Identity Theft Fraud
By Rick Hazeltine
Staff Editorial Writer
Although most people have a basic knowledge of what identity theft is, not all understand what ID thieves can do once they have attained someone's personal information.
Identity theft fraud can take many forms, with the most prevalent being credit card fraud. This is primarily because there are so many credit cards in the market place. The average consumer has nine credit card accounts according to the Fair Isaac Corporation, the same folks that bring you the FICO score.
Of course, that doesn't even account for the scores of pre-approved credit card offers consumers receive in the mail. These pre-approved offers are a prime target for identity theft fraud.
Once an identity thief opens a new credit card account in your name, they can use the cards and not pay the bill. These delinquent accounts are then reported to the credit bureaus — Equifax, Experian and TransUnion — where they will stay unnoticed until you apply for credit or have your credit limits reduced because you have too much debt.
Even worse, identity thieves can change the billing address on your credit card, run up the charges and it may take months before a problem is discovered.
Although credit cards may be the backbone of identity theft fraud, there are many other ways thieves can utilize your identity for their profit. Here is a look at some of the ways identity thieves use personal information:
- Thieves can open a new phone or wireless account in your name or run up charges on your existing account. Your name can also be used for utility accounts, such as electricity, heating or cable TV.
- Counterfeit checks can be made using your name and account number. Thieves can do this with discarded bank statements or lost/stolen checks. They can also open a bank account in your name and write bad checks. It is even possible to take out a loan in your name.
- Some identity theft fraud doesn't involve stealing directly from you, but selling your information to be used by others for drivers licenses or official ID cards used in your name but with someone else's picture. With your Social Security number, identity thieves can get government benefits or file a fraudulent tax return to get a refund.
- Other types of identity theft fraud include someone using your Social Security number to get a job because they are in the country illegally or are trying to hide criminal convictions. By purchasing your identity, people can rent a house or even tools or a car and not return them. Your identity can be used to get medical services. One of the scariest fallouts from identity theft fraud is that a thief can use your identity during an arrest and when they don't appear on their court date, a warrant is issued for your arrest.
