How Identity Theft Happens

Regrettably, it isn’t just US citizens that have become victims of identity theft, but this type of fraud in other parts of the world is on the rise at a worrying rate too. Nonetheless, in America alone a computed fifteen million people have fallen victim to identity thieves per year – that is an identity stolen every 2 seconds!

Therefore, it wouldn't come as any surprise to learn that somebody that you know has become a victim of identity theft as the issue is truly quite widespread. You need to learn how identity theft happens and the different identity theft scams, so that you can protect yourself and that of your family.

Identity theft fundamentally involves personal information that is stolen in fraudulent and underhand manners. The information includes Social Security numbers, names, addresses, PIN numbers, and credit card numbers - this information is then used to commit crimes.  It is thus important to understand what identity theft is, how it happens, and then do your utmost to prevent it.

The commonest technique employed by identity thieves, and the least sophisticated, is to rummage through your garbage to find documents and bills containing your private information which can then be used by identity thieves to empty bank accounts and open new credit cards in your name. The solution is to completely shred any mail from banks, financial institutions, and even new credit card offers that contain valuable personal information - do not just throw it out in the trash.

Of course, before these financial statements or bills get into your hands, the identity thief can easily steal it right out of your mailbox. Invest in a secure and lockable mailbox – remember, an identity thief is looking for easier pickings; he doesn’t want to be standing out in the street trying to pick the lock on your mailbox.

Phishing is a term that is derived from the word “fishing” because the thieves are trying to bait you. If you receive emails that are supposedly from your bank or other financial institution asking for personal information, like your account information, it could be identity thieves phishing for your identity. If you click on the link in the email, you will arrive at a site that looks just like the official bank website. When you enter your personal details, the thief has just got hold of what he needs to commit theft or fraud in your name. Never click on links in emails; if in doubt, type the web address directly into your web browser.

Vishing comes from a combination of the two words, voice and phishing. The term is used to describe telephone fraud. When you answer the phone and somebody is claiming to be from your bank and they need certain personal information, it could be thieves that are vishing for fraudulent reasons. Ask for the persons name and then hang-up. Phone the financial institution concerned, and ask for the name that you were given to see if the call did originate from there

Spyware and malware (spy software and malicious software) is a computer program that installs itself on your computer. You may not know that you are infected as the program generally just sits in the background – silently collecting sensitive information from your hard-drive, like credit card numbers, passwords, social security number, etc. You need to install a security program that provides real time protection against spyware, malware, and anti-virus. Forget free programs, you need a paid product that provides automatic updates and real time protection.

A thief can get your credit card or ATM card information by skimming the information with a card reader which records the cards information. Thieves have been known to install their own card reader on ATM machines, but the most common instance of this type of crime is in establishments where you purchase something. Mostly it is in restaurants; the waiter takes your card to charge your bill, but generally this is done out of your sight, giving the thief a chance to easily skim your card. Never let your card leave your sight.

We have all heard of the perverts and creeps hanging around the social networking sites, like Facebook, Myspace, or Hi5. These types can be a threat to our children and we have to educate them to the dangers. But identity thieves are also hanging out in these networks trying to get you to divulge personal information. If you leave to much contact information and personal details, a thief can have many ways to communicate with you to try and get your social security number, for example.

It seams that nothing is safe nowadays; thieves have even started looking for medical treatment using someone else’s name and medical insurance information. The easiest way a thief can get this information is by stealing your wallet, but it has been known for them to hack into a hospital's or doctor's computer records. When someone gets treatment with your health insurance information, the thief's treatments will show up on your records, and the treatments will be taken out of your benefits. This could result in your own medical care being jeopardized and could disqualify you from acquiring new health insurance.

We are all at risk; from children, students, adults and senior citizens. In fact, identity theft protection isn't a requirement just for the wealthy and rich because every class of citizen must do something about keeping their identities safe and secure. It might indeed be extremely unwise to believe that identity theft will not affect you as it can and will sooner or later.

To be on the safe side, sign up with an Identity Theft Protection Service. They are quite cheap, often less than a dollar a day, but they can do so much more than you can do by yourself; things like Public Database Scanning, Credit Card Scanning, Social Security Number Scanning, Name & Address Scanning, Bank Account Number Scanning, plus a lot more besides.