Identity Theft: The Basics

The best way to understand how digital ID protection can help you is to first understand the fundamentals of identity theft. Here are some identity theft basics.

Identity Theft Defined

Identity theft happens when an unauthorized party uses your personal information, like your credit card number, name, or social security number, for criminal purposes, such as fraud. Your personal information is like money to an identity thief because he/she can then buy or lease vehicles, open credit card accounts, and rent housing in your name. These fraudulent activities usually destroy the victim’s credit, which can take considerable money and time to repair.

The Types of Identity Theft

There are a number of ways identity thieves get their hands on your information:

• Dumpster diving – thieves comb through your garbage looking for documents containing personal identifying information
• Phishing – in email spam or pop-up ads, identity thieves charade as legitimate parties to dupe you into revealing your personal information
• Pretexting – under false pretenses, thieves contact your creditors to acquire personal information
• Skimming – thieves plant special storage devices that “skim” your credit/debit card number when you swipe your card
• Address change – thieves fill out a change-of-address form, thus routing your bills with your personal info to another address
• Old reliable – identity thieves glean personal information by stealing wallets, purses, checks, mail, or personnel documents from your employer

If Your Identity Has Been Stolen

The police offer a special report for this situation that is called an Identity Theft Report. File one and give as many details as you can about the theft. The next step is notifying your creditors to dispute any suspicious transactions and reviewing your credit reports for discrepancies. The sooner you act, the better. If you catch identity theft in the early stages, it’s much more likely that you will be able to restore your good name quickly. If you have any other questions please visit our frequently asked questions page.