Basically, it is when your personal identifying information such as name, address, date of birth, social secuirity number are stolen and used by someone else mainly to commit fraud and/or obtain credit. Here are some of the major ways in which your identity can be stolen:

#1. From Trash Cans And Stolen Mail

This is a growing way in which identity theives garner information about you. The necessity of curbside recycling has meant that people throw out vital information such as name, address, credit card information and more without giving it much thought. Items such as payslips, bank statements, pre-approved credit card or home loan offers, telephone calling cards and membership cards are all a good source of personal identifying information. Such is the increase in stolen identities that it is adviseable to obtain a shredder to destroy such information before it is made available for recycling.

In addition, unfortunately some mail can be stolen at various points in their journey. This is a deliberate criminal act and the appropriate authorities – your local postmaster or the US Postal Inspection Service - should be notified if you have any suspicions.

#2. Lost Or Stolen Personal Items

Good old fashioned theft is another way of obtaining your identity. Wallets or purses are the main targets of the identity thief. It is however, it is easier to get help from the police in this instance, as physical goods have been stolen. You still need to take steps to prevent your identity from being stolen. (Visit here for more information)

#3.Fraudulently Obtaining Your Credit Report

Your credit report is a source of personal identifying information that can make any identity thief happy. Fortunately the credit bureaus (Transunion, Equifax and Experian ) are getting smarter about who to divulge information to. In addition, they are replacing certain sensitive information such with asterisks and only those who are already acquainted with your social security number are given that information.

Although, your credit report may not tell all, it gives enough background information to satisfy any curious eyes. Your best defense is to check your credit report with the relevant credit bureaus to find out who else has been checking-up on you. (See your credit report here)

#4. Dishonest Employees

Not all employees are honest and increasingly criminals are infiltrating financial institutions especially, in order to easily obtain the information they require – YOUR IDENTITY! In fact there have been several TV documentaries on how complete personal identifying information (name, current address, social security number, national insurance number for UK, credit card information, date of birth etc) databases are being sold in places like India for as little as $200.00!

Due to globalisation, outsourcing to cheaper countries has become the norm. Hence, identity theft is born not just in the US but in many country as well. If you are particularly worried about this trend, you may wish to investigate where your bank’s customer service is based.

#5. Emails

By virtue of them being internet based, emails can be vulnerable to all sorts of predators including identity thieves. It is very important NEVER to send sensitive information such as credit cards, social security number, address and such like in email. Phishing has also increased and it’s now the primary way in which your details can be stolen on the internet.

#6. Hackers

Hackers can be ordinary teenager looking for a challenge or hardened criminals looking for more information to commit fraud. Recently TJ Maxx had hackers breaking into their database. In such instances, any personal identifying information can be used fraudulently.

See also:

How To Prevent Identity Theft

Prevent Credit Card Fraud By Using These TEN Tips