Identity Theft - The Most Common Forms of Identity Theft

Identity theft is becoming a major problem in many parts of the world. Although many consumers fear that their identity may be stolen through cyberspace, many thieves still use the traditional methods of dumpster diving and shoulder reading to pick up potential personal identity information. While it is true that identity theft has increased due to cyberspace, it is not always because thieves steal information online but simply because of the ease of hiding behind a computer to become a different person.

With this in mind, credit card and financial fraud have become the most common forms of identity theft in the 21st century. This is because it is easiest to use someone’s credit card or bank account information to make purchases through the computer, rather than having to take the risk of being seen in person without the proper identification. Unfortunately, this makes common forms of identity theft difficult to catch and even more difficult to prosecute.

Steps are being taken to prevent credit card and financial fraud but these problems still account for the majority of United States Federal Trade Commission complaints regarding identity theft. Some of the steps taken to protect victims are more strenuous laws on the businesses to check the identity of customers, requirements that customers give a three digit number that appears on the back of credit and debit cards, and requiring current billing information with a purchase.
Still, this does not ensure that consumers are full proof against credit card and financial fraud, especially when many thieves have access to the billing information or the actual credit card. Many thieves who partake in dumpster diving will actually find credit card offers in the trash can and fill that offer out to go to a different address. This way they actually have the credit card in hand and the billing address is one they already know.

Other ways that thieves can financially gain from a victim’s account include finding out bank information and using that bank information for their own personal gain. This could include ordering blank checks or even making debit card purchases online. Since most banks have begun to require several forms of identification to withdrawal money from accounts, the most common form of bank account misuse has become debit cards. These cards can be used to make purchases or withdrawal cash from an ATM with little to no detection. Debit card protection comes in the form of simply entering a pin number but often times the debit card can be used in a similar form as a credit card, requiring no pin at all.

The best ways to prevent these common forms of identity theft are to constantly be aware of credit records. This includes ordering a regular credit report, checking bank account and credit card statements on more than a monthly basis, and only using secure websites to check account information online. You may also want to consider investing in a shredder, so that all credit card offers and bank account information that comes through the mail can be shredded before being thrown in the trash. Simple steps like these can help you from becoming a victim of the most common forms of identity theft.