Frequently Asked Questions About Identity Theft

Identity thieves hope to gain access to people's personal and financial information in an attempt to defraud them of money and data. Many types of identity theft exist, with much of the crime instigated on the Internet; however, some thieves still steal identities by old-fashioned burglary and scam techniques. Many identity theft specialists work to invent new and smarter ways to combat identity theft, including high-tech devices such as iris scanners that can prevent access to items based upon a quick scan of the eye's iris. A few key questions can determine if you run the risk of identity theft.

How Does Identity Theft Happen?

Identity thieves steal personal information by using a wide variety of techniques. Old-fashioned techniques include burglary and rummaging through the garbage of potential victims to locate information such as Social Security Numbers and bank account data. Thieves also employ more modern techniques that include the use of storage devices to steal credit and debit card numbers while the card is being processed during a purchase. This technique is called skimming. Computer hackers and email phishers steal identities by illegally gaining access to personal computers and by sending emails with links that prompt the recipient to enter personal and financial information.

How Can Identity Theft Be Prevented?

Consumers should take care when prompted to provide their personal or financial information. Banks will not ask account holders for their account numbers when making an outbound call, as the institution already has that information on file. When consumers receive such a call, they should immediately hang up and not provide any information to the caller. Consumers should also provide as little information as possible on items such as personal checks, as these can be lost or stolen. The more information that an identity thief has, the greater his chances at stealing an identity. Always shred important and sensitive documents before placing them in the garbage to ensure that those rummaging for information cannot gain access to the data contained in the document.

What Should Be Done If An Identity Is Stolen?

Consumers victimized by identity theft should immediately contact a local law enforcement agency and file a police report. A police report may be required by those creditors that desire proof of the crime. The victim should also contact the major credit reporting agencies to place a fraud alert on the victim's credit report. This alert will safeguard against new credit accounts being opened in the victim's name. In addition, victims should contact the security department of each creditor that the identity thief opened accounts with to alert them of the crime committed against the assumed account holder.