How does identity theft occur?

Identity theft occurs when someone uses your personal information, like your name and Social Security number or credit card number without your permission, to commit fraud or other crimes.

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How do ID thieves get personal information?

They get information from businesses or other institutions by:

• Stealing records or personal information while they’re on the job
• Bribing an employee who has access to these records
• Hacking these records
• Conning information out of employees

They also may:

• Steal your mail, including bank and credit card statements, credit card offers, new checks, and tax information.
• Rummage through trash in a practice known as "dumpster diving."
• Get your credit reports by abusing their employer’s authorized access to them, or by posing as a landlord, employer, or someone else who may have a legal right to access your report.
• Swipe your card for an actual purchase, or attach a skimming device to an ATM machine where you may enter or swipe your card.
• Steal your wallet or purse.
• Complete a "change of address" form with a creditor to divert your billing statement to another location.
• Steal personal information they find in your home.
• Steal personal information from you through email or phone by posing as legitimate companies and claiming that you have a problem with your account. Done online, this practice is known as "phishing;" on the phone, it’s called "pretexting."

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How do ID thieves use personal information?

They may:

• Call your credit card issuer to change the billing address on your credit card account. The imposter then runs up charges on your account. Because your bills are being sent to a different address, it may be some time before you realize there’s a problem.
• Open new credit card accounts in your name. When they use the credit cards and don’t pay the bills, the delinquent accounts appear on your credit report.
• Establish phone or wireless service in your name.
• Open a bank account in your name and write bad checks on that account.
• Create counterfeit checks or credit or debit cards, or authorize electronic transfers in your name, to drain your bank account.
• Take out an auto loan or student loan in your name.
• Get identification such as a driver’s license or state ID card issued in your name, with their picture.
• Get a job or file fraudulent tax returns in your name.
• Give your name to the police during an arrest. If they don’t show up for their court date, a warrant for arrest is issued in your name.

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What do I do first if I learn that my identity has been misused?

1. Contact the fraud department of any one of the three nationwide consumer reporting companies to place an initial fraud alert on your credit report. The fraud alert tells creditors to follow certain procedures to protect you before opening any new accounts or making certain changes to your existing accounts. A call to any of the three companies will do: the company you call is required to contact the other two so that they place an alert on their versions of your report, too. A victim of identity theft also is entitled to place an extended (7 year) fraud alert. You have to follow additional procedures to place an extended fraud alert. Once you place the fraud alert in your file, you’re entitled to order free copies of your credit reports from each of the three nationwide consumer reporting companies, and, if you ask, only the last four digits of your Social Security number will appear on the reports they send you.
2. Review your credit reports closely, and close the accounts that have been tampered with or opened fraudulently.
3. File a police report with your local police or the police in the community where the identity theft took place. Get a copy of the report or at the very least, the number of the report to submit to creditors and others who may require documentation of the crime.
4. File a complaint with the FTC. The FTC maintains a database of identity theft complaints which can be accessed by law enforcement agencies for investigations. You can report identity theft at ftc.gov/idtheft or by calling 1-877-ID-THEFT toll-free.

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What do I do if my personal information has been lost or stolen?

If you’ve lost personal information or identification, or if it has been stolen from you, taking certain steps quickly can minimize the potential for identity theft.

• Financial accounts: Close accounts, like credit cards and bank accounts, immediately. When you open new accounts, place passwords on them. Avoid using your mother’s maiden name, your birth date, the last four digits of your Social Security number (SSN) or your phone number, or a series of consecutive numbers.
• Social Security number: Call the toll-free fraud number of any of the three nationwide consumer reporting companies and place an initial fraud alert on your credit reports. An alert can help stop someone from opening new credit accounts in your name. For consumer reporting company contact information click here.
• Driver’s license/other government-issued identification: Contact the agency that issued the license or other identification document. Follow its procedures to cancel the document and to get a replacement. Ask the agency to flag your file so that no one else can get a license or any other identification document from them in your name.

Once you’ve taken these precautions, watch for signs that your information is being misused.

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How do I prove I’ve been a victim of identity theft?

Applications or other transaction records related to the theft of your identity may help you prove that you are a victim. For example, you may be able to show that the signature on an application is not yours. These documents also may contain information about the identity thief that is valuable to law enforcement. By law, companies must give you a copy of the application or other business transaction records relating to your identity theft if you submit your request in writing. Be sure to ask the company representative where you should mail your request. Companies must provide these records at no charge to you within 30 days of receipt of your request and your supporting documents. You also may give permission to any law enforcement agency to get these records, or ask in your written request that a copy of these records be sent to a particular law enforcement officer.

The company can ask you for:

• Proof of your identity. This may be a photocopy of a government-issued ID card, the same type of information the identity thief used to open or access the account, or the type of information the company usually requests from applicants or customers, and
• A police report and a completed affidavit, which may be the FTC’s Identity Theft Affidavit or the company’s own affidavit.

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