What is Identity Theft?

The U.S. Department of Justice defines identity theft as a crime: "Identity theft and identity fraud are terms used to refer to all types of crime in which someone wrongfully obtains and uses another person's personal data in some way that involves fraud, or deception, typically for economic gain."

According to the Federal Trade Commission, there were almost ten million incidents of identity theft in the United States in 2004. The cost to consumers? Five billion dollars a year. Many folks think identity theft takes place mostly online, but a January 2005 survey by the Better Business Bureau and Javelin Strategy and Research reports that most identity thefts take place outside the computer realm.

Some of the things identity thieves do include the following:

• File a change of address form in your name to divert mail to them so they can gather personal and financial data
  
• Steal credit card payments and other outgoing mail from individual, unlocked mailboxes
  
• Lift driver's license numbers, Social Security numbers, phone numbers, or other identifying number from checks you write or blank checks delivered o your home
  
• Steal mail, especially envelopes containing bill payments, from unsecured, unguarded outgoing mail at work
  
• Steal discarded applications for your "pre-approved" credit cards and fill them out with a different address that goes to them
  
• Hack into a computer that contains your personal records and steal the data
  
• "Phish" by sending a legitimate-looking email that directs you to a phony, but legitimate-looking  website that asks for your personal and financial data
  
• Use the camera in a cell phone to photograph your credit card or ATM card while you are using an ATM or buying something in a store
  
• "Pharm" by hijacking whole sites to a location they control and then gather your personal and financial data when you believe you're communicating through your customary service provider

Some identity thieves use a victim's credit history to make long-term financial commitments, like taking out a mortgage or buying a car. They may also run up huge amounts of debt and then file for bankruptcy in the victim's name, ruining the victim's credit history and reputation.

But not all identity thieves are after your money.  They sometimes steal identities to commit other crimes. In Washington, DC, an identity thief recently stole information to forge a military identification card, threatening national security. Identity thieves sometimes steal or forge passports to bring people into the country for a number of illegal reasons, including human trafficking.

How To Prevent Identity Theft

Here are some tips to help you avoid becoming a victim of identity theft:

• Don't put outgoing mail, especially bill payments, in unlocked mailboxes. 
  
• Drop your mail off at U.S. Postal Service mailboxes.
  
• Don't put mail in an unsecured outgoing mail station at work.
  
• Don't write your account number on the outside of an envelope containing a bill payment.
  
• Have the post office hold your mail for you when you are out of town or have a trusted neighbor pick it up daily.
  
• Make sure no one is standing behind you when you use an ATM.  He or she may use a cell phone with a camera to try to photograph your card number and pin number.  Always shield your card and the screen.
  
• Pay your bills online, but only through a secure site.
  
• Don't give out your credit card number on the Internet unless the site is an encrypted secure site whose identity you are certain of.