Identity theft is on the rise where the offender gets your Social Security Number and other details and starts applying for credit cards or even making purchases for goods and services on your behalf. It can let them spend thousands on bills, not pay taxes they should have, or do something illegal that connects back to you. Well, how can a person open an account in your name when you never knew that such an account existed? What are the risks for this to occur? Here are a few possibilities.
Data Breaches Another way identity thieves obtain personal information is through the so-called data breaches, which are rather frequent. In the last ten years, hacks have been recorded in some of the largest firms; from retailers to social networking sites as well as credit bureaus to mention but a few. As noted in the case of, for example, the Target Corporation data breach, hackers obtained the names, social security numbers, dates of birth, etc., of individuals and proceeded to open accounts or lines of credit. At other times, no one will even know that a breach has taken place until one finds an account opened in his/her name.
Stolen Wallets and Mail Although not quite as high-tech, people can also ‘steal’ your identity by physically taking your wallet or snatching your mail if it contains any sensitive documents. If a criminal gains the opportunity to obtain items such as your driver's license, social security card, or statements of your banks and credit cards, one can easily be duped over the phone or online into thinking the imposter is the real you. The effectiveness of their operation rises if they can get their hands on bank accounts and routing numbers. ID theft is real and one should always report lost identification to the relevant authorities.
'Pre-Approved' Credit Offers Credit card advertisements and loans are often sent to many people with information stating that they have been approved for the card or that they will get approval upon applying. Although most of them are genuine, identity thieves can complete the same applications and forward them to credit-granting institutions in your identity to open other accounts that you never authorized. Usually, they assume control immediately after the account has been created which may mean you do not even notice until the account is already listed as delinquent or when collectors come after you. Destroying pre-approved financial mailings can also help curb this fraud.
Phishing and Malware of Email and Social Networking Sites Also, large retail store hacks compromise your private information, whereas identity thefts use phishing scams and malware invasions to gain access to your e-mail and social media contacts. Once signed in to an email account, they can look for banking statements, tax documents, or any other material that might possess personal identifiers. From Facebook and other social sites, other features such as your mother’s maiden name can easily be obtained since they are used to confirm identity. To increase the security of accounts regularly changing passwords and activation of two-factor identification can be very effective.
It involves stealing mail and documents targeting homes. Some shameless criminals, with a view of impersonating their targets, have gone to the extent of pickpocketing mail and other personal documents from homes or even cars. Tampering with one’s mailbox and cars and avoiding leaving items of concern in plain sight especially when you have home service providers such as cleaners or contractors, are some of the prevention measures. Furthermore, a good investment would be to buy a crosscut shredder to dispose of old bills, bank statements, and other items that could contain one’s personal information as well as other unnecessary documents.
Family Fraud However, identity fraud is, at times, committed by close people, including relatives or friends, who have access to certain personal records and use them to enrich themselves. Ranging from a parent obtaining credit in a minor child’s account to a spouse forging the signature of the other to open a hidden account or a caretaker embezzling the money belonging to the elderly or disabled individuals, it happens quite frequently. Accounts must remain private even from friends and relatives because regaining control of a family identity theft is nearly always hard and can be legally and emotionally draining.
What Measures Can Be Taken If an Account is Opened in Your Name? Thus, in case if you become aware of or if you have certain suspicions that some account was opened using your identity and without your permission or if you think that your identity has been stolen, the first thing to do is to act fast and take all the necessary measures that would minimize the losses. Call the fraud departments of the three major credit reporting agencies and tell them an identity theft affidavit must be made. This is a good idea, for you should close any accounts that may have been opened fraudulently and then dispute these with the agencies involved. It is advised that you should report the theft not only to the FTC and your local police department even if you don’t know the offender to prevent other crimes that they might commit. Lastly, replace your usernames and passwords for your financial, email, health insurance, and other accounts. Other aspects such as keeping an eye on your credit report also play a big role in ensuring that you do not realize that there is something wrong until the problem has escalated.
Even as identity thieves receive new tools and technologies through which to operate, there are ways you and your family can reduce the chances of falling prey to these criminals: avoid giving out personal information; safeguard your mail; emails; social networking accounts; and so on. In case a leakage of data does happen or accounts are opened somehow without permission, prompt action adhering to fraud risk management measures and documenting down until you are absolved of blame will be crucial.
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