Identity theft is the theft or unauthorized use of another person‘s personal identifying information (e.g., name, driver‘s license number, bank account numbers) for fraudulent or unlawful activities. Identity thieves often use the stolen information to establish or take over financial accounts. But they may also use a fraudulent identity to commit a crime, enter a foreign country, or hide one‘s own identity. For this reason identity theft is sometimes called "identity fraud."

Four out of five victims of identity theft have no idea what led to the theft of their personal or confidential information. Yet with just a name, Social Security number, and birthdate it‘s possible to get loans, access existing bank accounts, or open new bank accounts. Many people carelessly discard papers that contain enough information for an identity thief to get started (e.g., old credit card bills, pay stubs). In fact, there are many ways for an identity thief to obtain personal information. Some of the more common ones include:

• Computers/Internet: Credit card or other personal information sent over an unsecured Internet connection can easily be stolen.
• "Dumpster Diving": Personal information often ends up in the trash at home, at work, or in dumpsters outside stores and businesses. Discarded information is an easy target for thieves.
• "Pretexting": Thieves may call or e-mail potential victims posing as representatives of legitimate institutions to ask for personal or financial information, often under the pretense of "routine security checks."
• Stolen mail: Credit card bills, financial account statements, tax notices in unsecured mail boxes can disappear without your knowledge.
• Group identity theft: Places that keep records for many people, such as schools, hospitals or fitness centers, can be targets for sophisticated identity thieves.
• Public records: Records that are open for public inspection include real estate records, vehicle information, driver‘s license information, and certain types of professional certifications and licensing information.

Identity scams can go on for years without your knowledge, leaving you with a damaged reputation and ruined credit. In extreme cases, innocent people have lost jobs or promotions, even ended up with criminal records. It can be a long and difficult process to repair the damage done if your identity is stolen. Do everything you can to prevent it.