| Identity
theft, an increasingly common form of credit fraud, occurs when
someone assumes your name and other personal information to
take over your credit accounts, open new ones, get a job, take
out a loan, rent an apartment, or otherwise benefit at your
expense. Because it often involves no physical theft, identity
theft may not be noticed by its victims until significant damage
has been done.
Strategies
thieves use
Identity theft takes several forms. Using your account number,
expiration date, Social Security number, and billing address,
an identity thief may contact your credit card company and
change the address on your account. The thief may then make
large purchases on the phone or over the Internet. Because
you won't receive statements, it might take weeks or months
for you to suspect trouble.
A
thief may also use your information to apply for a new credit
card. Unless you check your credit report, you may not be
aware of such a new account until it becomes delinquent. In
some cases, identity thieves have even filed for bankruptcy
in the victim's name to avoid paying the debts run up on such
an account.
Other
types of identity theft don't involve credit cards. Someone
with a bad credit rating may use your personal information
to get a car loan, acquire telephone or other utility service,
or open a bank account in your name.
Learn
to protect yourself
Any type of identity theft can severely damage your credit
rating. For tips on keeping your information away from identity
thieves, see if you've been a victim of credit
fraud If you think you might be a victim, see if you've
been a victim
of identity theft (link to "If You've Been a Victim
of Identity Theft" page).
Get
a free credit report today and make sure nobody else is
using your credit!
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