Identity theft in short is the usage of other people’s sensitive information or data without the knowledge of the rightful owner to their own personal benefit.  This can occur in many forms.  From the stealing of credit cards and following that, their usage all the way to the stealing of login details for bank accounts that allow the person to access and transfer other people’s money.  Identity theft can cause millions of dollars to disappear in the blink of an eye, all the way through to the destruction of someone’s reputation.

Most people are aware of the most basic forms of identity theft, one of them being the stealing of a credit card, which is consequently then used and ran to the ground.   The FTC recently released a report which highlighted that 20% of all identity theft cases involved use of a credit card in someway.  Ranging from using the credit card, to opening and creating further credit card accounts, or opening up further loan type accounts in the stolen identity’s name.  This 20% isn’t the most critical.

The other component of identity theft is where the deeply troubling issues and incidents occur.  Imagine having your personal information and sensitive data stolen and used in the circumstances of crimes and convictions.  Imagine pulling pulled over in your car by a police officer who then goes on to arrest you for a crime you haven’t committed.  Or being in an emergency and the hospital treats you in a different way because someone has used your personal identity to perform some sort of operation that affects how your current case is treated. Your medical records would subsequently be in accurate and not trusted.

The problem with identity theft is that unlike in the past where all you had to do was keep your social security number private and shred your personal mail to ensure personal identity data and information could not be stolen, criminals are a lot smarter nowadays and those two acts don’t guarantee the security of your data and sensitive information.  You now need to check all you bank statements, credit card records, bills and letters to ensure that the presented information is accurate and up to date.  Otherwise you may be missing some funds that should be in your account.  Most forms of identity theft are preventable but the problem lies in the fact that it requires dedication and a heap of time to ensure you are not the victim of identity theft.   Most people need to monitor their data on a daily basis and if they can’t, it’s suggested you hire a company that can do it for you.

Many baffle themselves with question that what is a credit freeze and what are the benefits associated.  Moreover, at times the conception of fraud alert protection is also mixed up with credit freeze. Credit freeze and fraud alert are totally two different protection tools for identity theft, and should not be confused.

Credit freeze

A credit freeze also known as credit lock, where you require paying for totally locking your credit. This states that no lender will have access to your individual credit report. This has been available by the bureaus in all 50 states. In case, you want to state an application for credit, you need to ask the credit agency to terminate the credit freeze. It is only after that, the lender will be able to gain access to the credit report. Afterwards the credit freeze can be reinstated.

The main three credit bureaus- Experian, TransUnion, and Equifax- charge a yearly fee of $10 for credit freeze.However, the draw back with credit freeze protection is that it may become expensive, since you to give a fee for implementation firstly, fee for lifting it when requires, and also an additional fee for reinstating it. You can get some relief from the charges, if you already have been a victim of identity theft.

Another drawback is that credit freeze is time-consuming. The agencies take at least three days before approving your request. At times, it also becomes difficult to open a bank account for yourself, as you need to undergo the process of lifting credit freeze. However, this indicates there can be no instant credit, or even when it is an emergency, you must wait for those three days.

Fraud Alert

On the other hand, fraud alert is the flag installed by credit bureaus on your individual credit report. With this service you instantly get notified if any credit card or bank loan is created using your personal information. Unless and until the action is verified, the transaction cannot take place. Unlike, credit freeze lenders do have access to your personal credit report, and they can check your credit report without your permission. But these fraud alerts gives you the red signal that there is a probable fraud.

Fraud alerts exist in two types. One is short-term fraud alert that will last for ninety days. Another is prolonged fraud alert offers protection for seven years.

Which one is better secured?

A credit freeze is much more secured comparatively to fraud alert, as entirely locks up your credit from getting any access. Nevertheless, there are many inconvenience related to credit freeze.

The best news is, if you are concerned about protection from identity theft than you can adopt both the services. All you need to do is contact the credit bureaus or enroll with one of our recommended Identity Theft protection services.

Identity theft remains one of the most significant of all crimes that are being committed in many countries around the world today.  In fact, the sad reality is that the frequency of identity theft is on the rise.  An ever increasing number of people of all ages (literally of all ages) are finding themselves the victims of identity theft with each passing year.  There actually are a number of reasons why identity theft is on the rise at this juncture in time.  Through this article you are provided an overview of why ID theft is on the increase – on the increase at a striking and alarming rate.

When all is said and done, by understanding why identity theft is on the rise you will be in a far better position to be able to protect yourself from this type of crime today and into the future as well.

The Economy

Experts agree that one of the reasons why identity theft is on the rise at the current time is because of the economic challenges people are facing.  Unemployment and underemployment are reaching record levels.  More and more people are finding it difficult to make ends meet.  Sadly, some of these individuals are electing to pursue illegal courses of action, such as ID theft, in order to obtain money that they need and require.

Increase in Drug Use

Another reason why identity theft is increasing across the country arises from the increasing number of people who are using illicit or illegal drugs.  The fact is that drug use and identity theft really do seem to go hand in hand.  As more people end up using drugs, more people also seem to be ending up involving themselves in different types of theft crimes, particularly ID theft.  In fact, extensive studies have revealed that a vast majority of people who use drugs such as meth are also directly involved in theft crimes of different types, particularly identity theft.

The Rise of the Internet

As more and more people take to the Internet, as more and more people are transacting business online, an increasing number of individuals are being exposed to predatory identity thieves.  The Net is a haven for people who are intent on stealing identities.  Even when an Internet user is very vigilant and careful, it is still possible that the individual will fall victim to an identity thief.

Lax Security

Unfortunately, many businesses are not being appropriately vigilant when it comes to protecting the financial and personal information of their customers or clients.  Lax security is yet another factor that is contributing to the rise in identity theft.  With increasing regularity, identity thieves are able to obtain personal and financial information from businesses.

Consumer Carelessness

Yet another reason why identity theft is becoming a more widespread crime rests in the fact that many consumers simply are too careless when it comes to managing their financial and personal information.  The difficult reality is that these people can end up having their identities stolen without even knowing what has happened.

This question is asked by a lot of people around the world each time they are told of the repercussions of exposing their personal information to dubious persona or companies. You will be at a greater risk of not noticing in time that you are being defrauded, especially if your credit card is not listed in a protection program. In case there are not organizations offering credit monitoring services in your area, you will need to look out for the following telltale signs which may imply that you are a victim of identity theft.

Be on the lookout for statements and bills which do not arrive to you when time is due. The reason for their disappearance is that someone might have stolen the mail from your mail box, or worse yet, changed your mailing address.

If you are made aware that some bank accounts have opened in your name without your knowledge, the concerned must have gotten access to your personal information. Such accounts are used to write fake checks which bounce. Report such accounts to your bank or the authorities.

Look out for spelling mistakes and incorrect information on your credit application forms. Thieves come up with fake names, addresses or even Social Security numbers when they are trying to lure potential victims.

There may be some unfamiliar withdrawals or charges on your credit reports of which you may not know about. This is a sign of malicious use of your credit card. Report immediately to your creditors such concerns and be sure to get advice on what to do.

You may start receiving phone calls for persons claiming to be creditors who you have never done any business with. The impostors ask for clarifications or confirmations of personal details, which when given will be used to defraud you. Avoid such calls and report them to the authorities for proper action.

You may also be denied to use your credit on some actions. Make inquiries immediately to solve the problem before someone runs you into huge debts.

Identity thieves steal your identity by watching as you send mail, write checks and many other methods. These crooks may be standing behind you and write down information such as your social security number and account numbers. Other fraudsters also follow someone to the ATM machines pretending to also withdraw money and watch you enter your pin number. Once the thief gets hold of your pin number he can then snatch your wallet and withdraw your cash.

More over a thief is also able to steal your identity by virtue of getting your records at work and from unsuspecting business acquaintances. This can be done by previewing proposals, data entries made at work or provided in business websites. Some fraudsters can steal your identity by asking for your credit cards posing as insurers, landlords and even bank representatives. Here they demand that the information needed is for legal purposes.

Thieves can also break into homes and get the information themselves. Meaning some go to an extent of breaking into homes. You should beware and learn to put your personal information in a safe or lock your house when not at home. Fraudsters can also buy your information from sources on the inside. What I mean is that they pay someone who has all your information to give to them; this is called an inside job. This can occur at any institution that retains private records, including your own job.

Many people have a habit of posting all their personal information in emails and chatrooms. This is a very risky act as there are many places, such as facebook for example, where people write all their information including their addresses and names of friends. Let yourself be warned that sharing information on the internet with friends is not a good idea at all. Identity thieves can also acquire your information by going through your trash at home and at work.

Always be careful since identity thieves are growing in numbers and will do anything to stumble on your information and profit from it.