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KEY TAKEAWAYS

• Identity theft occurs when someone steals your personal information and
credentials to commit fraud.
• There are various forms of identity theft, but the most common is financial.
• Identity theft protection is a growing industry that keeps track of people's credit
reports, financial activity, and Social Security number use.

Understanding Identity Theft

Identity theft occurs when someone steals your personal information—such as
your Social Security number, bank account number, and credit card information.
Identity theft can be committed in many different ways. Some identity thieves sift
through trash bins looking for bank account and credit card statements. More high-tech
methods involve accessing corporate databases to steal lists of customer information.
Once identity thieves have the information they are looking for, they can ruin a
person's credit rating and the standing of other personal information.
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Identity thieves increasingly use computer technology to obtain other people's personal
information for identity fraud. To find such information, they may search the hard drives
of stolen or discarded computers; hack into computers or computer networks; access
computer-based public records; use information-gathering malware to infect
computers; browse social networking sites; or use deceptive emails or text messages.

Victims of identity theft often do not know their identity has been stolen until they
begin receiving calls from creditors or are turned down for a loan because of a bad
credit score.

Types of Identity Theft

There are several types of identity theft including:

❖ Financial identity theft
In financial identity theft, someone uses another person's identity or information
to obtain credit, goods, services, or benefits. This is the most common form of
identity theft.

❖ Social Security identity theft
If identity thieves obtain your Social Security number, they can use it to apply for
credit cards and loans and then not pay outstanding balances. Fraudsters can
also use your number to receive medical, disability, and other benefits.