What is identity theft? |
There is a new face for fraud in the information age and it’s called identity theft. Identity theft is when someone steals your identity to obtain credit, loans and mortgages, establish utility accounts, and so on. The impostor uses these accounts to defraud you out of thousands upon thousands of dollars.
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Here are some ways that identity thieves work: |
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They open new credit card accounts, using your name, date of birth, and Social Security number. When they use the credit card and don’t pay the bills, the delinquent account is reported on your credit report.
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They call your credit card issuer and, pretending to be you, change the mailing address on your credit card account. Then, your imposter runs up charges on your account. Because your bills are being sent to the new address, you may not immediately realize there's a problem. |
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They establish cellular phone service in your name.
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They open a bank account in your name and write bad checks on that account.
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Thieves commonly look for social security numbers, driver license numbers, and mother’s maiden names. While there are many ways these thieves can obtain this information, the following is a listing of the most common.
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Stealing a victim’s purse, wallet, or mail to obtain personal information.
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"Dumpster diving” is the practice of digging through someone’s garbage to find discarded personal information such as credit card bills or offers for new credit cards.
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Dishonest employees tap into customer and employee files to steal social security numbers along with other information.
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Retail employees who double swipe a consumer’s credit card to use the second magnetic swipe to create a new purchase.
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“Shoulder surfing” at an ATM to get PIN codes.
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Using phony Internet sites to entice consumers to provide them with their personal information.
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What is being done to combat this epidemic? Recently the House of Representatives passed a bill, 84-0, that would require anyone found guilty of identity theft to face up to 5 years in prison as well as fines which could total up to $100,000 depending on the severity of the theft. While this legislation is currently pending, many believe that the bill will pass and become law.
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