Identity theft occurs when someone uses your personally identifying information, like your name, Social Security Number (SSN), or credit card number, without your permission, to commit fraud or other crimes. The FTC estimates that as many as 9 million Americans experience some form of identity theft each year.

The crime takes many forms. Identity thieves may rent an apartment, obtain a credit card, or establish a telephone account in your name.

When an identity thief tries to open a new credit account under your name, a credit inquiry will be posted to at least one of the three main credit bureaus. Credit monitoring services alert you within 24 hours of any change to your credit report, including these credit inquiries. The sooner you can be told about the potential identity theft transaction, the faster you can follow up with your credit monitoring service provider or the lending company to stop the identity theft before any actual damage is done to your credit. It can be very difficult to prove that your identity was stolen, and if you can’t prove it, then you will be responsible for paying off the loan even though you didn’t use any of the money. The results of this can be devastating to your credit, as well as your personal income.

 
How do thieves steal an identity?

Identity thieves use a variety of methods to steal your personal information, including:

• Dumpster Diving. They rummage through trash looking for bills or other paper with your personal information on it.
• Pre-approved Credit Card Offers. They steal your mail and apply for a pre-approved credit card offer that you received. If you want to minimize this risk, you can opt out from credit card offers.
• Skimming. They steal credit/debit card numbers by using a special storage device when processing your card.
• Phishing. They pretend to be financial institutions and send you messages to get you to reveal your personal information.
• Changing Your Address. They divert your billing statements to another location by completing a change of address form.
• Old-Fashioned Stealing. They steal wallets and purses; mail, including bank and credit card statements; and new checks or tax information. They steal personnel records, or bribe employees who have access.
• Pretexting.  They use false pretenses to obtain your personal information from financial institutions, telephone companies, and other sources. 

More information about identity theft can be found at the Federal Trade Commission Web site.