The Dangers of Identity Theft

Protecting Your Good Family Name

Every year, criminals use computers and fraudulent schemes to steal the identities of unsuspecting people, acts that cost consumers billions of dollars annually. Few identity theft crimes (1 in 700) ever result in convictions.

One of the most surprising things about identity theft is the age of some of the victims. According to the Federal Trade Commission, 31 percent of reported victims of identity theft are teenagers. They make attractive targets because they have good credit ratings, seldom carry much debt, and may be less savvy about keeping their personal information secure.

What Identity Thieves Want

Identity thieves want any information that normally appears on a loan application—names, Social Security numbers, birth dates, credit card numbers—as well as passwords and personal identification numbers (PINs). Thieves can use this information to create fraudulent accounts for their own use—and then go on spending sprees that end up on your credit report. We've all heard horror stories about how hard it is to clear your good name after your identity has been stolen. It can take years.

Thieves most often steal information through a scam called phishing. That means they spam the world with e-mail that appears to come from a legitimate source such as a bank or software company and, under some false pretense, ask you to submit credit card information, Social Security numbers, or other personal data. Frequently they'll send you to a very legitimate looking web site to capture this information. Don't go for it. It's a lie. Legitimate companies do not do this.

There are many other ways in criminals try to gather your personal information, but you don't have to be a victim. In fact, you can help keep your family's personal information secure with just a few simple precautions.

Next: Protect Yourself and Your Family from Identity Theft

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