What is Identity Theft?

 

What is Identity Theft?

Identity theft is when your personal information is stolen and used by someone without your permission. There are many forms of identity theft, and each can affect you in different ways.

There is no foolproof way to fully protect yourself against identity theft. But if you’re diligent and willing to learn how your information can be compromised and what fraudsters can do, you’ll be better equipped to protect your data and act quickly if someone tries to steal it.

How does identity theft happen?

Identity theft is a broad term that applies anytime someone steals your personal information, such as a Social Security number, to create a new account, make a purchase, or commit other fraud.

Here are 10 common ways identity thieves can get hold of your data:

1. Data Breaches

A data breach occurs when someone gains access to an organization’s data without permission. Common types of information stolen in data breaches include full names, social security numbers, and credit card numbers. In 2018, there were 1,244 data breaches in the USA and more than 446 million records were exposed, according to the Identity Theft Resource Center. Because people have so many accounts with different businesses and other organizations, it’s virtually impossible to keep your information safe from a data breach. But there are steps you can take to reduce your risk.

2. Insecure Browsing

For the most part, you can browse the Internet safely. Browsing can be done safely, especially if you stick to reputable websites. But be aware that if you share any information on an unsecured website or a website compromised by hackers, you are putting your sensitive information directly in the hands of a thief. Depending on your browser, you may receive a warning if you try to access a dangerous website. Always browse websites with https. Or select locked websites. It is more secure.

3. The dark web

The dark web often ends up stealing your personally identifiable information. Hackers don’t need to steal your information to use for themselves. But choose to sell it to others with malicious intentions. The dark web is a hidden network of websites that cannot be accessed by normal browsers. People visiting the dark web use special software to hide their identities and activity. It is a haven for fraudsters. If your information ends up on the dark web market, anyone can buy it. Your identity can be put at greater risk.

4. Malware Activity

Malware is malicious software that is designed to cause havoc in all sorts of ways. Fraudsters can use malware. Stealing your data or spying on your computer activity can happen without your knowledge.

5. Credit Card Theft

The simplest form of identity theft is credit card theft. If thieves can gain access to your credit card information, they can use it to make unauthorized purchases. The most common ways credit card theft occurs are through data breaches, physical theft, credit card skimmers, and online retail accounts that store card information.

6. Mail Theft

Long before the Internet, identity thieves have been combing through the mail to find documents containing personal information. Bank and credit card statements and any document you send or receive through the postal system may be intercepted and used to gain access to your data. Even the mail you throw away can make you vulnerable. So be sure to shred any old mails that contain personal information.

For example, a fake email made to look like it’s from your bank might include a link directing you to a spoof website. It looks like an imitation. Once there, the website may ask for a username and password. Credit card information or your Social Security number can be entered. If something looks suspicious, it could be an attempt at identity theft.

8. Wi-Fi Hacking

If your computer or phone is used on a public network — such as Wi-Fi at an airport, department store or coffee shop — hackers may be able to “eavesdrop” on your connection.

This means that if you type in a password, bank account or credit card number, social security number, or anything else, an eavesdropper can easily intercept it and use it for their own purposes.

9. Mobile Phone Theft

Smart phones are a treasure trove of information for identity thieves. That can be a boon to identity thieves, especially if your apps allow you to log in automatically without a password or fingerprint. If someone tries to steal and unlock your phone, it allows them to view the information found in your apps, as well as your emails, text messages, notes and more.

Make sure your phone is locked with a secure passcode. Make sure biometric screening is set up correctly and your passwords are stored in plain text somewhere on your phone.

10. Card Skimming

Some identity thieves use a skimming device. It can easily be placed on a card reader at an ATM or fuel pump out of sight. When someone swipes a debit or credit card at a compromised machine, the skimmer reads information from the card’s magnetic stripe. Collect it. or pass it on to others for larger sums. Criminals can then use this information to make purchases.

How does identity theft affect you?

Once an identity thief has your information, he can do a number of things with it:

Fraudulent credit cards can be opened.

False health insurance claims can be filed.

You can use your existing bank or credit card accounts to make unauthorized purchases.

It can be sold to other thieves.

File a fraudulent tax return or your tax refund could be stolen.

Depending on the type of theft that occurs and how the criminal uses your information, identity theft can cause immediate financial loss, damage to your credit, and emotional distress. It may take from one day to several months or years to resolve this issue.

As you work to recover from identity theft, late payments, medical bills, fines, investigations and long-term assistance may be required if you are a victim of tax identity theft. This may result in loss of access to your account. Thieves can take over your personal accounts and lead to a general loss of data privacy.

How to check for identity theft?

You cannot completely avoid the possibility of your identity being stolen. But you can take action to spot potential fraud before it becomes a major problem.

As you review your report, look for tradelines you didn’t recognize or remember opening. Also, keep an eye on your credit score – if you see a sudden, unexplained drop, log out as soon as possible. Because there are chances that this is a scam network.

Here are some other signs that someone may have stolen your identity:

You get statements for items you didn’t order or for credit cards you didn’t sign up for.

Even if you have an excellent credit rating, you will be denied credit.

You now have unauthorized bank transactions or withdrawals.

You may receive notice that your personal information may have been compromised in a data breach.

Your electronic tax filing has been denied.

You will receive unofficial confirmation messages via text or email for unknown accounts.

From the organization, you’ll get an email saying your account was recently accessed and it’s ‘not you’.

You receive a bill or explanation of benefits for health care you don’t want.

What to do if you feel like a victim?

If you have notice that you have been the victim of an identity threat, the most important thing to do is to limit the potential damage. If a credit or debit card has been stolen, contact the card issuer and your bank immediately – some banks may even allow you to lock your account through your mobile app until you report the fraud.

Next, double-check your credit reports with the credit bureaus to confirm any unusual activity and seek help against identity theft. If you find something amiss, consider locking or freezing your credit.

Alternatively, you can set up a fraud alert. It tells lenders that you are a victim of identity fraud. So they may take extra steps to verify your identity.

Remember that identity theft is a crime. So it’s also a good idea to contact your local law enforcement agency. While the authorities can’t do much, they can take reports and alert you to suspicious behavior involving your name or address.

Before you report a crime, meet with the Federal Trade Commission to file a report. There, the agency provides the steps and documents you need to take to file other reports, including how to deal with police reports. And help you fight fraudulent charges legally.

Falling victim to identity theft is a very painful experience. Recovering your identity after it’s stolen, filling out forms, working with agencies and businesses can take hours or even longer.

Hard work is not wasted

Recognizing the signs of identity theft and taking steps to prevent it can save you heartache, stress, and loss.

While regularly checking your credit report and score, keep an eye out for suspicious transactions, accounts and notifications, and act quickly when something goes wrong. If you’re alert or diligent, you’ll be in a better position to catch identity theft before your transactions, accounts, and accounts are ruined.