Lesser Known Facts About Identity Theft

Many facts about identity theft are now common knowledge. Identity theft has been rising every year for at least a decade, and it has exploded wildly along with the growth of the Internet. Some hackers steal personally identifiable information and then sell it in private forums to other, would-be thieves. Phishing websites collect your personal information to facilitate identity theft, the list goes on.

Yet there are lesser known facts about identity theft that may help shape your plans to prevent it and how to monitor for it.

Many, but not quite a majority, of cases of identity theft involve family members and close friends. Parents have used a child's Social Security Number to get credit cards and even home mortgages after their own credit is shut down. Unfortunately, this ruin's their child's credit just as they are starting their own lives. And many financial institutions won't let the loans be forgiven unless the child presses charges against the relative. Making up a Social Security Number (SSN) on a credit card application is identity theft as well as fraud. Since credit reporting is based on the Social Security Number, using a false one results in them checking someone else's credit. Illegal aliens using your Social Security Number are committing identity theft as well as fraud, whether they use your name as well or only your SSN along with their name. This is done to pass background checks and determine if they are legal to work in the United States. Identity theft has also involved American born children of illegal aliens. Once the child has a Social Security Number, the parent uses that SSN to work and apply for credit. Unfortunately, the teenager can discover they now have a long work history and are at risk of audits by the IRS when they try to work at a fast food joint. The IRS may say they owe taxes on another job or have to explain the Earned Income Tax Credit (EITC) claimed when they were a minor. Impersonating someone's identity is increasingly used to gain access to health benefits. From using another's Medicaid card and ID to listing the health insurance information of a friend, this permits someone not entitled to the benefits to get free or discount care. Unfortunately, it also adds incorrect information to the correct person's medical records. This can result in bills sent to someone who never even received care. In rare cases, the medical insurance cap is reached and the person paying the health insurance premiums is unable to get care due to the health insurance fraud. If someone is working using your Social Security Number and then claims retirement benefits, the payments go to whomever retires first. If it isn't you, you will face an uphill battle to prove the money is going to the wrong person. And there are as of yet no court cases in which the person received the benefits paid to the identity thief. Basic shredding of your bank statements is sound advice but of limited use. Anywhere your Social Security Number and contact information are listed is vulnerable to ID theft. Your doctor's office can be hacked and your personal information stolen as easily and reliably as the Department of Motor Vehicles. An attorney's records include the SSN, address and phone number, allowing those who steal legal records to gain access to even more information for identity theft. You cannot control the information security of all of these hundreds of locations where this information is stored.

While you can never be 100% safe from identity theft, it's important to remain alert. Catching identity theft early is the key to preventing financial ruin. There are services to help protect your identity, but everyone's situation is different, so this may not be the best option for you.

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