Identity Theft FAQs
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Most Frequently Asked Questions about Identity Theft. (Click on each link to extend)
Q.1 How do identity thieves take your identity?
There are many methods used, from dumpster diving, phishing, skimming, mail fraud etc. One of the easiest ways identity thieves steal personal information is online. Users who do not protect their computer systems with the proper anti-virus, anti-spyware and firewall software are at high risk.
Q.2 Why do credit reporting agencies sell my information?
Your information is traded like this because this is mostly how the credit reporting agencies generate revenue. This is not illegal, even though this practice contributes to the high rates of identity theft. However you do have the right to opt out, meaning that you would formally ask them to stop sharing your information and if you ask then by law they must stop.
Q.3 What can I do to protect myself from identity theft?
There are a number of things that everyone needs to proactively do to make sure their information is hard to get to and hard to use. You can start by following the free "identity theft prevention guide" and practice all these important steps to protect yourself. You can also automate the process of monitoring your information by subscribing to "identity theft protection services".
Q.4 How likely is it that I'll become a victim of identity theft?
Up to 10 million identities are stolen every year and millions more are exposed every year due to data breaches, where your information is mishandled at a medical, financial, educational or insurance institutions you do business with. For the average citizen, the likelihood of becoming a victim of identity theft is moderate, for people who make plenty of use of their credit cards and do business online.
Q.5 Am I responsible for charges and crimes an identity thief commits using my identity?
That all depends, the fraudulent charges may be easy to fix, by law you're only responsible for the first $50 dollars of any fraudulent charge. However, crimes that involve your identity will be tougher to fight, you can still be arrested and formally charged, you'll have to hire an attorney to defend yourself and your case could take a long time to resolve.
Q.6 Are there any laws against identity theft?
Identity theft is in fact a crime, Congress passed the Identity Theft and Assumption Deterrence Act in 1998, which makes it illegal to assume the identity of any person to commit unlawful activities, it is a felony. However there have few convictions of identity theft in proportion to the millions of cases reported every year.
Q.7 What should I do if my identity is stolen?
You need to act fast and begin reporting the incident to the creditors of the accounts that have been compromised. You need to fill out the identity theft affidavit and you should also contact your local police or sheriff's department to file a report.
Q.8 How good are the paid Identity Theft Monitoring and Protection Services?
These services offer an automated process of monitoring and alerting you of fraud using very sophisticated technology. You are most certainly able to do much of what they do on your own but these services are the most effective way of preventing identity theft particularly because it is virtually impossible for any one person to cover all aspects of identity theft prevention on their own, especially when it comes to online identity theft.
Q.9 Why are children at risk of identity theft?
The identities of young children may appeal to some thieves for the simple fact that children have a clean slate, their records are brand new and this can give someone with bad credit a good opportunity by assuming the identity of someone not old enough to understand the concept of identity theft yet. Sadly, it is often the relatives of child victims who are responsible for ruining their financial futures.