What Is Identity Theft?

Identity theft occurs when your personal information is used without your knowledge or consent to commit fraud. When this information falls into the hands of identity thieves, they can invade your personal life, and that includes plundering your finances.

A Case of Double Identity

Whenever you apply for a credit card or open a bank account, the financial institutions would routinely ask for your social security number. Once these institutions are satisfied with the information they receive concerning your background, you are then approved.

Now imagine a thief doing the same, that is applying for a credit card or a new bank account, on your behalf.

The thief is in possession of your social security number so they can easily assume your identity. They can easily spend all your money on shopping sprees, divert your private mail, or apply for loans--basically do all the things you can do.

The scary part is when the fraud is uncovered, you will be pinned as the perpetrator because these crimes were committed under your identity.

Not Just A Thriller

While all these may sound like the plot of a spy thriller, it is certainly no thrill when you become the victim of identity thieves.

The fact is, victims are put through the harrowing experience of straightening out their lives and restoring their reputations. Imagine the trauma of being denied a job opportunity or refused a loan application. These victims also end up spending a lot of money just to put things back together again.

In 2007 alone, about fifteen million people in America fell victim to identity fraud in one form or another. According to some surveys, the estimate is that 1 out 5 Americans could become a victim. The number of victims have increased alarmingly within the space of one year that some computer publications have described this is as an epidemic.

Laws are being enacted in order to punish criminals involved in stealing personal information and that is all good. Catching the real perpetrators can be an elusive proposition though. Investigators could easily spend years tracking down the criminals. And unlike the thriller where the good guy always wins, there is a realistic chance that the real culprits may never be caught at all.