Pennywise
Identity Theft
by: Sahil | last updated: November 12, 2009
Category: Standard Credit Cards | Tags: identity theft, fraud, fraud preventions, scams, crime, credit card theft, fraud alerts
Category: Standard Credit Cards | Tags: identity theft, fraud, fraud preventions, scams, crime, credit card theft, fraud alerts
Identity theft is a type of fraud in which someone pretends to be you in order to gain personal information, steal money, or receive financial benefits. Identity theft is somewhat similar to and is a subset of identity fraud. Identity theft itself may not pose a problem unless such theft is used for committing the fraud. According to a survey, ten million people were victims of identity theft in the United States alone. In light of such sobering figures it becomes important to make sure that you do not fall prey to identity theft or identity fraud.
There are various types of identity thefts including financial theft, criminal identity theft, identity cloning, synthetic identity theft, and medical identity theft. All these can have a negative impact on a persons finances and credit scores if not disputed in time. Financial identity theft involves stealing identity tokens and information in order to gain access to finances. For example knowing a persons credit card number, social security number, PIN number, address, and other personal information can help in securing finances without even the creditor being aware that a fraud is being committed.
Criminal identity theft is perpetrated by criminals who present fake or stolen information to the arresting officers or the law enforcement authorities. This information about the victim is then recorded by the police and the criminal released. When a warrant or subpoena is issued against the registered identity the victim can be arrested instead of the real criminal. Criminal identity theft can be avoided by safeguarding your personal financial information.
Cloning or impersonating someone is also one of the methods used by criminals who are avoiding authorities for crimes or for any other reason. The criminal may live under an acquired name and identity and even gain personal identity proofs. Such crimes can go undetected for many years and can only be revealed if there are major discrepancies on the credit reports or by the subsequent arrest of the criminal. This type of fraud can be avoided by safeguarding information by not divulging it on platforms such as the Internet.
Medical identity theft and frauds are also common when a person can give wrong information or information that belongs to someone else. In such frauds, all or part of the insurance as well as personal information is made use of to gain medical services fraudulently. Medical insurance frauds are comparatively easier to detect since it involves larger amounts. However, frauds involving two parties enjoying benefits of one insurance are more common and not easily detectable.
There are various methods that perpetrators use when obtaining personal information about the victim. The use of internet search engines to get personal information, data breach, eavesdropping on public transactions, and browsing social networking sites for personal information are some of the common methods of gaining access to a victims identity. Some have even used skimming technology where a device is placed on top of or attached to Automated Teller Machines (ATMs). This device records all personal information which is then decoded and used by the criminals.
The best way to avoid identity thefts is to keep personal information out of the reach of strangers. Information such as address, telephone numbers, credit card numbers, exact location of employment, or debit card numbers, should not be available to strangers. If you have any such information on the Internet then it is advisable to remove it if it is not mandatory by law. This will ensure that no one can impersonate you or use your personal information in a fraudulent manner.
Credit card fraud is the most common form of identity theft - a thief can commit credit card fraud by using an unopened credit card offer or by dumpster diving for old receipts. Sometimes credit card fraud starts as an inside job. A store clerk can attach a skimmer on credit card machines and record information - some can even record debit card personal identification numbers (PINs). As far as Internet security is concerned you will know that you are on a secure website if the URL starts with https and not just http. Furthermore it is advisable to use only one credit card for all your on-line purchases.
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