Imagine going to your local bank to apply for a new car loan only to be turned down because of a poor credit rating. When you press the loan officer further he tells you your credit score is well below 600 because you've missed payments on other vehicles and real estate properties over the last several months. Yet you don't have any outstanding loans or mortgages. You're left to sit and wonder what has happened to your credit without you knowing it.
You've been a victim of identity theft.
Scenarios like this are playing out all over the world as identity theft crimes are steadily on the rise. Victims are finding their credit histories trashed, their credit card bills maxed out, and all sorts of false and negative information regarding their credit showing up all over the place. It is a nightmare scenario that nobody wants to deal with. Yet it is a reality we must live with in the 21st century.
The Spike in Identity theft is Not Coincidental
It's true that identity theft has been around since the beginning of time. But not until the last decade or so has it been such a widespread and pervasive problem. It should be noted that the spike in identity theft is not coincidental. It coincides proportionally with the explosion of the Internet and the information age. The fact is, 21st-century technology has given identity thieves an entire arsenal of new weapons that can be used against us in any number of ways. And until individual consumers understand the risk, such thieves will not be slowed down.
Very few people understand how much of their personal information is readily available to anyone with an Internet connection and a little imagination. If you're skeptical, just consider how many people you know on FaceBook and Twitter who readily divulge the high school they graduated from, where they work, and the names of their spouses and children. Just this little bit of information is enough for a creative thief to learn everything he needs to know about you in order to steal your identity.
Too Much Information
We often use the phrase "too much information" when friends or family tell us certain things about their personal lives. Yet we don't think twice when a department store or doctor's office asks us for information that's really none of their business. For example, I'm sure you have been in some sort of retail outlet in the past year where the clerk has asked you for your address and telephone number. Those who give out such information without thinking about it don't realize that when the clerk enters it into the computer, it is forever linked with your name and credit card number.
It's not beyond the realm of possibility for dishonest employees at the corporate level to steal that information and sell it to thieves. In fact, not only is it possible, we've already seen numerous news reports detailing these types of crimes actually happening. More than one national retail chain has had to sheepishly admit that personal customer information had been stolen, forcing customers to do what they could to protect themselves against attacks they weren't sure would ever come. Yet it wouldn't be a problem if we refused to give out personal information.
Ask yourself, "Why does a department store need to know my address and telephone number?" They asked for it because it makes marketing to their customers much easier. Yet you don't visit retail outlets for the purpose of helping them do their job. You visit because you need to purchase products or services. If a store wants to market to you that badly, let them do it the old-fashioned way. Don't give them personal information that could be stolen and sold to thieves.
Careless with Credit Cards
Another way we open ourselves up to identity theft issues is when we are careless with our credit cards. For example, most of us won't think twice about giving the waiter or waitress at a local restaurant a credit card so he can take care of the bill for us. In most cases these individuals are completely trustworthy. But if you pay attention to the news, you probably heard that a major credit card fraud ring based out of New York City was recently busted. This ring of crooks had recruited waiters and waitresses all over the country to steal credit card information using small, hand-held readers.
Waiters and waitresses who agreed to be part of the ring were given the readers to stick in their pockets. When they took a customer's credit card to the "back" to process the transaction, all they needed to do was pull the reader from the pocket, quickly swipe the card, and put the reader back out of sight. At the end of the day, they took the reader home, plugged it into their computer, and transmitted the data to the ringleaders. For every credit card they swiped they would receive a fee. The thieves on the other end would take that information and use it to run up millions of dollars in illegal debt.
By the way, carelessness with credit cards doesn't begin or end at the local restaurant. Many of us are extremely careless when shopping online with credit cards as well. We routinely do so without a care in the world, never realizing that if we don't keep our computers protected against attacks from viruses and Trojan horses, we could fall victim to a malicious piece of software that's recording every key stroke we make on websites we visit.
Careless Internet Use
Along those same lines, too many people are careless in terms of Internet sites they visit and the e-mail they open. The Internet is one of the biggest farms for identity theft because so very few people are careful. As a general rule, the most important thing you need to know about your Internet use is that sites which involve social interaction and/or heavy downloads and streaming media are virtual cesspools of malicious computer attacks.
For example, do you make a habit of downloading movies or streaming them online? If so, the entire time your computer is hooked up to the media network it is an open door for hackers. The ports that must be opened to accommodate such data loads pose a huge security risk that greatly increases the likelihood your computer will be hacked. The same can be said for social networking sites that utilize file transfers and chat rooms. You may use these sites for years and never get hacked - that's true. But the day you do get hacked you'll be sorry you were so careless.
Recovering from Identity Theft
There are certainly plenty of other ways that identity thieves steal who we are and use it for their own gain. As such, we would encourage you to learn as much about them as you possibly can. But for now we're going to move on to the topic of recovery from identity theft once you are a victim. It goes without saying that it is a very time-consuming and complicated process which could take years to complete. It is a real headache, to say the least.
Recovering from identity theft begins by contacting your bank and credit card companies and having your accounts replaced. That means new credit cards, new bank accounts with new routing numbers, and so on. You'll also have to contact all of your known creditors and inform them of the theft. They will most likely have to go through the investigation process to ensure that everything pertaining to your account is legitimate. If they find things that are questionable you'll have to go through the additional process of proving which ones are legitimate and which ones aren't.
Finally you'll have to get a copy of your credit report so you see every creditor that has accepted fraudulent transactions in your name. Each one of those creditors will have to be contacted, and you'll have to explain the identity theft and hope they respond positively. However, plan on having a tough time convincing many of these creditors that you really don't owe them.
If they have your name, address, and social security, the bill is yours for all intents and purposes. You may have to go through a lengthy process to get fraudulent charges dismissed and your credit report restored. In some cases you may even have to go to court to get it done.
Identity Theft Steals More Than Money
When identity thieves assume your identity they are doing more than simply stealing money. They are ruining your credit history and your reputation as well. Identity theft is responsible for all kinds of misery from drained bank accounts to divorces to destroyed careers. The problem is, if a thief is allowed to continue long enough he can do enough damage to your reputation that makes it impossible to repair. Imagine having to defend your reputation five years down the road when something crops up you didn't know existed before. Is this something you want to deal with?
If identity theft is not something you're looking to experience it's time to take action to prevent it today. That means protecting your personal information at all costs. It means being careful with your credit cards, your Internet usage, your checkbook, etc. It means being as diligent as possible whenever you engage in any activity that could result in even the smallest piece of information falling into the wrong hands. Do your research, be proactive, and protect yourself.