Identity Theft

Identity theft or fraud is a crime committed by someone who steals another individual's personal information and uses it without that person's permission. Unfortunately, it can be quite easy for someone to access important personal information and commit such a crime.

Criminals can go through people's garbage looking for documents like bank statements or pre-approved credit card offers with the person's full name and possibly an account number. Thieves also watch closely while someone enters a PIN or a credit card number at an ATM machine or store.

The internet has made it even easier for criminals to access personal information. Many people receive SPAM messages that look as though they are coming from a legitimate source. Some may they click on the links in those emails and provide passwords, bank account information or Social Security numbers unknowingly to a thief. Criminals can find ways to access passwords for websites, as well.

An identity thief can take personal information to apply for loans or credit cards and rack up a large amount of debt without the victim realizing it for quite some time. They could possibly withdraw funds from a bank account or reroute someone's Social Security benefit checks as described in this article, "Scam targets senior's Social Security benefits," posted by CNNMoney.com.

There are ways to reduce the chances of becoming a victim:

Check account balances frequently to make sure there have not been unauthorized withdrawals or charges. If any fraudulent activity is expected, then contact the financial institution IMMEDIATELY.

Always shred any mail that contains even small pieces of personal information before disposing of it.

Never give personal information over the phone especially when someone calls asking for that information out of the blue. They may say they are from the bank or there is an issue with a credit card or account. Ask for information to be sent in writing or call the number of the bank or off the back of the credit card to verify that someone had a legitimate reason to call. Banks who call for valid reasons would not ask for pieces of information like PIN numbers.

Change passwords for websites that contain personal information frequently and never write them down in a place where they can be found.

Never click on links in emails unless the source of the email can be verified. If there is information that needs to be confirmed, go directly to the bank or credit card's website to do so.

Even for legitimate reasons, never give a credit card number or bank account number over the phone where someone else can easily eavesdrop and obtain the information.

According to the Federal Trade Commission's Identity Theft Site, if identity theft is suspected, four very important steps must be taken as soon as possible.

1. Place a fraud alert on and review credit reports.

2. Close any accounts that may have been tampered with or opened fraudulently.

3. File a complaint with the Federal Trade Commission.

4. File a report with your local police or the police in the community where the identity theft took place.

Free copies of identity theft resources from the FTC can be found at: http://www.ftc.gov/bcp/edu/microsites/idtheft2012/