ID Watchdog - Identity Theft Protection - 100% Identity Theft Resolution Guaranteed

Identity theft can be confusing to say the least. We have compiled a few common questions that come up about identity theft, how it happens, and what to do about it.

» What is the definition of identity theft?
» How can someone steal my identity?
» How do criminals gain access to my information?
» How can I tell if I'm a victim of identity theft?
» What are the effects of identity theft?
» What are the direct costs of resolving ID Theft on my own?
» How long can the effects of identity theft last?
» Are there laws against identity theft?
» If a criminal has taken my identity, should I cancel my credit cards?
» Should I change my Social Security number if I am a victim of identity theft?
» I am currently using a credit monitoring service, will I still benefit from purchasing the ID Watchdog service?

What is the definition of identity theft?

Identity theft is the fraudulent use of another person's identifying information in order to:

obtain credit fraudulently from banks and retailers
steal money from the victim's existing accounts
apply for loans
establish accounts with utility companies
rent an apartment
file for bankruptcy
obtain a job; or
achieve other financial gain using the victim's name

There are two main classes of economic crime related to identity theft:

Account takeover occurs when an identity thief acquires a person's existing credit or bank account information and either withdraws money or makes purchases. Victims usually learn of account takeover when they receive their monthly credit card or bank account statement.

In true identity theft, an identity thief uses another person's Social Security number and other identifying information to fraudulently open new accounts for financial gain. Victims may be unaware of the fraud for an extended period of time, which can allow the criminal to continue the ruse for months or even years.

How can someone steal my identity?

An identity thief does not need much to steal your identity — your Social Security number, your birth date, perhaps your address and phone number — to commit fraud. With this and a fake driver's license (with the criminal's picture where yours should be), the thief can often get instant credit in your name. The criminal may provide his or her own address, claiming to have moved, and thus keep you in the dark. The more accounts the criminals are able to open, the more "evidence" they have that your identity belongs to them.

How do criminals gain access to my information?

Despite your best efforts to manage the flow of your personal information or to keep it to yourself, skilled identity thieves may use a variety of methods to gain access to your data.

They get information from businesses or other institutions by:

stealing records or information while they're on the job
bribing an employee who has access to these records
hacking these records
conning information out of employees
stealing your mail, including bank and credit card statements, credit card offers, new checks, and tax information
by rummaging through your trash, the trash of businesses, or public trash dumps in a practice known as "dumpster diving"
getting your credit reports by abusing their employer's authorized access to them, or by posing as a landlord, employer, or someone else who may have a legal right to access your report.
stealing your credit or debit card numbers by capturing the information in a data storage device in a practice known as "skimming." They may swipe your card for an actual purchase, or attach the device to an ATM machine where you may enter or swipe your card
stealing your wallet or purse
completing a "change of address form" to divert your mail to another location
stealing personal information they find in your home
stealing personal information from you through email or phone by posing as legitimate companies and claiming that you have a problem with your account. This practice is known as "phishing" online, or pre-texting by phone.

How can I tell if I'm a victim of identity theft?

If an identity thief is opening credit accounts in your name, these accounts are likely to show up on your credit report. To find out, order a copy of your credit reports. Once you get your reports, review them carefully. Look for inquiries from companies you haven't contacted, accounts you didn't open, and debts on your accounts that you can't explain. Check that information, like your Social Security number, address(es), name or initials, and employers are correct. If you find fraudulent or inaccurate information, get it removed.

Continue to check your credit reports periodically, especially for the first year after you discover the identity theft, to make sure no new fraudulent activity has occurred.

Stay alert for other signs of identity theft, like:

failing to receive bills or other mail. Follow up with creditors if your bills don't arrive on time. A missing bill could mean an identity thief has taken over your account and changed your billing address to cover his tracks.
receiving credit cards that you didn't apply for.
being denied credit, or being offered less favorable credit terms, like a high interest rate, for no apparent reason.
getting calls or letters from debt collectors or businesses about merchandise or services you didn't buy.

What are the effects of identity theft?

Once identity thieves have your personal information, they use it in a variety of ways.

They may call your credit card issuer to change the billing address on your credit card account. The imposter then runs up charges on your account. Because your bills are being sent to a different address, it may be some time before you realize there's a problem.
They may open new credit card accounts in your name. When they use the credit cards and don't pay the bills, the delinquent accounts show up on your credit report.
They may establish phone or wireless service in your name.
They may open a bank account in your name and write bad checks on that account.
They may counterfeit checks or credit or debit cards, or authorize electronic transfers in your name, and drain your bank account.
They may file for bankruptcy under your name to avoid paying debts they've incurred under your name, or to avoid eviction.
They may buy a car by taking out an auto loan in your name.
They may get identification such as a driver's license issued with their picture, in your name.
They may get a job or file fraudulent tax returns in your name.
They may give your name to the police during an arrest. If they don't show up for their court date, a warrant for arrest is issued in your name.

What are the direct costs of resolving identity theft on my own?

The FTC's indicated that respondents who had experienced some form of identity theft estimated an average loss of $4,800. In this same study, the Federal Trade Commission estimated the total financial loss to U.S. businesses from Identity Theft to be approximately $47.6 billion.

How long can the effects of identity theft last?

It's difficult to predict how long the effects of identity theft may linger. It depends on many factors, including the type of theft, whether the thief sold or passed your information on to other thieves, whether the thief is caught, and problems related to correcting your credit report.

Victims of identity theft should monitor their personal information for at least a year after they discover the crime.

Are there laws against identity theft?

Yes. In 1998 Congress passed the Identity Theft and Assumption Deterrence Act (918 U.S.C. §1028), which makes it a federal felony to use another person's identification with the intent to commit unlawful activity. Federal agencies such as the Secret Service, the FBI, and the U.S. Postal Inspection Service investigate suspected violations of this law; the Department of Justice handles prosecutions. More recent federal legislation increases penalties for aggravated identity theft, workplace identity theft, or use of a stolen identity in connection with a terrorist act.

If a criminal has taken my identity, should I cancel my credit cards?

The best course of action depends on your circumstances. Your goal is to reduce the risk that a given account will be abused, while maximizing your own ability to use your existing credit accounts. In weighing risks and benefits, keep in mind that if you have recently become an identity theft victim, your situation may make it difficult to obtain new credit in the near future.

Rather than canceling accounts, ID Watchdog can help you notify the fraud department for each account and have a fraud alert placed. If a credit or debit card (or the data on it) has been lost or stolen, you may wish to cancel that card and have a new card issued that is based on the same account, but has a different number. If you have multiple credit cards, you may decide to cancel some to reduce your exposure. In any event, instruct credit card issuers and banks not to change your address without direct verification from you, in writing, that originates from your present address. You should also monitor closely the monthly statements for any credit card or bank accounts you do decide to keep active.

Should I change my Social Security number if I am a victim of identity theft?

In most cases this is a bad idea. You have had that number for many years and it is attached to many documents, including your credit report and various other private and government documents. If you must change your Social Security number (this will be an incredible hassle with the Social Security Administration), your credit reports with your old Social Security number will be attached to the reports with the new number. This will look very suspicious to creditors and employers, and cause further problems in proving yourself to be the victim instead of the imposter.

I am currently using a credit monitoring service, will I still benefit from purchasing the ID Watchdog service?

Yes, your credit reports represent only the tip of the iceberg of the relevant information that can be corrupted. Credit reports cover 3 databases. In fact the latest FTC data shows that only 25% of all identity theft is related to credit card fraud. Our service looks at thousands of databases and scans them for manipulations of your data. Only the ID Watchdog will give you all of the information you need to ensure the complete integrity of your identity by notifying you before you become a victim, not after.

Do you have more questions that aren't answered here?

Submit your questions to info@IDwatchdog.com or give us a call at 800.774.3772.

ID Theft F.A.Q.