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What Is Identity Theft?
"Identity theft" occurs when an unauthorized person wrongfully obtains and uses another person's personal information to commit fraud or deception, often for economic gain. Valuable information includes:
- Name.
- Date of birth.
- Social Security Number.
- Driver's license number.
- Credit card number.
- Bank account number.
What Are the Costs of Identity Theft?
Identity theft topped the Federal Trade Commission's (FTC) list of consumer complaints in 2005, the most recent year for which data is available. Identity theft complaints represented 39 percent of the 635,173 complaints filed. Internet-related complaints accounted for 53 percent of all fraud complaints.
Although victims are usually liable for no more than $50 of a credit or banking loss, they may spend years repairing a bad credit report and regaining financial health. According to the Privacy Rights Clearinghouse, some victims have difficulty getting credit, obtaining loans, renting apartments, and even finding jobs.
How Do Identity Thieves Get This Personal Data?
- Develop online scams or "phishing" questions.
- Steal business records.
- Pose as a person of authority to acquire data.
- Look over the victim's shoulder in public places.
- Rummage through trash.
- Steal wallets and mail.
- Submit a diversionary change-of-address.
How Do Identity Thieves Use This Personal Data?
- Obtain identification cards, birth certificates, social security numbers, and travel visas.
- Open new bank accounts.
- Change account billing addresses for accounts to prevent detection.
- Take out auto loans.
- Establish phone or wireless service.
- Give the victim's name to the police during an arrest.
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