Five Types of Identity Theft

By now, every adult should know that identity theft isworking. Apparently, someone in another city had been
the fastest growing crime in America. It has becomeusing his SSN to earn wages in his name. Jack was
an epidemic, leaving everyone at risk, including children,told that he had to prove that his identity had been
adults, the elderly, those with good credit, bad credit, orstolen.
no credit. And, to make matters worse, most people3. Medical identity theft. Someone steals your identity
do not know if their identity has been stolen.and either obtains medical insurance in your name or
The biggest misconception is that identity theft onlyuses your current medical insurance policy to obtain
affects or involves your credit. If you, too, believe thattreatment or prescriptions. You can be denied health
identity theft only affects or involves your credit, thencoverage or lose your current health coverage
you might want to keep reading.because of false information placed in your medical
In addition to credit related identity theft, there are atrecord.
least four other categories of identity theft that will notAn identity thief received treatment for an injury to his
necessarily affect your credit, but can ruin your life.hand using a stolen identity. Now, the identity theft
The following are real life stories.victim has been receiving letters demanding payment
1. Character identity theft. Someone impersonates youfor drugs and services rendered to the thief.
and commits a crime in your name resulting in4. Driver's license identity theft. Someone commits
warrants issued in your name, arrests made, and timetraffic related offenses in your name. When the
spent in jail.identity thief fails to appear in court, warrants are
Donna has been impersonated by her sister for manyissued in your name.
years. Unfortunately for Donna, her sister has anIn 2003, Alex's driver's license was revoked because
extensive criminal record. In order to clear her name,he had another driver's license in another state
Donna has had to hire an attorney. She has been toldrevoked due to criminal charges. In addition, Alex had
that once your name is associated with a crime, it canwarrants out for his arrest in the other state. After
never come off.about a year of working to clear his name, Alex's
Someone with a criminal record stole Harry's wallet.driver's license was reinstated.
Unbeknownst to Harry, the thief then committedAn identity thief with a poor driving record obtained a
several crimes in Harry's name. Unfortunately, thiscopy of Sara's driver's license. Now, because of the
criminal activity was entered into the database of aidentity thief's poor driving record, Sara's license has
background check company that provides data tobeen suspended, and she is in danger of losing her
potential employers. Harry lost his job and has beenauto insurance.
unable to find work because of the false information.5. Credit identity theft. Someone uses your information
Three years ago, Jane's purse was stolen byto obtain loans, goods, or services and does not pay
someone she knew. The identity thief bought a carthe bills. The accumulating unpaid bills end up going to
with Jane's ID and committed other crimes in Jane'scollection, which can affect your credit.
name (writing bad checks and burglary). No one in lawFor over six years, Kate has been a victim of identity
enforcement believes Jane when she says she is nottheft. Even a fraud alert placed on her credit report
the criminal, not even the District Attorney who ishas not stopped the identity thief. As a result, Kate can
charging her with the crimes.not purchase a home because of bad credit.
John, a man from San Diego, traveled to Mexico toAn identity thief wrote bad checks and opened
visit his relatives. On his way back home, he wasseveral credit card accounts in Erica's name.
stopped and told that there was an arrest warrantConsequently, Erica's application to open her own bank
issued in his name. Apparently, someone had beenaccount was denied. Erica has had to hire an attorney
committing crimes in his name and using his Socialto clear her name. This has cost her over $4,500.
Security number. John was arrested and taken to SanSo, you can see that once an identity thief has your
Francisco where he spent 10 days in jail. After finallyidentity, he/she can do just about anything including
convincing a police office that he was not the criminal,ruining your life. Don't think you are immune. According
John was released and left stranded without anyto the Identity Theft Resource Center, there have
money.been at least 111 disclosed incidents of data breaches
2. Social Security Number (SSN) identity theft.since January 2005 that could potentially expose 53
Someone steals your SSN and obtains employment inmillion individuals to identity theft. This number is steadily
your name. The thief's employer reports wagesincreasing. Further, according to the FTC, over 27,000
earned to the IRS under your SSN leaving you to paypeople per day have their identities stolen in America.
income taxes on these earnings. Further, an identityYour information is not safe. As long as others
thief's use of your SSN can cause you to lose life(employers, credit card companies, medical facilities,
sustaining benefits.etc.) have your private information, you are always at
Paul received a letter from the IRS stating that he hadrisk for identity theft. All it takes is for an employer to
earned additional income in 2003. Paul never earnedlose your information or give it away or one person
this additional income. An identity thief used Paul's SSNemployee to steal the information. A cellular phone
and earned wages in Paul's name. Now Paul's credit iscompany experienced just that when employees used
ruined, and the IRS wants to be paid.customer data to create fraudulent accounts. The
Alex lost his wallet, and he never bothered to report itbogus accounts were used by the thieves and their
to the police. In 2005, he filed his tax return andfriends to ring up thousands of dollars in calls.
expected a refund. Instead, he received nothing. TheWhen it comes to protecting your identity, being
IRS withheld his refund check to pay off back taxesproactive is the only practical way to go to avoid the
he owed from 2002. Apparently in 2002, someone hadfrustration, time, and expense of restoring your identity
used Alex's SSN to earn wages in Alex's name. Thisand name. Some things you can do to prevent identity
"unreported income" left Alex with a $9000 tax bill.theft include not giving out your personal information,
Someone has been using Mary's SSN to earn wages.shredding unwanted mail, and not carrying your SSN
Mary, who had been receiving AFDC (Aid to Familiescard with you. Also, continuous credit monitoring is an
with Dependent Children) benefits, lost her benefitseasy, effective and often inexpensive way of keeping
because income records show her as having a salary.an eye on your credit at all times to help prevent credit
Jack applied for unemployment benefits, but he wasrelated identity theft.
denied because records showed that he was actually