Identity Fraud Safety

Your identity is valuable, especially if you've worked hard to build up a good financial history. The Federal Trade Commission (FTC) warns that you could be one of the 9 million Americans who have their identities stolen every year. Criminals have many ways to do this, so you must always be on guard for identity fraud and work hard to keep your information safe.

Definition

Identity fraud occurs when people steal your personal information. They can pretend to be you and fill out credit applications in your name if they get your name, address, phone number, driver's license data and Social Security number. Other information can be even more damaging. For example, they may be able to access your bank accounts if they find out your mother's maiden name or your personal identification numbers and passwords.

Process

Criminals use many methods to commit identity fraud, the FTC explains. It can be as simple as looking over your shoulder when you're using an automatic teller machine or paying for something with a credit card or as sophisticated as remotely installing monitoring software on your computer to capture passwords, bank data and other sensitive information. Identity thieves also steal mail, raid trash cans, set up phony websites and call or send you official-looking emails fishing for information.

Effects

Identity fraud harms you in many ways. A criminal may be running up various bills in your name without your knowledge, the FTC warns. This trashes your credit reports because the thief does not pay the bills. The creditor will come after you, filing suit for repayment or selling the accounts to aggressive collection agencies.

The thief may also get false identification in your name and cause other legal problems for you. For example, he might get a driver's license and run up unpaid tickets that are linked to your identity. You could face arrest if you are stopped by a police officer.

Prevention

You can prevent identity fraud by keeping your personal information safe. Shield credit cards, ATM cards and your driver's license when using them in stores. Carry them securely in your purse or wallet so you can't easily lose them. Refuse to give any personal information to telephone callers, no matter what your caller ID says. Criminals can easily alter caller ID information to look like they are calling from your bank or a legitimate company. Don't give personal information in response to an email or make purchases or fill out forms on unfamiliar websites. Check your credit reports regularly for suspicious activity through Annualcreditreport.com. This free website is affiliated with the federal government and gives you access to one report from Experian, TransUnion and Equifax every year, the FTC explains.

Solution

Immediately file a police report and put fraud alerts on your credit reports if you are a victim of identity fraud. You only need to contact one credit bureau and it will alert the others, Experian advises. Contact banks and creditors that have issued fraudulent accounts in your name and give them a copy of the police report. File disputes against any incorrect information on your credit reports. The bureaus all provide online forms so you can do this easily. Save the police report in case you are contacted by a lawyer or collection agency in the future about one of the fraudulent accounts.