Identity Theft: How thieves get your information and use it

Thieves use a variety of methods to get your personal information. Usually, the purpose of identity theft is financial gain. Learn how to protect yourself by reading the tips below. The following information was obtained from the Federal Trade Commissions publication "ID Theft: When Bad Things Happen To Your Good Name."

How Identity Thieves Get Your Personal Information

They steal your mail, including bank or credit card statements, pre-approved credit offers, telephone calling cards and tax information.
They steal wallets or purses that contain IDs, credit cards or checks.
They complete a change of address form to divert your mail to another location.
They go through your trash or the trash of businesses for personal data.
They fraudulently obtain your credit report by posing as someone who may have a legitimate need for or a legal right to the information.
They get your business or personnel records at work.
They find personal information in your home.
They use personal information you share on the Internet.
They buy your information from inside sources. The thief pays a store employee for information about you from applications for goods, services or credit.

How Identity Thieves Use Your Personal Information

They call your credit card company and, pretending to be you, ask to change the mailing address on your account. They run up charges on your account and, since the bill is being sent to a different address, it may take some time before you realize there is a problem.
They open a new credit card account. When they dont pay the bill, it is reported on your credit report.
They get phone or wireless service in your name.
They open a checking account in your name and write bad checks.
They file for bankruptcy under your name to avoid paying debts they've incurred under your name or to avoid eviction.
They counterfeit checks or debit cards and drain your account.
They buy cars by taking out auto loans in your name.

What you can do to reduce your risk

Find out how personal information will be used and if it will be shared with others. Ask if you can choose to keep it confidential.
Pay attention to your billing cycles, and follow up with creditors if your bills are late. A missing credit card bill could mean a thief has taken over your account and changed the billing address to cover his tracks.
Deposit outgoing mail in post office drop boxes or at the post office. Promptly remove mail from your mailbox. Have a trusted friend or neighbor get your mail while you are away from home, or call the U.S. Postal Service at 1-800-275-8777 to request a vacation hold until you can pick it up.
Put passwords on credit card, bank and phone records. Avoid easily available information like your mother's maiden name, your birth date, the last four digits of your social security number, your phone number or a series of consecutive numbers.
Reduce the identification information and the number of cards you carry to what you'll actually need.
Do not give out personal information over the phone unless you initiated the call.
Tear or shred your credit card receipts, copies of credit applications, insurance forms, physician statements, bank checks and statements, expired charge cards and credit offers you get in the mail before you put them in the garbage.
Be careful of where you store personal information in your home, especially if you have roommates, employ outside help or are having service work done in your home.
Find out who has access to your personal information at work and verify that the records are kept in a secure location.
Give your social security number only when absolutely necessary. Ask to use other identifiers when possible.
Don't carry your social security card in your wallet or purse. Leave it in a secure place.
Order a copy of your credit report from each of the three major credit reporting agencies every year. Make sure it is accurate and includes only the activity that you have authorized.

Identity theft and fraud are crimes. If you are a victim, call your local police department to initiate a report. If you would like more information, call toll-free 1-877-IDTHEFT or visit www.consumer.gov/idtheft.