Identity theft involves the theft or unauthorized use of another person's personal identifying information—such as one's name, automated teller machine card, driver's license number, social security number, and date of birth—in order to establish or take over existing credit card, bank, or telephone accounts. The growth of the Internet and other information technologies, and the increased accessibility of personal account and other information, have heightened identity fraud risk. The Better Business Bureau estimates that the total one-year cost of identity fraud in the United States is $56.6 billion.1
Identity thieves can get your personal information from a variety of sources. If you have sent credit card or other personal information over an unsecured Internet connection, it can easily be stolen. Thieves can also derive information from discarded credit card receipts or bank records. Sometimes, employees of companies will sell customers' personal information to crooks. However they obtain it, criminals with your account number or social security number can impersonate you to obtain credit, get control of your personal accounts, or open new accounts. Once your identity has been stolen, criminals can withdraw money from your bank accounts, incur large credit card debts, or obtain loans or welfare benefits.
Identity scams can go on for years without your knowledge, leaving you with a damaged reputation and ruined credit. And it can get even worse: Some innocent people may lose jobs or promotions, or even end up with criminal records.
