How Identity Theft Can Affect Your Life

Most of us know that identity theft can lead to massive credit card charges showing up and the consequent headaches of trying to straighten out the mess. But did you know that some victims of identity theft can lose job opportunities, home or car financing, and educational loans as well? Sometimes ID theft victims are even arrested for crimes they didn't commit.

Approximately nine million Americans have their identities stolen each year, according to the FTC. And as technology continues to advance, identity thieves come up with new ways of stealing the information they need to mess up your life to their advantage.

Identity Stealing 101

You probably already know that a person's social security number, financial account information, and credit card numbers are the modern-day equivalent of finding a gold mine to an identity thief. But you might not know how many ways they have of getting this information:

*Trash to Treasure* - When you put that dumpster out at night for the next day's pickup, they'll dig through it to look for anything that has any of your personal information on it.
*Change of Address* - You didn't know you moved, did you? But your credit card company might think you have if an identity thief files a change of address form with them.
*Go Phish* - You might get an email from what looks like your bank or credit card company, designed to get you to click on a link within the email and reveal your personal information so the thief can then use it to access the real account. This is called "phishing."
*Skimmers* - A thief can use a special device to store the information contained on the magnetic strip of your card. When you go out to eat, your server could easily swipe the card through one of these devices while they're running the card for the restaurant. This is known as "skimming."
*False Pretenses* - A "pretexter" will contact you under false pretenses in order to get your personal information. One way thieves do this is by pretending to be doing a telephone survey on behalf of a research company. Once the information they want is in their hands, they can pretend to be you or your authorized representative and use the information to steal your money, your credit, or who knows what else?
*Stealing* - The original and formerly most popular way of stealing identities: grabbing your purse or wallet, or stealing your mail. Sometimes thieves steal customer or employee records to get the information they want.

The thieves themselves may only be the "middleman" in the theft. Sometimes they'll sell your information to somebody else, who then uses it to ruin your credit. But regardless of whoever actually uses the information, a number of types of fraud can result:

Credit card fraud - getting new credit cards in your name or changing the billing address on your credit card statements so you won't find out about the charges they've made for quite some time.
Financial fraud - writing fake checks from your account, opening a new account in your name and writing bad checks, draining your accounts by cloning your ATM card and making withdrawals, and/or getting a loan in your name.
Utilities fraud - using your name to get a cell phone, electricity, or cable television.
Other types of fraud - getting a government identification or driver's license in your name, using your social security number for employment or benefits, renting a home or apartment in your name, or using your information when they are arrested. If they are released on bail and then skip out on their court date, an arrest warrant could be issued with your name on it.

The most important thing to remember about identity theft is to be careful with your personal information. When you throw anything away, remember to shred anything that has any of your personal information on it. Be suspicious of emails that ask for such information, and never enter personal information into a form that you accessed through an email link. And think twice before giving your social security number to anyone. If you think you are a victim of identity theft, contact the FTC as soon as possible.