6 Methods of Committing the Crime
According to the FTC, there are six main methods identity thieves use to steal identities.
The first method involves dumpster diving where the thieves “rummage through trash looking for bills or other paper with your personal information on it.”
The second method involves skimming where the thieves “steal credit/debit card numbers by using a special storage device when processing your card.”
The third method involves phishing where the thieves “pretend to be financial institutions or companies and send spam or pop-up messages to get you to reveal your personal information.”
The fourth method that identity thieves use to steal identities involves changing your address where the thieves “divert your billing statements to another location by completing a change of address form.”
The fifth method involves old-fashioned stealing where the thieves “steal wallets and purses; mail, including bank and credit card statements; pre-approved credit offers; and new checks or tax information,” and they can also “steal personnel records, or bribe employees who have access.”
The sixth method involves pretexting where the thieves “use false pretenses to obtain your personal information from financial institutions, telephone companies, and other sources.”
5 Ways of Using the Stolen Information
Once these identity thieves have a person’s personal information, there are an infinite number of ways they can use it. The FTC breaks these uses into five different categories.
The first way is credit card fraud. The thieves “may open new credit card accounts in your name,” and “when they use the cards and don’t pay the bills, the delinquent accounts appear on your credit report.” They may also “change the billing address on your credit card so you no longer receive bills, and then run up charges on your account,” and “because your bills are now sent to a different address, it may be some time before you realize there’s a problem.”
The second way is with phone or utilities fraud. The thieves “may open a new phone or wireless account in your name, or un up charges on your existing account.” Another way is that they “may use your name to get utility services like electricity, heating, or cable TV.”
The third way is with bank and/or finance fraud. The thieves “may create counterfeit checks using your name or account number. They may open a bank account in your name and write bad checks. They may clone your ATM or debit card and make electronic withdrawals in your name, draining your accounts,” and “they may take out a loan in your name.”
The fourth way is with government documents fraud. The thieves “may get a driver’s license or official ID card in your name buy with their picture. They may use your name and Social Security number to get government benefits,” and “they may file a fraudulent tax return using your information.”
The fifth category is titled other fraud in which the thieves “may get a job using your Social Security number. They may rent a house or get medical services using your name,” and “they may give your personal information to police during an arrest and if they don’t show up for their court date, a warrant for arrest is issued in your name.”
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