Identity theft occurs when an individual or group of persons uses your name, social security number or other identifying information, without your authority, to commit fraud in your name and to use your personal information for their own means—including applying for credit cards, a driver's license, a car loan, filing income taxes and even filing bankruptcy in your name.
According to New York State, identity theft continues to be the fastest-growing white collar crime in the United States. With an increase in technology and the dependence on identification numbers, such as social security numbers, the incidences of identity theft in New York have risen significantly.
In many cases, victims of identity theft spend months and even years clearing their credit record and returning to relative financial stability.
According to the Federal Trade Commission, once identity thieves have your personal information, they use it in a variety of ways, including:
- They may call your credit card issuer to change the billing address on your credit card account. The imposter then runs up charges on your account. Because your bills are being sent to a different address, it may be some time before you realize there's a problem.
- They may open new credit card accounts in your name. When they use the credit cards and don't pay the bills, the delinquent accounts are reported on your credit report.
- They may establish phone or wireless service in your name.
- They may open a bank account in your name and write bad checks on that account.
- They may counterfeit checks or credit or debit cards, or authorize electronic transfers in your name, and drain your bank account.
- They may file for bankruptcy under your name to avoid paying debts they've incurred under your name, or to avoid eviction.
- They may buy a car by taking out an auto loan in your name.
- They may get identification such as a driver's license issued with their picture, in your name.
- They may get a job or file fraudulent tax returns in your name.
- They may give your name to the police during an arrest. If they don't show up for their court date, a warrant for arrest is issued in your name.
