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   Preventing Identity Theft found in Money & Business  :  Personal Finance A   A   A
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How Identity Thieves Can Use Your Personal Information

Once someone has acquired your personal information, he or she can exploit that information in a variety of ways, ranging from simple fraud (intentional deception for personal gain) to criminal impersonation. Knowing how identity thieves might use your information is an important step toward defending yourself.

Make Purchases or Withdrawals

With only a limited amount of information in hand, a thief can exploit your existing bank accounts and run up debt or steal your cash.
  • Purchases: A thief can use your credit cards or checks to make unauthorized purchases. These fraudulent buying sprees may include expensive high-end items such as computers and other electronics, which the thief can quickly and easily resell for cash.
  • Withdrawals: A thief can withdraw money from your savings, checking, or investment accounts via ATMs, checks, online payments, or an electronic transfers.

Change Your Address

A thief can change your credit card billing or home mailing address by calling your credit card company or filling out a change of address form at the post office. Once your address has been changed, the thief can:
  • Prevent you from learning of fraudulent purchases and accounts right away
  • Collect the abundant personal information contained in your daily mail
  • Receive and respond to preapproved credit card offers
  • Receive new credit cards and checks that have been sent to you
  • Receive your tax refund, social security checks, or any other mailed income

Open New Accounts

An identity thief can use your Social Security number (SSN) and other identifying information to apply for and obtain new accounts in your name. Types of accounts thieves tend to open are:
  • Credit card accounts
  • Checking accounts
  • Car loan or other loan accounts
Thieves typically make account applications using a fraudulent address, preventing you from learning of the accounts’ existence right away. When these accounts go unpaid and become delinquent, a collection or repossession agency might be notified, and the delinquency will be recorded on your credit report.

Establish Services

Thieves can use your name, a fake address, and other personal information to set up service accounts, including:
  • Utilities (gas, electric, oil, water, etc.)
  • Cable or satellite television
  • Telephone or cell phone
  • Internet service
When the thief fails to pay, your credit can be damaged.

Create False Identification

The manufacture and sale of false identification is a thriving underground business. Thieves who want to create false driver’s licenses and IDs try to get access to breeder documents—documents containing personal information that can be used to create a variety of different types of false ID. The most sought-after breeder documents are:
  • Social Security cards
  • Birth certificates
  • Passports
Thieves can use these documents to commit various types of fraud, such as:
  • Altering or selling existing identification: Stealing your driver’s license or passport and then attempting to alter it, or selling it to someone who will alter it.
  • Creating counterfeit identification: Using the information in your documents to create authentic-looking identification using readily available technology, such as scanners and personal computers. These fake IDs most likely wouldn’t hold up to the scrutiny of a law enforcement officer but will easily get by a busy cashier untrained in security issues.
  • Obtaining fraudulent identification through a legitimate venue: Using your personal information and documentation to obtain a driver’s license or passport that shows the thief’s picture but your name.

Get a Job

Thieves who cannot secure employment with their own identity (due to a criminal record, illegal alien status, etc.) may try to secure employment using your name and SSN. When the employer reports the thief’s earnings to the IRS with your SSN, the government may think you’ve failed to report all of your income. If the thief files a tax return to obtain a refund, it will appear as though you’ve filed twice. The thief may also try to receive your Social Security benefits.

Use Your Name When Arrested

In rare cases, a thief may use your identity when stopped, questioned, or arrested by law enforcement. If the thief’s scam is successful, the consequences of the thief’s actions can affect you personally. For instance, if the thief receives a traffic ticket, the points can accrue on your license. Or worse, if the thief fails to show up for a court date, an arrest warrant could be issued in your name.
 
 
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