Identity Theft

Chances are you may know someone who has been a victim of some type of identity theft. Some of these people may have been victimized while traveling. They may have used their credit card in a different state or country and find charges that they themselves didn’t make on the next bill. While the common idea of what identity theft is usually focuses on this particular type of fraud, there are many other ways in which your identity can be stolen and used.

Financial Identity Theft

One way in which a stolen identity can be used is for the purpose of defrauding financial institutions. This happens when identifying information such as your social security number is stolen. A thief can use this information to obtain bank loans and credit cards. Because most people do not have constant access to their credit report, they may not become aware of the theft until they begin to receive bills from the creditors. Worse, they may start getting demands from collection agencies for money owed to accounts that they don’t possess.

Criminal Identity Theft

Aside from stealing your identity to be able to garner credit using your good credit rating, a person may be out to completely assume your identity. They may then use that identity in the commission of crimes. Attention to this type of theft was given a lot of focus after the World Trade Center bombings, when it was discovered that many of the terrorists had been using stolen identities. This can have very serious results for a person who is unaware that their identity was being used for such purposes. They are subject to being arrested and by the time they clear their name, the damage to their reputation has already been done.

Commercial or Business Theft

There are criminals who do not limit themselves to stealing the identity of an individual. They will actually steal the name of an entire company and go about setting up accounts in that name. If it is a prominent company and the thief produces fraudulent accounting records and other information, they can trick financial institutions into lending the “company” money. They can then use that money to buy expensive items. They can also take cash advances on the loans and then disappear, all the richer for their efforts.

Because of the escalating occurrences of identity theft, many creditors are now offering insurance that will help a person who has been victimized. Individuals should consider taking advantage of these programs to ensure that their good name will always be protected. Until the government finds ways to put an end to this type of theft, it’s up to the individual to take whatever steps necessary to protect their identity.