How to Prevent, Perceive, and Protect Yourself from Identity Theft

How to Prevent, Perceive, and Protect Yourself from Identity Theft
Abstract
What is Identity Theft? And the answer is that identity theft is a crime. Identity theft and identity fraud is the terminology used to refer to all types of crime which someone illegally obtains and uses another person's personal information in some way that involves fraud or deception, usually for economic gain. I will explain why you need to take precautions to prevent yourself from being a victim of identity theft. Unlike your fingerprints, which are unique to you and cannot be given to someone else for their use, but your personal data especially your Social Security number, your bank account or credit card number, and other valuable identifying data can be utilized, if they fall into the wrong hands, to personally profit at your expense. All over the country, for example, many people have reported that unauthorized persons have taken funds out of their bank or financial accounts, or, in the worst cases, taken over their identities altogether, running up enormous debts and committing crimes while using their victims's names. In many cases, a victim's losses may consist of not only out-of-pocket financial losses, but destroying your credit history, substantial financial costs associated with trying to restore their name and reputation in the community which they live, and correcting erroneous information the criminal is responsible for perpetrating. Although the number of incidents of identity theft/fraud has dropped and there are fewer victims, the remaining frauds are more difficult to detect and resolve, resulting in higher consumer costs. Please use my paper to equip yourself with proven methods to prevent, perceive, and protect you in the future from identity theft.

What is Identity Theft vs Identity Fraud? Most individuals are familiar with the term “identity theft,” which is widely used by media, government and consumer groups and by nonprofit organizations. However, it is important to distinguish between identity theft and identity fraud because the terms have different meanings, although Javelin uses identity fraud more commonly throughout the identity survey and corresponding reports.
True identity theft occurs after the exposure of personal information; typically someone’s personal information is taken by another individual without explicit permission. Identity fraud is the actual misuse of information for financial gain and occurs when criminals use illegally obtained personal information to make purchases or withdrawals, create false accounts or modify existing ones and/or attempt to obtain services such as employment or health care. Personally identifiable information (PII) such as a Social Security number (SSN), bank or credit card account number, password, telephone calling card number, birth date, name and address can be used by criminals to profit at a victim’s expense.
By accessing and using relatively basic information, a criminal can take over existing financial accounts (existing card fraud or existing non‐card fraud) or use a victim’s personal information to create new accounts (new account fraud). A criminal can commit identity fraud numerous ways, including making an unauthorized withdrawal of funds from an account or making fraudulent purchases with a credit card and creating new accounts (banking, telephone, utility, loans). All of which can have a damaging effect on an individual’s credit. In fact, the first notification that fraud has been committed might be the appearance of an unfamiliar account on a credit report or contact from a debt collector. How Does Identity Theft Happen?
Many people do not realize how easily criminals can obtain our personal data without having to break into our homes. Many identity thefts occur through traditional methods such as stolen wallets and “friendly frauds,” in which a person known to the victim has access to statements or other legal documents. Identity theft occurrences are often the result of simple lost or stolen information and not necessarily through hacking or elaborate Internet schemes, although online and mobile threats are viable.
In public places, for example, criminals may engage in "shoulder surfing" watching you from a nearby location as you punch in your telephone calling card number or credit card number or listen in on your conversation if you give your credit-card number over the telephone to a hotel or rental car company.
Even the area near your home or office may not be secure. Some criminals engage in "dumpster diving" going through your garbage cans or a communal dumpster or trash bin -- to obtain copies of your checks, credit card or bank statements, or other records that typically bear your name, address, and even your telephone number. These types of records make it easier for criminals to get control over accounts in your name and assume your identity.
If you receive applications for "preapproved" credit cards in the mail, but discard them without tearing up the enclosed materials, criminals may retrieve them and try to activate the cards for their use without your knowledge. (Some credit card companies, when sending credit cards, have adopted security measures that allow a card recipient to activate the card only from his or her home telephone number but this is not yet a universal practice.) Also, if your mail is delivered to a place where others have ready access to it, criminals may simply intercept and redirect your mail to another location.
In recent years, the Internet has become an appealing place for criminals to obtain identifying data, such as passwords or even banking information. In their haste to explore the exciting features of the Internet, many people respond to "spam" unsolicited E-mail that promises them some benefit but requests identifying data, without realizing that in many cases, the requester has no intention of keeping his promise. In some cases, criminals reportedly have used computer technology to obtain large amounts of personal data.
With enough identifying information about an individual, a criminal can take over that individual's identity to conduct a wide range of crimes: for example, false applications for loans and credit cards, fraudulent withdrawals from bank accounts, fraudulent use of telephone calling cards, or obtaining other goods or privileges which the criminal might be denied if he were to use his real name. If the criminal takes steps to ensure that bills for the falsely obtained credit cards, or bank statements showing the unauthorized withdrawals, are sent to an address other than the victim's, the victim may not become aware of what is happing until the criminal has already inflicted substantial damage on the victim's assets, credit, and reputation.

What Can You Do to Prevent, Perceive, and Protect? Protecting yourself from identity theft takes proactive effort. You can't simply assume it's not going to happen to you and go on about your life -- it can happen to anyone. It even happens to celebrities. Oprah Winfrey, Tiger Woods, Robert De Niro and Martha Stewart have all had their identities stolen. While you can't ever totally protect yourself from these thieves, you can at least make yourself less attractive as a victim by doing what you can to make it more difficult for them to access your information. Here are some things you can do to protect yourself:
DON'T give out your Social Security number unless it is absolutely necessary. Many companies collect more information than they really need. Make sure that it's something they have to have and make sure they'll protect your privacy.
DESTROY any unwanted credit card offers. This means rip, shred, burn, whatever you can do. These pre-approved offers come almost daily. If you don't want the three major credit bureaus to sell your name to these companies, you can "opt out" by either writing to the three major credit bureaus or by calling (888) 5OPTOUT (567-8688). This will remove your name, for two years, from mailing and telemarketing lists that come from TransUnion, Equifax, Experian, and INNOVIS. You can also write to the Direct Marketing Association's mail preference service to have your name removed from some mailing lists.
DON'T put any other information besides your name and address on your checks, and keep a close watch on your checkbook both when you're writing checks and when it is lying around. Someone can memorize your name, address and phone number during the short time it takes you to write a check.
SHRED (cross-cut) any sensitive documents before you throw them into the trash. This may seem like an extreme measure, but dumpster diving happens all the time and turns up a lot more personal information than you may realize.
DON'T carry your Social Security card, passport, or birth certificate in your wallet or purse. Also, only carry as many credit cards as are absolutely necessary. It has also been suggested that you photocopy everything you carry in your wallet to make canceling things easier in the event that your wallet is stolen.
REVIEW your credit report every year to make sure there haven't been any new credit cards or other accounts issued (to someone other than you) and to make sure there haven't been inquiries by people you haven't initiated business with. There are also services you can subscribe to (such as CreditExpert) that will alert you to any changes in your credit file.
NEVER give out personal information on the phone to someone you don't know and who initiated the call. Often, scam artists phone unsuspecting victims pretending to be their financial services company and request information to be provided over the phone. Usually, the story is to "update records" or sell a product. Get their name, phone number and address, and then call them back at the number you have on file or that is printed on the statements you receive.
REVIEW your monthly credit card st atement each month to make sure there aren't any charges showing up that aren't yours. Also, make sure you get a monthly statement. If the statement is late, contact the credit card company. You never know when someone may have turned in a change-of-address form so they could make a few more weeks of purchases on your credit card without you noticing.
DON'T mail bills or documents that contain personal data (like tax forms or checks) from your personal mail box. Take them directly to the post office or an official postal service mailbox. It's too easy for someone to take mail out of your mailbox on the street. From there, they can dip your checks in special chemicals to remove the ink and then rewrite them to themselves!
If you're ever denied credit, FIND OUT WHY, especially if you haven't reviewed your credit report lately. This may be the first indication you get that someone has stolen your identity and is racking up charges in your name.
REACT QUICKLY if a creditor or merchant calls you about charges you didn't make. This too may be the first notice you get that someone has stolen your identity. Get as much information from them as you can and investigate immediately.
GUARD deposit slips as closely as you do checks. Not only do they have your name, address and account number printed on them, but they can also be used to withdraw money from your account. All a thief has to do is write a bad check, deposit it into your account and use the "less cash received" line to withdraw your money.