Components Of Identity Theft

Identity theft is a catch-all term for crimes involving illegal usage of another individual's identity. Identity theft may be used to facilitate crimes including illegal immigration, terrorism, and espionage, and it may also be a means of blackmail. ID Theft is a crime in which an impostor obtains key pieces of personal identifying information (PII) such as: social security numbers' driver's license numbers, address, employment, date of birth, etc. and uses them for their own personal gain. Identity theft is one of the fastest growing crimes in the United States, costing victims over $5 billion annually. According to the Federal Trade Commission, identity theft complaints are broken down as follows: About 50% reported that a credit card was opened in their name, 25% reported that the thief established new telephone, cellular, or another service in their name, 16% reported that a bank account was opened in their name, or unauthorized withdrawals had been made from their account, 9% reported that the thief obtained a loan in their name, and 8% reported that the thief obtained a fraudulent document such as a driver's license. The major components of identity theft follow.

Social Security

Social security numbers themselves create a special vulnerability. Social security numbers were first issued, in 1935, simply to track earnings and pension benefits. Social security numbers are now used to obtain national identification cards, jobs, open bank accounts, obtain insurance, or to apply for credit and loans. Unlike your fingerprints, which are unique to you and cannot be given to someone else for their use, your personal data especially your social security number, your drivers license, your bank account or credit card number, can be used, if they fall into the wrong hands, to personally profit at your expense. Sometimes more than one person uses the same social security number, either on purpose or by accident. If someone has misused your social security number or other personal information to create credit or other problems for you, social security cannot resolve these problems. Identity theft is much more than misuse of a social security number-it can also include credit card and mail fraud.

Credit

Credit card fraud is the most common type of identity theft, but is just one type of this fraud. You could be the victim of identity theft, where an imposter is using your personal information to obtain credit. If an identity thief is opening credit accounts in your name, these accounts are likely to show up on your credit report. As a result, your credit report is likely to contain negative information about your bill-payment history, and your credit score has probably been lowered considerably, making it difficult or impossible to obtain new credit yourself. Credit-rating services gather and disclosure personal and credit information to a wide business client base.

Banking

Banking fraud investigators have long known the importance of multiple phony social security numbers in the commission of bank crimes. In the United States and Canada, for example, many people have reported that unauthorized persons have taken funds out of their bank or financial accounts, or, in the worst cases, taken over their identities altogether, running up vast debts and committing crimes while using the victim’s names. The Secret Service investigates crimes associated with financial institutions, including bank fraud, access device fraud, telecommunications and computer crimes, fraudulent government and commercial securities, and electronic funds transfer fraud.

Insurance

There is a new type of identity theft occurring at startling rates: auto identity theft. Auto identity theft is when thieves go online and find Vehicle Identification Numbers (VIN) and copy them down. Not only can auto identity theft damage owners of the original VIN (since they can have loan payments for a car that is not theirs), but it can also damage the buyer. Most insurance companies run a credit score to help in the rating process of obtaining all kinds of insurance now. Identity thieves use this information to obtain lower insurance rates, and you will pay higher rates if your identity has been stolen and ruined.

Identity theft is becoming increasingly common and can result in significant damage to your personal and financial credibility and reputation, including for example, damage to financial credit history, difficulty in obtaining student educational or other loans, and poor credit that could impact future job opportunities. Identity theft also has adverse effects on the economy as a whole by making some people feel less confident about engaging in electronic transactions and by increasing the costs to consumers as businesses undertake additional measures to protect customers' personal data from identity thieves.

So What's In Your Credit Report Anyway?

A majority of folks think their credit report just contains a recent list of creditors listing outstanding loan balances and how fast or slow they are at making their payments.

Wrong.

Besides your name, address, date of birth, and social security number, your credit report has all of the following information in it:

• Three to five of the last known addresses you have ever lived and received bills at.
• Aliases or any other nick names or typos you have gone by.
• Your very extended credit history including closed accounts, your payment habits, and maximum credit limits extended to you.
• Notes that may have been filed by you or any of your creditors regarding disputes and or disagreements.
• Information on wage garnishment or liens against any of your assets for what ever reason, and maybe not always valid reasons. This may also include judgments and suits against you.
  
• Past and present employment information.
• Data on how many times your credit file has been looked at, when it was viewed, and by whom.

That's not all. Do you think any of that information may be valuable? That is why even insurance companies are now looking at credit in the form of a score (more to come on that later.) Imagine if either: (A) someone else got a hold of this very private information, or (B) someone else trashed this very valuable information by committing identity theft and fraud against you. Your credit and identity are your financial life blood. If it is getting tainted, you need to know immediately. If it is getting looked at by the wrong people, you need to know immediately. If someone made a mistake when reporting to the credit agencies, you need to know immediately.

What Really Happens To You After You've Been Victimized

Ten years ago it cost my father almost $10,000 to rectify a wrong that happened to him. Someone got hold of his social security # and applied for a credit card, telephone, electric, and cell phone with it. That was back when identity theft didn't even have a name for it yet. My father and I are both long term insurance and financial planner guys. Been doing it for 20 years myself, double that for my old man. Now let me tell you what happens to ID theft victims from a financial perspective.

1. What ever you pay for car and or homeowners insurance will skyrocket if you have to apply or reapply for it while your credit is in disarray.
2. Don't even think about applying for a loan, especially a home loan because you will not be able to afford the payments at the interest rates you will be quoted (double digit in most cases.)
3. Credit cards, including existing ones will start charging you rates that you do not have enough fingers and toes to count up to.
4. Your creditors all say "sorry to hear this happened to you and we'll work with you during it" but then start ignoring you when you try to get them to reverse the charges that were fraudulently made in your name.
5. You will ultimately have to hire an attorney for quite a bit of money to rectify the situation, and during this tumultuous period you better hope nothing else goes wrong; such as a medical emergency or your car dies.

Did I scare you yet? Hey, I'm just giving it to you based on past experience, no exaggeration here. Oh, did I mention that last year our small little insurance agency that we own together had over 100 identity theft inquiries of which some of them turned into insurance claims. In some States certain insurance companies offer an identity theft endorsement you may be able to add to your homeowners policy. This endorsement does nothing to help prevent identity theft or guard you in the future, but sometimes (depending on the company) it can help offset the financial burden you undoubtedly will experience if this happens to you.

I don't mean to sound negative today, I just really want my readers to understand that identity theft is not just a "soft crime" it can destroy a person or family if not caught in time. To learn how to start protecting yourself and your family today click here LifeLock

5 Steps To Help Prevent Identity Theft

1. When using your credit and debit cards at restaurants and stores, pay close attention to how the magnetic stripe information is swiped by the waiter or clerk. Dishonest employees have been known to use small hand-held devices called skimmers to quickly swipe the card and then later download the account number data onto a personal computer. The thief uses the account data for Internet shopping and/or the creation of counterfeit cards.
2. Keep a list or photocopy of all your credit cards, debit cards, bank accounts, and investments -- the account numbers, expiration dates and telephone numbers of the customer service and fraud departments -- in a secure place (not your wallet or purse) so you can quickly contact these companies in case your credit cards have been stolen or accounts are being used fraudulently.
3. Always take credit card receipts with you. Never toss them in a public trash container. When shopping, put receipts in your wallet rather than in the shopping bag.
4. Never permit your credit card number to be written onto your checks. It's a violation of California law (Civil Code sec. 1725) and laws in many other states, and puts you at risk for fraud.
5. Order your credit report at least once a year. Federal law gives you the right to one free credit report each year from the three credit bureaus: Equifax, Experian, and TransUnion. If you are a victim of identity theft, your credit report will contain the tell-tale signs – inquiries that were not generated by you, as well as credit accounts that you did not open. The earlier you detect fraud, the easier and quicker it will be to clean up your credit files and regain your financial health.

If you have not checked your credit report recently click this link for more information Get All 3 FICO Scores and Credit Reports!

Are You A Victim Of Identity Theft?

Introduction
Identity theft occurs when someone uses your personally identifying information, like your name, Social Security number, or credit card number, without your permission, to commit fraud or other crimes. In fact, you or someone you know may have experienced some form of identity theft. Identity thieves don't steal your money; they steal your name and reputation and use them for their own financial gain. They attempt to steal your future! Identity theft literally steals who you are, and it can seriously jeopardize your financial future. You may not find out about the theft until you review your credit report or a credit card statement and notice charges you didnt make or until you're contacted by a debt collector.

Result
Once they have your personal information, identity thieves use it in a variety of ways. Criminals use identity theft to fraudulently obtain identification cards, driver licenses, birth certificates, social security numbers, travel visas and other official government papers. An identity thief may obtain your identifying information by stealing credit card applications, bank statements, or checks from your trash or mail, finding your lost or stolen wallet or purse, hacking your credit card number from a corporate database, or stealing your information from inside a company that holds it.

• When they use the cards and don't pay the bills, the delinquent accounts appear on your credit report.
• You receive bills from a credit account you did not open.
• You see unauthorized charges on your credit, long distance, or bank accounts.
• You are contacted by a collection agency regarding a debt you did not incur.
• You are turned down for a credit card, loan, mortgage, or other form of credit due to unauthorized debts on your credit report.

Conclusion
Identity theft is the nation's fastest growing crime according to FBI statistics and identity theft/fraud is the fastest-growing category of Federal Trade Commission FTC complaints.While some identity theft victims can resolve their problems quickly, others spend thousands of dollars and many days repairing damage to their good name and credit record. The unfortunate reality of identity theft is that it is you, the victim, who is responsible for cleaning up the mess and re-establishing your good name and credit.

To learn more about how easily you can become a victim and how to prevent it Click Here!