There are many things or personal possessions that can be owned. Sometimes these items have been purchased, received as gifts or passed down from generation to generation.

They may have a monetary value or they could be more sentimental. Things like pictures or other heirlooms are hard to put a price on, but they can be invaluable to people who know their history.

And what’s the problem with owning things? They can be stolen. Or damaged by fire, flood or earthquake.

One of the most personal things that can be stolen from you is your identity. Identity theft is becoming more and more of a problem, and the first step in preventing it is to understand what it is.

Definition Of Identity Theft

In order to be aware of identity theft, provide protection and prosecute those who steal another’s identity, it is important to define identity theft. Identity theft is that action or actions taken by another for the purpose of misrepresenting themselves as that individual in order to commit fraudulent acts. Those fraudulent acts can include the illegal accessing of that person’s financial accounts or committing acts of crime. Those acts of crime could include creating new credit cards accounts, obtaining a loan, etc.

One of the most common impacts of identity theft is financial loss of some sort. Identity theft can affect your finances and credit rating when the thieves are able to access your bank accounts, credit cards and other private information.

Plus, if it continues for long it can have a big impact on your good name. Credit reports, criminal records, employment history - they can all be affected by identity theft. If you run into these problems, it can take years to undo.

How Identity Theft Occurs

Identity theft usually happens when someone obtains critical pieces of information about you.

These pieces of critical information are generally identification numbers or data that only the owner of that information is privy to. Some of those numbers could be social security numbers, personal identification numbers (PINs), passwords, a mother’s maiden name, date of birth, etc.

If an identity thief gets hold of this information, they can impersonate you to banks, credit card companies and other services. Don’t ever give this information out to anyone who shouldn’t have it.

Often a company is very clear that they will never ask for these sensitive numbers unless the customer has initiated the call. In addition, often a company will only ask for the last four numbers of a person’s 9 digit social security number.

Also, identity thieves may look through trash or steal a person’s purse or wallet. It is therefore very important to shred all unwanted mail that contains sensitive information as well as never carrying your social security card with you.

Tags: Identity Theft