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Identity Theft

Identity Theft - What is it, Exactly, and are You at Risk?

by Wayne Wargo (PenWay.org)

With identity theft now more prevalent than ever and one of the fastest growing crimes in America, you need to have an increased awareness of security when it comes to your financial records and record keeping.

The Javelin Strategy & Research Center has been studying identity theft closely since 2004. Each year, they release their findings. Their 2009 study reveals that Identity theft is on the rise, affecting almost 10 million victims in 2008 (a 22% increase from 2007). For more information on this study and other need to know details, please click on the link above.

Identity theft occurs when your personal information is stolen and used without your knowledge to commit fraud or other crimes. A con artist appropriates another's name, address, Social Security number or other identifying information and uses that information to open new credit card accounts, take over existing accounts, obtain loans in the victim's name or steal funds from the victim's checking, savings, or investment accounts. One of the ways that identity thieves collect personal and financial information about members of the public offline, is to sift through carelessly discarded trash. Two good ways to prevent this is to either shred the document or black out all the pertinent information.

With your documents, it is possible that thieves could secure a job using your name and file fraudulent income tax returns, apply for travel documents, file insurance claims, Also consider that they could provide your name and mailing address to police and other authorities if involved in other criminal activities.

Federal law prevents identity theft victims from being held liable for the bills incurred by imposters. You as a consumer, however, can spend months, and even years, in repairing the damage to your good credit. Businesses are also greatly affected by this crime. They have given out goods and services with illegally obtained credit cards. With credit protection, as long as the victim can prove they didn't make the purchases, these businesses must write off the amount without ever recovering the merchandise.

A similar crime is identity fraud. A variety of abuses of the bankruptcy system, including the concealment of assets in bankruptcy, the making of false sworn financial statements in bankruptcy proceedings, and the filing of bankruptcies under false social security numbers are often dubbed "identity fraud" by prosecutors and government regulators.

Because of the rampant theft and abuse of people's credit histories, credit cards and social security, bankruptcy fraud has now become one of the biggest problems for the consumer. Fraudulent bankruptcy filings are affecting too many innocent people who have to deal with this problem, both financially and emotionally. You may think you're protected, but you may be surprised exactly how these criminals get your personal information. You have to remain aware at all times!

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Identity Theft - it's a serious crime, and how it can affect you