Understanding Identity Theft
You’ve probably heard the term identity theft or ID theft in the news. It’s a serious and costly crime that affects millions of people and costs victims in the United States billions of dollars each year.
Identity theft happens when someone uses your personal information without your permission to commit fraud. This may include opening credit cards or loans, making purchases, or even setting up phone or utility accounts in your name. In many cases, the victim is left responsible for charges they never made. Worse, the damage can take months or even years to fully resolve, and the fallout may affect your credit, your finances, and even your ability to get approved for loans or jobs.
At its core, identity theft begins with the misuse of your personal information, such as your name, Social Security number, credit card number, or bank account details. To a thief, this information is incredibly valuable because it can be used to access existing accounts or create entirely new ones.
Common Ways Identity Thieves Get Your Information
Identity thieves use a variety of tactics to steal personal data, including:
- Dumpster diving: searching through trash for bills, statements, or other documents containing sensitive information.
- Skimming: using devices to capture credit or debit card numbers during a transaction.
- Phishing: sending fake emails, texts, pop-ups, or messages that appear to come from legitimate companies in order to trick you into revealing personal information.
- Changing your address: redirecting your mail by submitting a fraudulent change-of-address form.
- Old-fashioned theft: stealing wallets, purses, mail, pre-approved credit offers, tax documents, or personnel records, or bribing employees with access to sensitive data.
- Pretexting: pretending to be someone trustworthy, such as a bank representative or service provider, to obtain your personal information.
Types of Identity Theft
Identity theft can take many forms, but some of the most common involve misuse of existing accounts or the opening of new ones.
- Credit Card Fraud: One type of identity theft involves unauthorized use of your existing credit card account. This often happens when a card is lost or stolen, but it can also occur when a thief steals your account number and creates a duplicate card. In some cases, you may not realize anything is wrong until you review your statement or a transaction is declined. Fortunately, credit card users are often protected from unauthorized charges if they report the fraud promptly.
- Debit Card Fraud: Debit card fraud can be especially damaging because it may drain money directly from your bank account. If a thief gets access to your debit card and uses it to make purchases or withdraw cash, your liability may depend on how quickly you report the loss. In general, the sooner you notify your bank, the better your protection.
- Check Fraud: Check fraud is another common form of identity theft. A criminal may steal your checks, forge your name, and empty your account. In other cases, a legitimate payee may alter a check to increase the amount. For this reason, it’s important to review your bank statements carefully and report any suspicious activity right away.
- New Account Fraud: Not all identity theft involves stealing from an existing account. In some cases, a thief uses your personal information to open new credit cards, loans, or accounts in your name. This type of fraud can be harder to detect and even harder to undo, since it may go unnoticed for a long time.
Why Identity Theft Is So Serious
What makes identity theft especially dangerous is the ripple effect it creates. Beyond stolen money, victims may face damaged credit, debt collection issues, denied applications, and the stress of cleaning up fraudulent accounts. The longer the fraud goes unnoticed, the more difficult it can be to repair the damage.
First New York offers all of our members ID Protect Identity Theft Program. This service is our proactive step to protect you and your family from identity fraud.
Contact a Member Service Specialist today at (518) 393-1326, option 2 for more information on how you can start protecting your identity today.