Identity fraud and identity theft are crimes that are increasing in number. The Federal Trade Commission (FTC) estimates that approximately 9 million Americans have their identities stolen each year. Unfortunately, many people may not realize their identity has been stolen until they receive calls or letters for delinquent bills.
Some cases of identity theft can be solved easily; however, the majority of cases are difficult and costly to resolve for the victim. The best way consumers can protect themselves is to avoid becoming victims of identity theft and identity fraud. ID theft protection services work to alert consumers of possible identity theft and identity fraud.
Types of Identity Fraud and Identity Theft
Identity theft is a crime that occurs when a person uses another person’s personal identifying information, such as name, social security number or credit card number without permission for the purposes of committing fraud. How do thieves obtain personal information? Examples of methods of stealing personal identity information include:
- Scammers look through garbage bins for paper or bills with personal information.
- Scammers pretend to be from a financial institution by sending an e-mail requesting personal information.
- Scammers submit a change-of-address to another location and retrieve mail.
After a person’s identity is stolen, scammers can commit identity fraud, which is a crime committed when a criminal uses another person’s identity to obtain money or services by deceit. An example would be using someone else’s identity to obtain a credit card with the purpose of making purchases. Types of identity fraud include:
- Credit card fraud
- Utilities fraud
- Finance fraud
ID Protection Services
Many ID theft protection services exist. Some of the most popular ID protection service companies include LifeLock, Trusted ID and Watchdog. Identity theft protection companies work to prevent identity theft and decrease the chances of criminals committing identity fraud.
ID protection services use systems that monitor databases for fraudulent use of customer’s personal information by retailers, banks, financial institutions, lenders and utilities. For example, if a person chooses one of the identity theft protection companies to protect their personal information, the company would monitor databases for activity. If identity fraud was suspected, the customer would be notified by the company.
With the increasing number of identity theft and identity fraud incidents each year, consumers need to protect their personal information to avoid becoming victims. Consumers who want protection from identity theft and decide to use an ID theft protection service, should spend time researching companies to determine the best one for their personal needs because companies offer different services.
Debbie Baughman - Debbie Baughman is a freelance writer with a variety of interests. She is a lifelong learner who is curious about many subjects. Her ...
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