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Identity Theft is the term used to describe when someone, without your consent or knowledge, uses your personally identifying information to commit fraudulent or criminal acts.

Your personally identifying information includes items such as your name, your Social Security number, your credit card number, and driver's license number. The fraudulent acts that the thieves could perform include obtaining a loan or mortgage, filing a tax return, gaining employment, receiving medical benefits, committing a crime, or obtaining other merchandise and services using your good name without your knowledge or consent. Frequently, victims don't know their Identity has been stolen until they are contacted by a debt collector.

How does your Identity get stolen?
Identity thieves may use a variety of methods to collect your personally identifying information. They could :

  • Steal your wallet or purse.
  • Steal your mail, both incoming and outgoing. Items such as pre-approved credit offers, new checks, and credit information are particularly appealing to the identity thief.
  • Rummage through your trash for bills, mortgage statements, tax returns, and anything with personal information.
  • Scam you, via email, phone, mail, or in person, by posing as financial institutions and the like.
  • Skimming your credit/ATM card information by attaching their own card reader to ATM machines and capturing your information as you slide your card through.
  • Fill out a 'change of address' form at the Post Office to collect your mail and rifle through it at their leisure.
  • Obtain your personal information under false pretenses from financial institutions and other companies that you have an account with (and where they would have some of your personally identifying information in their records).
  • Obtain your credit report by posing as an employer.

What do thieves do with your stolen identity?
Identity thieves may use your personal information in a variety of ways :

  • Credit Card Fraud
    • Opening new credit card accounts in your name
      Thieves can use your personal information to open up one or more credit card accounts in your name but with a different address. As they use the cards and neglect to pay the bills, the credit card account will appear on your credit report as delinquent.
    • Changing the billing address on your current credit card(s)
      Thieves can use your current credit card and make purchases which runs up the debt on that account. Since you aren't receiving the bills, it may be some time until you realize the problem.
  • Phone Fraud
    • Opening a new telephone or wireless account in your name
  • Utilities Fraud
    • Using your name to establish utility service, such as power, gas, and cable, without your knowledge at locations other than your home
  • Bank Fraud
    • Using your name and account number, the thief can create counterfeit checks and make purchases that draw on your bank account
    • Opening a new bank account in your name and writing bad checks against it
    • Cloning your ATM card and making withdrawals against your account
  • Finance Fraud
    • Taking out a loan in your name
  • Government Document Fraud
    • Requesting issue of a driver's license or ID card in your name with their photo
    • Using your information to file a fraudulent tax return
  • Government Benefits Fraud
    • Using your name and Social Security number to receive government benefits
  • Other Fraud
    • Taking a job using your Social Security number.
    • Renting a home using your name.
    • Receiving medical services using your name.
    • Submitting your personal information to authorities during an arrest. Once the thief skips their court date, an arrest warrant is issued in your name.

Warning signs that your identity may have been stolen.
Signs that your identity may have been compromised include :

  • Contact from bill collection agencies for overdue debts that you have never incurred
  • Evidence, on your credit report, of accounts you didn't open, inaccurate account information, and items that don't make sense to you
  • Evidence of debts on your current accounts that you cannot explain
  • Difficulty in applying for a mortgage or car loan due to issues with your credit history
  • Failure to receive bills and other expected financial information in the mail
  • Receiving credit cards that you did not apply for
  • Receiving mail regarding jobs you've never held and homes you've never bought/rented

We highly recommend that you monitor your accounts and credit report on a regular basis. Remaining vigilant will help you recognize a problem early and limit the damage it could cause.

Myths & Facts
  • Identity Theft is a credit problem.
    • Actually, only about 20% of Identity theft originates with your Credit. According to national statistics about 80% of identity theft resides in areas that may never impact your credit report.
  • Checking my Credit Report will protect me from Identity theft.
    • Your credit report is a tool used by creditors to determine the likelihood you will be a risk if they extend you credit. Unfortunately it really has little value as an indicator of Identity Theft. Due to loopholes within the system fragmented files make it easy for thieves to create synthetic identity theft and you may never know about it.
  • Fraud Alerts will protect me.
    • Actually that is highly unlikely. While fraud alerts are a preventive measure they are not a failsafe and can only be utilized if you have reason to believe you are a victim of identity theft. According to the FTC anywhere between 20% and 50% of fraud alerts are ignored. Fraud alerts will also only protect you from true name identity theft. Because the alert is placed on your credit file, synthetic identity theft will go undetected. Victims have access to seven year fraud alerts.
  • Credit Freeze prevents identity theft.
    • Yes! A credit freeze will prevent approximately 15% of identity theft 12% of the time. It will protect you from true name identity theft for any new credit account typically. The drawback is that costs about $10.00 per bureau (3) to freeze your credit and then another $10.00 per bureau (3) to unfreeze your file when you want to apply for that same as cash shopping special. That’s $60.00 if you’re counting. Now, let’s say for the sake of argument that you can get it unfrozen, or thawed, in time to take advantage of the sale of a lifetime (usually a certified letter as well as two forms of id or proof of residency are required…then you wait for the response) it’s going to cost you another $30.00 to freeze it again. So let’s review…you spent $30 to freeze, $30 to thaw and $30 to freeze again so now we are up to $90.00. What’s that? You’re married! Sorry my mistake that will be $180.00 for you and your spouse.
  • E-statements are not safe.
    • Actually paying bills and doing online banking is safer than mailing checks from home. One of the easiest and most common ways for thieves to get all the information they need is to look out for the red flag at the end of your driveway. Also by checking your accounts online you have an opportunity to catch fraud earlier. According to the latest Javelin study the average financial loss to identity theft victims who use paper statements was over $4500 while those who use e-statements was $551. In fact the Better Business Bureau recommends using online banking and bill pay over traditional methods.