What Is Identity Theft?

Identity theft is a federal crime in which thieves steal highly sensitive personal and financial information such as your social security number, bank or credit card information, and user names and passwords stored on your computer. They use this information to open bank, loan, and credit card accounts in your name for their personal use and financial gain.

Types of identity theft

Identity theft rates are steadily increasing as more people are using the Internet and other electronic forms of communication to transmit sensitive data. While most banks and financial institutions take steps to protect consumers, it’s impossible to secure information completely. Some thieves use “old fashioned” methods to retrieve data such as rummaging through garbage cans that contain bank statements and other sensitive material, while others may intercept online activities to extract pertinent information.

By the end of 2006, 8.3 million Americans had reported identity theft crimes (nearly 5 million of whom did not know how an identity thief had acquired their private information). In the remaining cases, thieves had stolen personal data from information given by the victims themselves during retail transactions, by stealing purses or wallets, through stolen mail, by hacking into computer systems, or by stealing information from a company who had stored personal and financial data online.

Identity theft resources

The Identity Theft Resource Center (www.idtheft.org) is a non-profit organization providing support and education for consumers and victims. They classify identity theft into four main types: financial identity theft, criminal identity theft, identity cloning, and business/commercial identity theft. Each of these may be linked to other criminal activities and may also involve hacking computer systems, posing as an authority or company to obtain customer information, or even assuming someone’s identity temporarily to facilitate a transaction.

Trusted names in identity theft protection services:

• IdentityTruth
- IdentityTruth protects your entire identity, going beyond credit. Advanced technology analyzes data, pinpoints potential fraud, and helps you minimize your risk.


• LifeLock Identity Theft Services
- LifeLock provides a proactive identity theft service, specializing in the prevention of identity theft rather than the reporting of it.


• TrustedID
- TrustedID’s® mission is to proactively protect consumers against identity theft, especially as identity theft is the fastest growing crime in the United States. Our innovative flagship product – IDFreeze® - stops identity theft before it ever happens.

Being aware of the types of identity theft and how thieves acquire personal information will better enable consumers to protect themselves from this serious crime. To avoid becoming a victim of identity theft, familiarize yourself with the ways in which thieves attempt to steal your financial identity and then take steps to secure your private information from unauthorized access and use.