How ID Theft Happens

It's as important to guard against identity theft as it is to watch out for burglars.  A robbery is a pain, but someone stealing your identity could be even more of a hassle.  And if you've been robbed, you may be even more at risk of ID theft, since today's all too savvy thieves are likely to take check books and credit cards not to use them to get money out of your account but to open new accounts, take out loans, etc.  ID theft is a big problem.

So, aside from thieves breaking and entering, how does it happen?  Here are the major ways:

1. Dumpster Diving -- ID thieves rummage through trash looking for bills or other paper with your personal information on it (so make sure to shred all your identifying pieces of mail!)
2. Skimming -- This is when they steal your credit or debit card numbers by using a special storage device when processing your card.  While it's hard to keep your card in sight at all times (i.e. at restaurants), it's not a bad practice.  If you pay in cash at restaurants, you don't have to let your cards out of your sight.
3. Phishing -- You know those junk mails you get that seem to be from legitimate sites such as Paypal?  They're actually ID thieves hoping to get you to click a legitimate looking link to get your personal information.  To be on the safe side, if a link in your email takes you to a page that asks for your password or personal information, don't input it.
4. Changing Your Address -- Missing any mail?  Some identity thieves will divert your billing statements to another location by completing a "change of address" form at the post office.  If anything seems fishy with your mail situation, go down to the post office and see what's up.
5. Old-fashioned Theft -- If someone swipes your wallet, purse, mail, credit card statements, etc. assume an ID thief might be at work so take proper precautions.  Also be aware that cases keep showing up where people are stealing records from companies that employ large amounts of people (even government offices), so watch the news and be aware of this.

Comments

[fcheshire]

Good list.

People are so worried about someone entering their home that they install locks, cameras and security systems.

But as you pointed out...

The bad guys can get all they want from you PLUS MORE, by going thru your trash.

Do your self a favor and pick up a shredder. A decent one will cost $30 at walmart.

Next do not throw any junk mail away unless it is shredded. Why should you make it easy for the bad guys.

While a break in may cause a few sleepless nights...Identity theft can cause you heartache for years to come.

Frank

[Cyrus]

I never really thought about the change of address trick. I wonder why the post office doesn't require more ID when doing that?

[Mianderson]

It always amazes me how thiefs can come up with so many creative ways to rip you off. The best product I bought recently was my shredder