There are many ways in which identity theft can occur, and only some of them are well known. Identity theft occurs when a person utilizes another individual’s personal identifying info, such as their name, social security number, or driver license number, to commit fraud or other illegal activities. The phrase identity theft has been coined from the phrase id queue, which translates to “identity steal.” But there are many more ways in which an individual can become a victim of ID theft, including through:
Mail and Telephone Fraud; This is perhaps the most common type of id theft protection. Often, an individual will receive threatening or fraudulent emails or letters that appear to be from their bank, or from someone they should know. Often, these emails or letters include a subject line that includes the words “bank account” or “account number.” While there are many companies that provide identity theft protection, it is important for a victim to remember that there are no national or state laws that require banks to monitor any online transactions or provide a phone number for reporting any suspicious activity. It is up to each individual to make sure that any information sent or received is reported to the proper authorities or used in fraud prevention.
Phishing is when an individual to be an employee of the bank or financial institution where the victim maintains accounts. While these accounts may have money in them, the thief will typically use the victim’s name or social security number to open fake credit accounts and then tries to gain access to the homeowner’s credit. There are many warning signs that indicate that an account has been accessed by a phishing caller, but should anyone ever notice any of the following:
Tax return fraud; A growing number of tax return fraudsters are using identity theft to steal financial information. While the tax code and several states have laws prohibiting this type of behavior, it can be difficult to catch the perpetrator. In some cases, tax-return fraud can be discovered simply by looking through documents that were filed. The most common way that tax return criminals use bank accounts is to open multiple accounts in someone’s name and then use those accounts to discharge their tax debt.
Credit card misuse; In the age of credit cards, a thief can easily obtain credit cards with cash, leaving a trail of evidence in the form of an altered or stolen credit card. To prevent identity theft protection services from becoming involved in a credit card fraud case, many banks and financial institutions are now requiring that any issued credit cards are held on file for at least six months before being used. This means that even if someone purchases a gift for themselves with a stolen credit card, the transaction cannot go through until the appropriate ID Theft Prevention Service provider is contacted.
Experian; Equifax and TransUnion. These three credit bureaus keep tabs on all reported identity theft cases. The information they report to the three major credit bureaus helps them detect any fraudulent activity going on. They are required to provide detailed reports each year to the consumer so that they can monitor their records and take appropriate action. If you are having trouble with identity theft protection service providers, try looking up your Experian, Equifax or TransUnion reports and reviewing them for missing items or wrong information.
