Free Annual Credit Report

Identity theft happens when someone uses your personal information to pose as you while committing fraud. It’s typically done for economic gain. A thief will use your social security number, drivers license, credit cards and other details about your life in many ways. For example, they may open new credit card accounts or loans in your name. They can steal money from your bank account. They may rent a home using your credit standing.

There are many methods through which identity thieves can use your confidential information for their benefit. Unfortunately, they can severely damage your credit and have long-lasting financial impacts on your life. In this article, you’ll discover how thieves can get their hands on your information, the potential damage they can cause and how to prevent having your identity stolen.

How Thieves Steal Your Identity

There are dozens of ways that would-be identity thieves can swipe your sensitive information. Some rummage through your garbage. They look for bank statements and discarded credit card applications. Other thieves simply steal wallets and purses hoping to find social security cards and credit card information. Still others steal your mail and change the billing address for your credit cards and bank statements.

What is Identity Theft?

A growing problem involves a tactic called “phishing.” Thieves use spam email to masquerade as your financial institution. By making up a story about security breaches or necessary account verifications, they coax unsuspecting consumers into providing their account numbers and passwords.

Potential Damage

The damage that results from having your identity stolen can be severe. Thieves will use your information to open credit card accounts in your name. Within days, they’ll charge thousands of dollars in purchases, leaving you to pay the bill. Often, they’ll purchase a new wireless phone in your name. They’ll make hundreds of calls that accrue charges that you’ll have to pay.

Other ways thieves use your information include opening loans based upon your credit. When they fail to make payments, your credit is tarnished. Alternatively, they’ll gain access to your bank account and begin writing a series of fraudulent checks. Some thieves will use your identity (and credit) to rent houses, get jobs and even receive medical procedures. Each of these things can harm your credit and siphon money from your accounts.

How To Protect Your Identity

Identity theft protection involves constant monitoring of your financial details. For example, you need to review your free annual credit report on a regular basis. You need to analyze your bank and credit card statements monthly (though weekly might alert you to fraudulent activity more quickly). You should be shredding documents that you throw away. Also, try to have your name and mailing address removed from junk mail lists. If you notice unfamiliar activity in one of your accounts, you need to establish fraud alerts at the 3 primary credit bureaus. Taking these steps (among others) is a critical part of securing your identity from thieves.

Living Without Fear

Everyone is vulnerable to identity theft. It can literally happen to anyone. Celebrities such as Steven Spielberg and Oprah Winfrey have had their identities stolen. The key is taking the necessary steps to ensure that your identity is safe. Many people diligently scan their statements and review their credit reports regularly. They proactively opt out of junk mailing lists to reduce the number of pre-approved credit card applications they receive.

Other people prefer to spend their limited free time with their families and friends. For them, hiring the services of companies such as LifeLock or Identity Truth is a better option. Those companies take care of the small details that can make the difference between a secure credit standing and devastating financial loss. Consider your options. Whichever you choose, the security of your identity is in your hands.