Identity Theft - How Your Identity is Stolen

How Your Identity Is Stolen

Identity theft is a serious problem that plagues everyone from businesses to individual wage earners. It can ruin your credit score, wipe out your bank account, and leave you in a mountain of debt. When someone steals your identity, you may even find your name on a list of wanted felons.

The best way to protect yourself from identity theft is by knowing the ways in which it can occur. Having this knowledge will help you take steps to prevent criminals form getting their hands on your personal information.

Online Phishing Scams

One way criminals can obtain your personal information is by using phishing scams. Phishing scams will send out e-mails from what appears to be a well-known site like Ebay, Amazon, or your personal bank or credit card company. The e-mail will request the person verify or confirm their user information for the Web site. The e-mails may attempt to frighten users into providing personal information by stating "your account will be closed unless you act immediately." The e-mail will usually contain a link to a bogus Web site. Once you enter your information in this bogus website, you've been had. Criminals now have your username and login information to your account.

Your Routing Number

Everyone should safeguard their personal information, even the parts of it they may seem harmless. One common scam is when criminals even offer to send you money. They convince you to give them your bank routing and checking number so they can transfer money into your account via wire transfer. However, these con-artists never had any intention on sending you money, so how does this scam work? The routing number on your check doesn't identify you personally; rather it identifies your bank. It may seem that criminals couldn't use this number to hurt you but they can. They will obtain your routing number, account number, and identity to print fraudulent checks drawn on your own account.

Your Garbage Bin

Criminals can be very clever when it comes to obtaining the information they need to steal your identity. They are willing to do just about anything including rummaging through your household garbage. Think about all of the solicitation letters you receive from creditors. Think about the bank statements you toss into the trash. Criminals can steal your discarded credit offers and bank statements to assume your identity. It is wise to invest in a paper shredder. Shredders can cost as little as fifty dollars. That is a small price to pay to protect your reputation and accumulated wealth.

Increasing Rate of Identity Fraud

Check fraud and identity theft are the two fastest growing financial crimes in the country. The increase in these crimes has lead to an increase in the measures that can prevent them. One of the best methods to prevent fraud is the use of MICR toner. This magnetic ink can prevent the duplication of checks. Check users can also employ watermarks which make duplication impossible.

Using some simple prevention methods and being careful with the distribution of your personal information can prevent you from becoming the victim of identity theft.