Identity Theft & Credit Card Fraud

Credit card fraud is identity theft in its most simple and common form. It can be accomplished either through a scenario like the one we just mentioned, or it can happen when your pre-approved credit card offers fall into the wrong hands.

All a person has to do is get these out of your mailbox (or trash can) and mail them in with a change of address request and start spending.

Someone can even apply for a credit card in your name if they have the right information.

You won't know a thing about it until the credit card company tracks you down and demands payment for the purchases 'you' have a racked up.

With a person's name, social security number and date of birth, someone can get loans, access the person's existing bank accounts, open new bank accounts, lease or buy cars, get insurance, you name it.

Think about the things you throw in the trash.

Do you throw your pay stubs away once you've recorded the amount in your checkbook?

Take a look at some of the information on that seemingly unimportant piece of paper:
Your full name
Your address
Your social security number
Your complete bank account number (if you have direct deposit)
Your employer and its address
Your rate of pay

Now, think about the types of information you have to provide in order to get a credit card or a loan or lease a car.

There is very little additional information that is needed in order to get that loan.

I recently got a home equity loan and did all but the final signing of the documents over the phone, and faxed all of my financial information directly to the loan officer.

It would not have been that difficult to 'create' those documents using someone else's social security number, bank account numbers and other personal information.

Now that's a scary thought!

Identity Fraud Resources

Department of Justice Identity Theft and Identity Fraud Website

Identity Theft and Identity Fraud

What Are The Most Common Ways To Commit Identity Theft Or Fraud?

Many people do not realize how easily criminals can obtain our personal data without having to break into our homes. In public places, for example, criminals may engage in "shoulder surfing" ­ watching you from a nearby location as you punch in your telephone calling card number or credit card number ­ or listen in on your conversation if you give your credit-card number over the telephone to a hotel or rental car company.

Even the area near your home or office may not be secure. Some criminals engage in "dumpster diving" ­ going through your garbage cans or a communal dumpster or trash bin -- to obtain copies of your checks, credit card or bank statements, or other records that typically bear your name, address, and even your telephone number. These types of records make it easier for criminals to get control over accounts in your name and assume your identity.

If you receive applications for "preapproved" credit cards in the mail, but discard them without tearing up the enclosed materials, criminals may retrieve them and try to activate the cards for their use without your knowledge.

Some credit card companies, when sending credit cards, have adopted security measures that allow a card recipient to activate the card only from his or her home telephone number but this is not yet a universal practice.

Also, if your mail is delivered to a place where others have ready access to it, criminals may simply intercept and redirect your mail to another location.

In recent years, the Internet has become an appealing place for criminals to obtain identifying data, such as passwords or even banking information.

In their haste to explore the exciting features of the Internet, many people respond to "spam" ­ unsolicited E-mail ­ that promises them some benefit but requests identifying data, without realizing that in many cases, the requester has no intention of keeping his promise.

In some cases, criminals reportedly have used computer technology to obtain large amounts of personal data.

With enough identifying information about an individual, a criminal can take over that individual's identity to conduct a wide range of crimes: for example, false applications for loans and credit cards, fraudulent withdrawals from bank accounts, fraudulent use of telephone calling cards, or obtaining other goods or privileges which the criminal might be denied if he were to use his real name.

If the criminal takes steps to ensure that bills for the falsely obtained credit cards, or bank statements showing the unauthorized withdrawals, are sent to an address other than the victim's, the victim may not become aware of what is happing until the criminal has already inflicted substantial damage on the victim's assets, credit, and reputation.