Cause Of Identity Theft

By Alice Shown
Identity theft is a major problem, affecting over 9 million people in the United States every year, causing financial hardship, stress and possibly interfering with an individual's ability to buy a vehicle or a house. In some industries, such as financial services, brokerage and other fields, there are credit rating requirements to qualify for a job or secure a professional license. Individuals working in these fields can have their careers placed in jeopardy if their identities are stolen.

Identity theft begins when the thief steals the social security number, credit card numbers and other personal information from the victim of identity theft. This information can then be used for a wide range of fraudulent purposes, such as opening credit card accounts, renting apartments and purchasing big ticket items, such as expensive electronics, cars, vacations and more.

There are many ways thieves can get access to this sensitive personal information. These methods range from low to high tech. Some identity thieves get the information the old fashioned way by stealing it. This can be done by purse snatching or stealing your mail. Consider what is sitting in the mailbox, such as credit card statements, personal checks, pre-approved credit card applications and other financial information, all just waiting to be taken.

Another old fashioned, low tech way of getting an individual's personal financial information is stealing it from the garbage. Bank statements, bills, credit card statements, old tax records and other financial documents are often thrown in the garbage without being shredded first. This provides a prime opportunity for a thief to score big, right out of the garbage can.

Sometimes once a thief has stolen your information, either from your mail or your purse or wallet, they will have future billing information sent to a new address. This is often done simply by filling out the change of address area that appears on credit card statements and sending it in to the company. Once this is done, future statements are sent to another address or post office box.

In addition to these low tech methods, identity thieves have been getting increasingly high tech in recent years. The internet has opened new opportunities to steal credit card information. One common way this is done is known as phishing The thief sends emails pretending to be from PayPal or your bank. These urgent messages suggest that you may be the victim of theft and request that you immediately change your password by clicking on the link in the email.

Once you click on the link, you will see a page that looks very similar, or nearly identical to your financial institution page. Only when you enter your new information, the thief has all he needs to steal your identity. Many people are unaware of this for months and in that time, significant damage can be done to your credit rating.

Another way thieves acquire credit card information is a process known as skimming Small storage devices can be used to steal your information in restaurants, stores and fast food restaurants. This process involves an unscrupulous employee using a small, handheld device to swipe your credit card before processing your sale at the store or restaurant. The device captures the information from your card, which can then be used by the thief. Employees often sell this information to thieves for a price.