What is Identity Theft & How to Protects Yours

What Is Identity Theft & How to Protect Yours

The following information is Reprinted From: Federal Trade Commission's Website and explains how an identity thief might gain access to and make use of your personal and confidential information.

Most Common Techniques a Thief uses to Steal your I.D. & Ways to Protect Yourself?

Despite your best efforts to manage the flow of your personal information or to keep it to yourself, skilled identity thieves may use a variety of methods to gain access to your data.

They get information from businesses or other institutions by: stealing records or information while they're on the job, bribing an employee who has access to these records, hacking these records, conning information out of employees
They may steal your mail, including bank and credit card statements, pre-approved credit card offers, new checks, and tax information.

They may rummage through your trash, the trash of businesses, or public trash dumps in a practice known as "dumpster diving."

They may get your credit reports by abusing their employer's authorized access to them or by posing as a landlord, employer, or someone else who may have a legal right to access your report.

They may steal your credit or debit card numbers by capturing the information in a data storage device through a practice known as "skimming." They may swipe your card for an actual purchase or attach the device to an ATM machine where you may enter or swipe your card.

They may steal your wallet or purse.

They may complete a "change of address form" to divert your mail to another location.

They may steal personal information they find in your home.

They may steal personal information from you through email or phone by posing as legitimate companies and claiming that you have a problem with your account. This practice is known as "phishing" online or pretexting by phone.

What are the effects of identity theft?
Once identity thieves have your personal information, they use it in a variety of ways.

They may call your credit card issuer to change the billing address on your credit card account. The imposter then runs up charges on your account. Because your bills are being sent to a different address, it may be some time before you realize there's a problem.

They may open new credit card accounts in your name. When they use the credit cards and don't pay the bills, the delinquent accounts are reported on your credit report.

They may establish phone or wireless service in your name.

They may open a bank account in your name and write bad checks on that account. It’s not uncommon for offenders to open multiple accounts in multiple places and write bad checks on each.

They may counterfeit checks or credit or debit cards or authorize electronic transfers in your name and drain your legitimate bank account.

They may file for bankruptcy under your name to avoid paying debts they've incurred under your name or to avoid eviction.

They may rent a house or apartment and sign up for utilities in your name.

They may buy a car by taking out an auto loan in your name.

They may get identification, such as a driver's license issued with their picture, in your name.

They may get a job or file fraudulent tax returns in your name.
They may give your name to the police during an arrest. If they don't show up for their court date, a warrant for arrest is issued in your name.

 When should I give out my Social Security number?


Your employer and financial institutions will need your Social Security number for wage and tax reporting purposes. Other businesses may ask you for your Social Security number to do a credit check if you are applying for a loan, renting an apartment, or signing up for utilities. Sometimes, however, they simply want your Social Security number for general record keeping. If someone asks for your Social Security number, YOU ask;

• Why do you need my Social Security number?
• How will my Social Security number be used?
• How do you protect my Social Security number from being stolen?
• What will happen if I don't give you my Social Security number?
  

If you don't provide your Social Security number, some businesses may not provide you with the service or benefit you want. Getting satisfactory answers to these questions will help you decide whether you want to share your Social Security number with the business. The decision to share is yours .

I have a computer and use the Internet. What should I be concerned about?

You may be careful about locking your doors and windows and keeping your personal papers in a secure place. Depending on what you use your personal computer for, an identity thief may not need to set foot in your house to steal your personal information. You may store your Social Security number, financial records, tax returns, birth date, and bank account numbers on your computer.

These tips can help you keep your computer – and the personal information it stores – safe. Virus protection software should be updated regularly, and patches for your operating system and other software programs should be installed to protect against intrusions and infections that can lead to the compromise of your computer files or passwords.

Ideally, virus protection software should be set to automatically update each week. The Windows XP operating system also can be set to automatically check for patches and download them to your computer.

Do not open files sent to you by strangers or click on hyperlinks or download programs from people you don't know. Be careful about using file-sharing programs. Opening a file could expose your system to a computer virus or a program known as "spyware," which could capture your passwords or any other information as you type it into your keyboard.

Use a firewall program, especially if you use a high-speed internet connection like cable, DSL, or T-1 that leaves your computer connected to the internet 24 hours a day. The firewall program will allow you to stop uninvited access to your computer. Without it, hackers can take over your computer, access the personal information stored on it, or use it to commit other crimes. Use a secure browser – software that encrypts or scrambles information you send over the internet – to guard your online transactions. Be sure your browser has the most up-to-date encryption capabilities by using the latest version available from the manufacturer.

You can also download some browsers for free over the internet. When submitting information, look for the "lock" icon on the browser's status bar to be sure your information is secure during transmission.

Try not to store financial information on your laptop unless absolutely necessary. If you do, use a strong password with a combination of letters (upper and lower case), numbers, and symbols.

A good way to create a strong password is to think of a memorable phrase and use the first letter of each word as your password, converting some letters into numbers that resemble letters. For example, "I love Felix; he's a good cat," would become 1LFHA6c.

Don't use an automatic login feature that saves your username and password, and always log off when you're finished. That way, if your laptop is stolen, it's harder for a thief to access your personal information. Look for website privacy policies. They should answer questions about maintaining accuracy, access, security, and control of personal information collected by the site, how the information will be used, and whether it will be provided to third parties.

If you don't see a privacy policy or if you can't understand it, consider doing business elsewhere.