What is identity theft? What to do if someone steals your identity. |

14 min readJan 23, 2021

In 2019, more than 14 million consumers were victims of identity theft.

That number shows that 1 out of every 15 people had their identity stolen.

This means that you are more likely to have your identity stolen in the current digital world than your home burglarized or your car stolen.

Do you get the picture?

What exactly is Identity theft?

Identity theft is a type of cybercrime.

It is the practice of using illegal methods to get a person’s identifying information.

Do you know what an example of identifying information is?

Here are some examples of identifying Information; home address, phone number, official names, social security number, and birth date, credit card or bank account information.

A useful definitional model of identity theft has been proposed by Sproule and Archer.

See the figure below for the model.

Drawing from the model, identity theft is defined as a process involving two stages:

1) The illegal collection of personal information; and

2) The fraudulent use of that personal information

So, ID theft can be defined as; first the illegal collection of personal information, and the later use of that information to commit a crime.

How does Identity theft work?

It’s very easy! There are many ways identity thieves can get your personal information

For example — Identity thieves can steal your personal information directly by stealing your purse containing credit cards and bank information.

…Or indirectly by raiding through your trash for discarded personal information in a practice known as “dumpster diving.”

Have you ever had food at an eatery, paid with a credit card, and forgotten to get your copy of the credit card receipt?

Did you know that many of these receipts have your credit card number for anyone to see (and use)?

And, if you’ve signed them, your name and signature are also right there for someone else to copy.

Some dishonest person can come across this information and use it to buy things by phone or on the Internet in your name.

You won’t know about it until you get to check your statement (a good reason why you should always check the charges on your credit card statements!).

All they have to have, in most cases, is your mailing address, which can be looked up in a phone book or easily found on the Internet.

Credit card fraud is identity theft in its most simple form.

It can be done either through a scenario like the one mentioned above, or it can happen when your pre-approved credit card offers fall into the wrong hands.

All a person has to do is get these out of your mailbox (or trash can) and mail them in with a change of address request and start spending.

Someone can even apply for a credit card in your name if they have the correct information.

You won’t know about it until the credit card company tracks you down and asks for payment for the items “you” have racked up.

If I get hold of your name, social security number, and date of birth, I can get loans, access your existing bank accounts, open new bank accounts, lease or buy cars, get insurance, you name it.

Think about the things you throw in the trash. Do you throw your pay stubs away once you’ve recorded the amount in your checkbook?

Take a look at some of the information on that piece of paper you just tossed in the trash:

Your full name

Your address

Your social security number

Your complete bank account number (if you have direct deposit)

Your employer and its address

Your rate of pay

Now, think about the types of information you have to provide in order to get a credit card or a loan or lease a car.

There is very little additional info that is needed to get that loan.

Let me tell you something…

It’s not difficult to “create” documents using someone else’s social security number, bank account numbers, and other personal information.

That’s a scary thought! Isn’t it?

Imagine finding out that someone had gotten a mortgage in your name.

Clearing that up with the bank and getting it off of your credit history would be quite a battle, wouldn’t it?

You bet!

What methods do identity thieves use to steal my information?

Your personal data can be found in many places, especially the publicly available information someone can access about you

Here are other ways ID thieves can steal your personally identifiable information. (PII)

Your personal data can be harvested out of trash cans dumpsters, known as “dumpster diving”
A salesperson or waiter could cram your personal information
An ID thief could get hold of your PII from your employer files either secretly or with the help of an insider.
An insider ID thief could get hold of your Personal Data from your hospital records
Your PII Could be bought or found online for free
Your personal identifiable information could be gotten from your landlord’s files
You could be tricked into giving it out yourself through email or when you click on malicious links
It could be gotten from your computer using mirror keystrokes to capture credit card account information and more
It could be gotten through hacking into big company’s websites.

There are many ways but that would be all for now…

What are some real-life examples of Identity Theft?

Identity theft happens to millions of people all over the world including children.

In 2017, cybercriminals stole the identities of more than one million US children. As a result, the affected families lost a total of $540 million.

Here are three disturbing real-life examples of ID theft…

Lara Love and David Jackson stole credit card numbers from neighbors.

Lara Love and David Jackson were arrested in 2009 because they were able to steal information such as credit card numbers through the Wi-Fi networks of neighbors. In total, they have robbed about thirty people.

A pregnant woman in shock after she found out that she was wanted for murder.

A six months pregnant woman, Nicole McCabe was out driving on a Wednesday when a news bulletin told of three Australians being linked to the murder of Mahmoud al Mabhouh in a Dubai hotel room…

Then she heard her own name read out. She was in absolute shock!

It turns out that Nicole, along with the other two Australians, had their identities stolen.

She still had her real passport, but the thieves used her personal information to create a new fake passport.

Luckily, the fake passport did not have her picture on it — it was the thief’s photo — so the theft of her identity was a bit more obvious. Read more of the story by clicking here

A real-life story from a safe smart living website

Kimberly Alt posted an article on her website about 8 real-life examples of identity theft and how they were resolved.

I thought they were pretty educational and I think you should go ahead and read them by clicking here

What are the different types of Identity theft?

There are many types of identity thefts that can steal your information and use it illegally.

Understanding them is necessary because you can only prevent what you know.

Here are the types of identity theft you can expect and actions of how to stop them.

Account takeover fraud

Account takeover is when a fraudster steals your identity and uses it to access and take control of an account.

It is a dangerous type of identity theft since criminals can do anything as the owner would.

There are a few examples of account takeover with varying consequences.

For example, a hacker can hack your Facebook or Twitter account and use it for illegal activities, such as sharing nude pictures and videos or contact other people to con them.

In another example, a fraudster can steal your banking identity and access connected accounts.

The criminals can use funds in the accounts to purchase illegal things like drugs.

An investigation will show that your banking account and identity were used to commit the crimes, leaving you in trouble with security agencies.

Credit Card Fraud

Many people use credit and debit cards in all their purchases.

Therefore, criminals attempt to steal the cards’ credentials (passwords and usernames) to use them for making fraudulent and illegal transactions.

Credit and debit card fraud can happen in different ways.

The most common one is when a fraudster has physical access to the card and knows the PIN.

Using the card physically is as easy as you use it for shopping.

However, other advanced methods like card skimming can be challenging to detect.

It is where criminals use a device to collect card information.

The device, called a skimmer, collects the data once a con artist swipes a card.

Irrespective of the method used, debit and credit card fraud can harm you in many ways.

You might find a spike in credit card balance since someone has used it extensively without your permission.

You might also receive a call that your credit card was used to buy illegal things, and you are wanted by the police.

Child Identity theft

An ill-intention person, mostly within the family, can perpetuate child identity theft by using social security numbers, birthdays, addresses, and other personal information to open fraudulent accounts.

These malicious actors can apply for government benefits, take loans, or commit other fraud that racks up debts in the child’s name.

Child identity theft comes back to haunt the victim when they apply for legitimate credit or government benefits.

They bear the burden of paying for unpaid balances taken by cybercriminals.

Online Shopping Identity Theft

Online shopping identity theft happens in two main ways;

The first method is where cybercriminals use their hacking skills to hack your shopping accounts if you have any.

Online shopping websites like eBay and Amazon require customers to create an account and save card information, such that you don’t need to fill it up every time you shop for something.

Suppose hackers manage to hack an online shopping account.

In that case, they can assume the account owners’ identities and use the saved card information in unapproved purchases.

A victim usually finds purchases they do not remember making.

The second way is when attackers hack the entire shopping website.

A compromised eCommerce website can enable fraudsters to access any shopping account.

The hackers can either steal customer information and use it to access and use your shopping account without your permission or redirect you to a fake website.

They can access any information, including usernames and passwords, you input on the phony site and use it later.

Medical Identity Theft

Medical identity happens when an individual poses as another person to receive medical care.

Medical identity theft only happens when your medical information falls into the wrong hands.

Types of medical fraud data include health insurance numbers, social security numbers, and a patient’s treatment history.

The following are examples of medical identity theft:

Using a person’s identifiable information to book procedures like medical tests and surgeries. All bills end up going to the insurance provider of the individual whose identity was stolen
Stealing an individual’s medical and insurance information and use it to purchase medical equipment and prescription.
Some health providers commit medical identity theft for financial gain. The most common way is using a patient’s identity to file fraudulent insurance claims.

In 2019, the healthcare industry recorded the second-highest number of cyber attacks and breaches.

It means that medical identity theft cases are many, so, you should know how to protect yourself.

Internet of Things (IoT) Identity Theft

IoT consists of anything connected to the internet, including smartwatches, smartphones, smart fridges, and CCTVs.

IoT technologies provide a lot of conveniences since they link to one another to run vital processes.

However, the connectedness provides fraudsters with an opportunity for stealing a person’s identity.

IoT identity theft happens when a criminal hacks a device like a phone and uses it to access all connected IoT devices.

Most of the devices connect to each other through accounts like Google accounts or those used to run a smart house.

Since almost everyone uses IoT devices, it is important to understand how to prevent IoT identity theft.

How can you protect yourself from identity theft?

You can’t simply sit there and assume that your identity can’t be stolen, and go about your life — You have to take charge. It can happen to anyone!

Here are some things you can do to protect yourself.

Social Security Number

DON’T give out your Social Security number to any person or company except it is very very necessary.

Don’t put any other information on your checks

DON’T put any other information besides your name and address on your checks, and be careful with your checkbook both when you’re writing checks and when it is lying around. Someone can get a hold of information during the short time it takes you to write a check.

DON’T connect to Public Wi-Fi Networks you don’t know

Hackers set up Wi-Fi networks since they know how people love connecting to use free Wi-Fi, while in the real sense, they use it to monitor and collect information on the websites you visit.

USE Identity Theft Prevention Services

card issuers provide many systems to prevent credit and debit card theft. Understand how the system works and what is your role in keeping the cards safe. Always report to the card provider anytime you find activities you don’t recognize.

Shred sensitive Documents

SHRED (cross-cut) any sensitive documents before you throw them into the trash.

NEVER give out PII on the phone

Never give out PII on phone to someone you don’t know and who initiated the call. Often, ID thieves call their victims pretending to be their financial services company and ask for information to be provided over the phone.

Monitor your credit card account activities

Always monitor your card every day to know if it has been used in illegal activities. You can also prevent medical identity theft by reviewing any health provider notices to detect unusual occurrences.

Enable Two Factor Authentication

Use two-factor authentication. Two-factor authentication is a process where you must prove to be the account owner to access and use it. It is an effective way of enhancing password security.

DON’T use weak passwords:

It is IMPORTANT to know that account takeover identity theft only happens when a person steals information like account username and passwords. So, protect all your accounts with a strong password. You must change the passwords frequently to make sure hackers cannot crack them.

DON’T share your passwords with family members.

Do not share your online accounts with anyone. Keep your usernames and passwords a secret. Do not share with friends or family members since some of the people close to you may be behind identity theft incidents affecting you.

Be Vigilant

Some websites may be a mirror image of the real websites and challenging to detect. Pay close attention to the URL before you provide sensitive information that can be used to steal your identity

REACT QUICKLY if a creditor or merchant calls you about charges you didn’t make.

This may be a sign that someone has stolen your identity. Investigate immediately.

FIND OUT WHY, If you’re ever been denied credit,

FIND OUT WHY, If you’re ever been denied credit, especially if you haven’t reviewed your credit report lately. This may also be a sign that someone has stolen your identity and is doing things in your name.

What if it happens to you… What steps would you take after an ID theft?

What if you find out that your identity has been stolen, what are you going to do about it?

List of Steps

Step 1

The first thing to do is to report to the police and get a copy of your police report. Most credit card companies, banks, and others may ask you for it in order to make sure a crime has actually occurred.

Step 2

Secondly, contact your credit card issuers immediately. Close all your existing accounts and new account accounts. Make sure that the old account reflect that it was “closed at consumer’s request” for credit report purposes.

Step 3

Close any accounts the thief has opened in your name. If you open new accounts yourself, make sure you request that passwords be put on those accounts.

Step 4

Next, call the fraud units of the three credit reporting bureaus and report the theft of your credit cards and/or numbers. Ask that your accounts be flagged with a “fraud alert.”

Step 5

File a complaint with the Federal Trade Commission (FTC). FTC is the federal clearinghouse for complaints by victims of identity theft.

How to Report an Identity Theft

You can report identity theft to the Federal Trade Commission (FTC) online at IdentityTheft.gov, a federal government’s one-stop resource for identity theft victims.

You can access streamlined checklists and sample letters from IdentityTheft.gov to guide you through the recovery process.

Once you report identity theft to the FTC online portal, you receive a report and a recovery plan. You can use your IdentityTheft.gov account to update your recovery plan to track your progress.

Alternatively, you can report identity theft incidents by phone at 1–877–438–4338.

In other cases, you may choose to report an identity theft incident to a local police station. This option is best if you know the suspect or in situations where the malicious actor used your name to interact with the police.