the mailing address on an account and running up a huge bill before the person whose identity has been stolen realizes there is a problem.

Methods of Identity Theft

Identity thieves use a variety of methods to steal your personal information, including:

1. Dumpster Diving: They rummage through trash looking for bills or other paper with your personal information on it. 2. Skimming: They steal credit/debit card numbers by using a special device when processing your card. 3. Phishing: They pretend to be financial institutions or companies and send spam or pop-up messages to get you to reveal your personal information. 4. Changing Your Address: They divert your billing statements to another location by completing a change of address form. 5. 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 from their employers, or bribe employees who have access.

Impact of Identity Theft

Identity theft can have severe consequences for individuals who are unfortunate enough to be victims of this crime. Victims may not only lose money directly, but may also be left with a bad credit record that can take years to repair. In addition, victims often spend a significant amount of time and effort to clear their names, and they may also suffer emotional distress.

Prevention of Identity Theft

While it is impossible to completely prevent identity theft, there are several steps that individuals can take to minimize their risk. These include regularly monitoring financial accounts and credit reports, using secure internet connections, creating strong passwords, and being cautious about providing personal information.

Legal Aspects of Identity Theft

In many jurisdictions, identity theft is a criminal offense, with penalties ranging from fines to imprisonment. In addition, victims of identity theft may also have legal rights to pursue civil actions against the perpetrators.