What is identity theft?

Identity theft occurs when someone uses your personally identifying information, like your name, Social Security number, or credit card number, without your permission, to commit fraud or other crimes.

Identify theft is serious. While some identity theft victims can resolve their problems quickly, others spend hundreds of dollars and many days repairing damage to their good name and credit record. Some consumers victimized by identity theft may lose out on job opportunities, or be denied loans for education, housing or cars because of negative information on their credit reports. In rare cases, they may even be arrested for crimes they did not commit.

How is your identity stolen?

Skilled thieves may use a variety of methods to get your information including dumpster diving, shoulder surfing, skimming, phishing, changing your address, stealing, and pretexting. Once they have your personal information, identity thieves use it in a variety of ways including credit card fraud, utilities fraud, bank fraud, and government documents fraud.

How can I monitor my identity to ensure it isn't stolen?

The best way to find out if your identity has been stolen is to monitor your accounts and bank statements each month, and check your credit report on a regular basis. If you check your credit report regularly, you may be able to limit the damage caused by identity theft.

To reduce or minimize the risk of becoming a victim of identity theft or fraud, there are some basic steps you can take. Be stingy about giving out your personal information to others unless you have a reason to trust them. Check your financial information regularly and look for what should be there and what shouldn't. Ask periodically for a copy of your credit report. Maintain careful records of your banking and financial accounts.

Other ways to protect your identity include

Protect your social security number, credit card numbers, debit card numbers and PINs.
Protect your incoming and outgoing mail.
Keep your financial trash clean.
Keep a close watch on your bank account statements and credit card bills.
Avoid identity theft on the internet.
Exercise your new rights under FACTA to review your credit record and report fraudulent activity.

What should I do if my identity is stolen?

File a police report which entitles you to certain legal rights when it is provided to the three major credit reporting agencies or to companies where the thief misused your information. This reporting can block fraudulent information from appearing on your credit report and prevent a company from continuing to collect debts that resulted from identity theft. This report is required to obtain copies of the thief's application.

In addition, you should:

Report the theft to the FTC's ID theft hotline (877-IDTHEFT)
Contact the Social Security Administration for lost or stolen cards, request a new number or correct your earnings record. (800-269-0271)
Call the Internal Revenue Service if you suspect improper use of identifications in connection with tax violations. (800-829-0433)
Call the fraud units of the three principal credit reporting companies (Equifax 800-525-6285; Experian 888-397-3742; Trans Union 800-680-7289).
Contact all creditors with whom your name or identifying data have been fraudulently used.
Contact all financial institutions where you have accounts that an identity thief has taken over or that have been created in your name without your knowledge.
Contact the major check verification companies if you have had checks stolen or bank accounts set up by an identity thief (ChexSystems 800-428-9623)

Victims of identity theft should monitor financial records for several months after they discover the crime. Victims should review their credit reports once every three months in the first year of the theft and once a year thereafter. Stay alert for other signs of identity theft.

How long can the effects of identity theft last?

It's difficult to predict how long the effects of identity theft may linger because it depends on many factors including the type of theft, whether your information was passed on to other thieves, whether the thief was caught and problems relating to resolving your credit report.