What Are Identity Theft and Identity Fraud?

"But he that filches from me my good name/Robs me of that which not enriches him/And makes me poor indeed."
- Shakespeare, Othello, act iii. Sc. 3.

The short answer is that identity theft is a crime. Identity theft and identity fraud are terms used to refer to all types of crime in which someone wrongfully obtains and uses another person's personal data in some way that involves fraud or deception, typically for economic gain. These Web pages are intended to explain why you need to take precautions to protect yourself from identity theft. Unlike your fingerprints, which are unique to you and cannot be given to someone else for their use, your personal data ­ especially your Social Security number, your bank account or credit card number, your telephone calling card number, and other valuable identifying data ­ can be used, if they fall into the wrong hands, to personally profit at your expense. In the United States and Canada, 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 vast debts and committing crimes while using the victims's names. In many cases, a victim's losses may include not only out-of-pocket financial losses, but substantial additional financial costs associated with trying to restore his reputation in the community and correcting erroneous information for which the criminal is responsible.

What are the Most Common Ways To Commit Identity Theft or Fraud?

Many people do not realize how easily criminals can obtain our personal data without having to break into our homes. 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.
If you receive applications for "pre-approved" 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.

Taken from:
 http://www.justice.gov/criminal-fraud/identity-theft/identity-theft-and-identity-fraud

ID theft toll hits almost 10 million, costs $48 billion

This arcticle was taken from Scambusters.org.

Scamlines 42: New Scams Uncovered as ID Theft Toll Soars to 10m

Real estate and identity theft cons snare more victims, state falls for $2.5m trick

Real estate and identify theft scams provide the main focus for our new round-up of the scam headlines.
We have the latest figures on the scale of ID theft in the US and news of a sneaky trick using parking tickets to try to steal people's personal details. Phony jobs are also back on the scene, again as a route to getting hold of private information.
Among our real estate stories, we have a report of a scam that used forged home ownership documents to prey on victims and a worthless circular that supposedly details a free land giveaway.
In addition, there's a new tax refund trick about, a letter that tries to get parents to pay a fee for a student aid application, and the embarrassing story of how one state handed over $2.5m to scammers.

The scams: Although identify theft is a very difficult thing to measure, one new study from research outfit Javelin Strategy says that ID theft claimed 9.9 million victims in the US in 2008, costing $48 billion dollars.
Crooks also speed up the time it takes from theft to cashing in on it with stolen cards and other information. 71% of incidents take place within a week, up from just 33% previously.

Fake parking tickets lead to malware download

The scam: Drivers in Grand Forks, ND, discover parking tickets on their windshields, claiming some sort of violation. The "citations" detail a website that car owners are supposed to visit for more details and to pay the fine.

At the website, victims are told they need to install a toolbar to enable the incident to be processed. In fact, it downloads a Trojan horse virus that opens the way to identity theft.

The solution: This is a new one on us. Sneaky! Even though the scam starts out in the real world of a parking lot, it still leads to an online ruse to get you to download a virus.
Security software should alert you to this malware. But, anyway, don't download and install programs from people and organizations you don't know.
The "tickets" should have been checked out with law enforcement, or property owners if they were on private property.

Identity theft is the fastest growing crime, according to the Federal Trade Commission. Experts estimate that about 10 million people become victims each year. That means every minute, 19 people become new victims of identity fraud!
In fact, according to the US Department of Justice, drug trafficking is now being replaced by identity theft as the number one crime.
If you become a victim, it will probably take you hundreds of hours and an average of $1,000 to recover from ID theft. Even worse, some innocent victims have ended up in prison because identity thieves have committed crimes in their names.

Startling Facts About Identity Theft

---

Identity theft is perhaps the top fraud issue, but one aspect of identity theft is very prevalent, yet is rarely discussed: when Social Security numbers are stolen, not for profit, but to get a job.
In order to get many jobs, illegal immigrants need Social Security numbers (SSNs). Since they obviously can't apply for them from the Social Security Administration (SSA), they often buy a stolen SSN and use it to get work.

For example, MSNBC reported that a legal resident in the Chicago suburbs applied for a job at a local Target department store and was not hired because someone who had used her SSN already worked there.
That was bad enough, but further investigations uncovered that her SSN had been used to obtain work by 37 other employees, mostly illegal immigrants!
This is not unusual, according to ChoicePoint: the average number of times a SSN is used for this type of immigrant-based ID theft is 30 times.
Although no one knows the extent of the problem, here are some identity theft facts according to an article by Eduardo Porter in the New York Times last year:

• About seven million illegal immigrants are currently using stolen SSNs and paying Social Security taxes.
• Their payroll tax contributions could be as high as $7 billion a year.
• Their contribution to the Social Security system added about 10% of last year's surplus.
• Illegal immigrants see Social Security withholding taxes as a cost of working in the US.
• Each year, the Social Security Administration receives a very large number of W-2 forms with incorrect and sometimes fictitious SSNs; the withholding taxes from these incorrect SSNs are put in the "Earnings Suspense File," which totals over $189 billion.

It is illegal for the SSA to notify victims that their SSNs are being used by someone else. Naturally, neither the illegal immigrant nor the rightful owner of the SSN gets the benefits of the taxes withheld -- so billions of dollars are simply added to the general Social Security system each year.
Falsely using a stolen SSN is a felony in the US, and there is no question that this is a widespread problem.
Here is an even less known fact: many of the people whose SSN are stolen are children. Since many children don't use their SSN until they turn 18 to get a job, an illegal immigrant can often use their SSN for years without getting caught.

Unfortunately, illegal immigrants also sometimes fail to make credit payments, file for bankruptcy, and harm victims' credit in other ways. When the rightful SSN owners turn 18, they can have credit history problems, which results in being unable to get student loans, jobs or other kinds of credit.
However, even if there are no direct financial consequences to the victim, this is nonetheless not a victimless crime. It can take hundreds of hours to get everything straightened out -- and there is no guarantee that the SSN won't be stolen and used again.
(source http://www.scambusters.org/identity-theft.html).

Protect yourself now.

Skimming at ATMs

Watch these videos and protect yourself from these latest schemes that crooks are using to steal your information.

http://www.scambusters.org/skimming.html   and from Youtube.com






http://www.scambusters.org/skimming.html and Youtube.com

In today's world you have to take proactive steps to protect yourself.

Top 5 Tricks of Identity Thieves

Identity Theft is a major concern that everyone is becoming aware of.   Take a look at this video available from Yahoo.


Identity theft affects 9 million Americans each year. Knowing the most common methods identity thieves use could save your financial and medical health.

Stacy Curtin, Yahoo! Finance
Wednesday, September 29, 2010

http://financiallyfit.yahoo.com/finance/video-top-5-tricks-of-identity-thieves-22134215

Don't Become a Victim. Protect Yourself Today. Tomorrow May Be To Late.

What You Don't Know Can Hurt You!

How do thieves steal an identity?
Identity theft starts with the misuse of your personally identifying information such as your name and Social Security number, credit card numbers, or other financial account information. For identity thieves, this information is as good as gold.
Skilled identity thieves may use a variety of methods to get hold of your information, including:

1. Dumpster Diving. They rummage through trash looking for bills or other paper with your personal information on it.
2. Skimming. They steal credit/debit card numbers by using a special storage device when processing your card.
3. Phishing. They pretend to be financial institutions or companies and send spam or pop-up messages to get you to reveal your personal information.
4. Changing Your Address. They divert your billing statements to another location by completing a change of address form.
5. Old-Fashioned Stealing. They steal wallets and purses; mail, including bank and credit card statements; pre-approved credit offers; and new checks or tax information. They steal personnel records, or bribe employees who have access.
6. Pretexting.  They use false pretenses to obtain your personal information from financial institutions, telephone companies, and other sources. 

What do thieves do with a stolen identity?
Once they have your personal information, identity thieves use it in a variety of ways.
Credit card fraud:

• They may open new credit card accounts in your name. When they use the cards and don't pay the bills, the delinquent accounts appear on your credit report.
• They may change the billing address on your credit card so that you no longer receive bills, and then run up charges on your account. Because your bills are now sent to a different address, it may be some time before you realize there's a problem.

Phone or utilities fraud:

• They may open a new phone or wireless account in your name, or run up charges on your existing account.
• They may use your name to get utility services like electricity, heating, or cable TV.

Bank/finance fraud:

• They may create counterfeit checks using your name or account number.
• They may open a bank account in your name and write bad checks.
• They may clone your ATM or debit card and make electronic withdrawals your name, draining your accounts.
• They may take out a loan in your name.

Government documents fraud:

• They may get a driver's license or official ID card issued in your name but with their picture.
• They may use your name and Social Security number to get government benefits.
• They may file a fraudulent tax return using your information.

Other fraud:

• They may get a job using your Social Security number.
• They may rent a house or get medical services using your name.
• They may give your personal information to police during an arrest. If they don't show up for their court date, a warrant for arrest is issued in your name.

Taken From:  http://www.ftc.gov/bcp/edu/microsites/idtheft/consumers/about-identity-theft.html#Howdothievesstealanidentity

Protect Yourself!   Find Out How Not To Be A Victim.    Just Click the Link Below.

Startling Facts About Identity Theft

Identity Theft Resource Center®, Nonprofit Organization

Identity Theft Resource Center® (ITRC) is a nonprofit, nationally respected organization dedicated exclusively to the understanding and prevention of identity theft. The ITRC provides victim and consumer support as well as public education. The ITRC also advises governmental agencies, legislators, law enforcement, and businesses about the evolving and growing problem of identity theft.

Identity Theft is a crime in which an impostor obtains key pieces of personal identifying information (PII) such as Social Security numbers and driver's license numbers and uses them for their own personal gain. This is called ID Theft. It can start with lost or stolen wallets, pilfered mail, a data breach, computer virus, phishing, a scam, or paper documents thrown out by you or a business (dumpster diving). This crime varies widely, and can include check fraud, credit card fraud, financial identity theft, criminal identity theft, governmental identity theft, and identity fraud.

STARTLING FACTS ABOUT IDENTITY THEFT

• Identity theft is "an absolute epidemic," states Robert Ellis Smith, a respected privacy author and advocate. "It's certainly picked up in the last four or five years. It is nationwide. It affects everybody, and there is very little you can do to prevent it and, I think, worst of all—you can't detect it until it's probably too late."
• Some law-enforcement authorities call identity theft "the fastest growing crime across the country right now". In fact, identity theft is the most called-about subject on the Privacy Rights Clearinghouse's telephone hotline. "Most victims don't even know how the perpetrators got their identity numbers," says director Beth Givens. Such fraud may account for as much as 25% of all credit card-fraud losses each year.
• For the criminal, identity theft is a relatively low-risk, high-reward endeavor. Credit card issuers often don't prosecute thieves who are apprehended. Why? The firms figure it's not cost efficient. They can afford to write off a certain amount of fraud as a cost of doing business.

What Can I Do About Identity Theft And Fraud?
To victims of identity theft and fraud, the task of correcting incorrect information about their financial or personal status, and trying to restore their good names and reputations, may seem as daunting as trying to solve a puzzle in which some of the pieces are missing and other pieces no longer fit as they once did. Unfortunately, the damage that criminals do in stealing another person's identity and using it to commit fraud often takes far longer to undo than it took the criminal to commit the crimes.

What Are The Most Common Ways To Commit Identity Theft or Fraud?
Many people do not realize how easily criminals can obtain our personal data without having to break into our homes. 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.

Become proactive in protecting your good name.  Don't wait until you have become a victim to decide to do something.

Many a victim have thought "it won't happen to me," only to find out that it has happened to them.

Be Proactive - Protect Your Good Name!

Did You Know the Difference Between Credit Card Theft and Identity Theft?

Survey: 28% of ID theft victims know crime source

By Seamus McAfee

More than one out of four victims of identity theft know how their personal information fell into the wrong hands. The remaining 72 percent are left wondering just how their identity was compromised, says a new study by the nonprofit coalition Identity Theft Assistance Center (ITAC).
The survey interviewed more than 1,500 identity theft victims who were helped by ITAC after experiencing an identity theft crime. Of the 28 percent of respondents who did know the source of the theft, 26.5 percentsaid it was caused by friends, relatives and in-home employees who had access to their personal information. Computer-related theft was the next most common crime at over 21 percent, followed by lost or stolen wallets, checkbooks and credit card accounts, at over 15 percent. Breaches of data, such as in the recent compromise of the Heartland Payment Systems database, only accounted for 4.7 percent of identity theft cases.

Taken from CreditCards.com

Identity theft

From Wikipedia(View original Wikipedia Article) Last modified on 15 December 2010, at 02:53 

From Wikipedia

Identity theft is a form of fraud or cheating of another person's identity in which someone pretends to be someone else by assuming that person's identity, typically in order to access resources or obtain credit and other benefits in that person's name. The victim of identity theft (here meaning the person whose identity has been assumed by the identity thief) can suffer adverse consequences if he or she is held accountable for the perpetrator's actions. Organizations and individuals who are duped or defrauded by the identity thief can also suffer adverse consequences and losses, and to that extent are also victims.
The term identity theft was coined in 1964^[1] and is actually a misnomer, since it is not literally possible to steal an identity as such - more accurate terms would be identity fraud or impersonation or identity cloning but identity theft has become commonplace.

"Determining the link between data breaches and identity theft is challenging, primarily because identity theft victims often do not know how their personal information was obtained," and identity theft is not always detectable by the individual victims, according to a report done for the FTC.^[2] Identity fraud is often but not necessarily the consequence of identity theft. Someone can steal or misappropriate personal information without then committing identity theft using the information about every person, such as when a major data breach occurs. A US Government Accountability Office study determined that "most breaches have not resulted in detected incidents of identity theft".^[3] the report also warned that "the full extent is unknown". A later unpublished study by Carnegie Mellon University noted that "Most often, the causes of identity theft is not known," but reported that someone else concluded that "the probability of becoming a victim to identity theft as a result of a data breach is ... around only 2%".^[4] More recently, an association of consumer data companies noted that one of the largest data breaches ever, accounting for over four million records, resulted in only about 1,800 instances of identity theft, according to the company whose systems were breached.^[5]

A recent article entitled, “Cyber Crime Made Easy" explained the level to which hackers are using malicious software. As one security specialist named Gunter Ollmann said, “Interested in credit card theft? There’s an app for that.” This statement summed up the ease with which these hackers are accessing all kinds of information online. The new program for infecting users’ computers is called Zeus; and the program is so hacker friendly that even an inexperienced hacker can operate it. Although the hacking program is easy to use, that fact does not diminish the devastating effects that Zeus (or other software like Zeus) can do to a computer and the user. For example, the article stated that programs like Zeus can steal credit card information, important documents, and even documents necessary for homeland security. If the hacker were to gain this information, it would mean identity theft or even a possible terrorist attack. (Giles, Jim. "Cyber Crime Made Easy." New Scientist 205.2752 (2010): 20-21. Academic Search Premier. EBSCO. Web. 3 Oct. 2010.)

Credit card theft is when someone uses your card without your authorization.  And most credit card companies will protect after the first $50 fraudulent charges.  Identity theft is when someone assumes the usage of your name, posing themselves as you.  Are you protected against IDT?


Find out how you can have peace of mind click on the link below.

 

I am an Independent Associate and Group Benefit Specialist of Prepaid Legal Services, Inc.