| Identity theft is one of those crimes that most | | | | opened. Again, this does not usually happen until after |
| people have heard of, but not everyone understands | | | | the criminal has disappeared and/or moved on to |
| how it occurs. The act of committing this malicious | | | | victimize another person. |
| crime may be simple or complex, and can bring great | | | | * You receive calls or notices about merchandise you |
| financial pain to its victim. Don't let that victim be you. | | | | did not buy. |
| Identity theft occurs when a person uses another | | | | * Debts appear on your credit reports that you did |
| person's identity as well as personal financial | | | | not file. This is significant. Even though the criminal |
| information as their own. Purchases are typically | | | | might have your statements mailed to a different |
| made using the identity of the victim, with the intent | | | | location, you know your personal information and can |
| to leave the victim responsible for the bill. This crime | | | | check your credit report at any time. The criminal has |
| is done without the knowledge of the victim. When | | | | no way to stop you from doing this. |
| the victim finally becomes aware of the crime, the | | | | AS you might imagine, identity theft is a nightmare |
| criminal has disappeared into oblivion, leaving behind a | | | | come to life for the millions of people who have |
| victim with ruined credit, a mountain of debt, and a | | | | fallen victim to this horrendous crime. Sadly, despite |
| tainted reputation. Not a pretty situation to be in. | | | | stricter financial transaction processes, higher public |
| In extreme cases, the implications of identity theft | | | | awareness of the crime, and the imposition of state |
| can result in the wrongful arrest of the victim. On the | | | | and federal laws, the number of identity theft victims |
| face of the evidence, it is easy for the police | | | | continues to rise each year. |
| investigator to assume that the victim made multiple | | | | In the United States and Canada, many people have |
| expensive purchases having absolutely no intention of | | | | reported unauthorized persons withdrawing funds |
| ever paying. Criminals who engage in identity theft | | | | from their personal bank or financial accounts. More |
| are clever and know the credit card system | | | | serious cases have seen victims reporting a thief |
| intimately. They know ways of charging far more | | | | who has totally taken over their identities. In these |
| than a credit limit on a single card. Without actual | | | | cases, thieves have run up huge debts and |
| proof that identity theft has occurred, it can be | | | | committed crimes, all under the name of the victim. |
| assumed that the victim is guilty of the crimes | | | | The United States Congress created a new federal |
| committed under his name. Identity theft is a serious | | | | law against identity theft in 1998. In spite of the |
| crime, and victims can suffer the implications and | | | | tough laws now on the books, identity theft is more |
| consequences of the crime for years to come. | | | | prevalent than ever. Once you have fallen victim, it is |
| Identity theft takes many different forms. Some | | | | obviously too late to prevent the crime from being |
| cases involve a thief repeatedly withdrawing large | | | | committed against you. In this instance, grandma was |
| sums of cash from another person's bank account, | | | | right: an ounce of prevention is worth a pound of |
| until the account balance is nil. Other cases may | | | | cure. And that is an understatement. |
| involve the thief assuming another person's name and | | | | Here are some steps to help you avoid being a victim |
| using their personal information to obtain a loan. | | | | of identity theft. |
| Armed with the victim's personal data, an identity | | | | 1. Shred any documents with personal information on |
| thief can obtain a driver's license, open new lines of | | | | them. Thieves are known to dig through household |
| credit and bank accounts, and even buy a car and | | | | trash to find this information. Shred it to foil their |
| get a mortgage. All paperwork, bills and financial | | | | attempts. |
| statements from these transactions are sent to the | | | | 2. Be vary careful about giving out your social |
| thief's temporary address, so the victim initially does | | | | security number. Guard it like you would guard your |
| not know that a crime has been committed in his | | | | life, because in a sense, you are guarding your |
| name. Once the plan has been activated, the thief | | | | financial life. Only give it out when absolutely |
| uses the victim's credit line for all it is worth in the | | | | necessary, and only to parties that are entirely |
| form of cash advances, loans and credit card debt | | | | trustworthy. |
| without the intent to pay. All of these crimes occur | | | | 3. Be careful about storing personal financial data on |
| with the thief hidden in a shroud of anonymity. Who | | | | your computer and sending it over the internet. Use |
| is the criminal? All merchants assume he who he | | | | passwords that do not make any sense. Most people |
| represents himself to be, but he is representing | | | | use their birthdays, names of children, or other |
| himself to be the victim. The actual identity of the | | | | easy-to-guess types of passwords. Don't make it |
| criminal isn't revealed. When the debts come to light, | | | | easy for a criminal to get into your account info |
| the victim is left holding the bag of bills and the thief | | | | electronically. |
| has long since disappeared into complete anonymity. | | | | 4. Never place your tax return in your mailbox, |
| It can take years to recover, both financially and | | | | stamped, with the flag up to let the postman know |
| emotionally, from identity theft. | | | | to pick up mail! Criminals are known to drive around |
| Here are some warning signs that you may have | | | | neighborhoods during tax season looking for flags. |
| fallen victim to identity theft: | | | | Your tax return contains vital financial information. |
| * You are billed for a credit card that you did not | | | | Always bring it to the post office to mail it. |
| open, although wiser criminals will not have the bill | | | | 5. Check your credit report regularly. Sign up for a |
| sent to you. | | | | plan if necessary. However, make sure that your |
| * There are unauthorized notice charges on your | | | | inquiries will not be counted against your credit score. |
| credit card statement. | | | | Too many inquiries in a short period will negatively |
| * Bills or credit statements fail to arrive when you | | | | affect your score, so make certain that your own |
| expect them. This can indicate that the address has | | | | inquiries to verify the safety of your file will not be |
| been changed without your knowledge. The criminal | | | | counted against you. |
| does not want you to be aware while he is in the | | | | Our personal records are stored in many different |
| process of using your accounts, so he has the | | | | places in today's world. Banks, hospitals, employers, |
| statements sent somewhere else, by going through | | | | government agencies, brokerage accounts, etc. all |
| the proper change of address procedures. | | | | have our vital financial information within their records. |
| * Unauthorized transfers or withdrawals show on | | | | Put into practice these five steps above, and only |
| your bank statements. This is a huge red flag and | | | | give your information to companies that you fully |
| should be investigated immediately. | | | | trust. By doing so, you'll greatly decrease the odds |
| * Collection agencies call about accounts you never | | | | that you'll fall victim to identity theft. |