How Do They Use Stolen Information? 

Now that they have your name, Social Security number, your credit card numbers, your address or other information, they can use it in various ways to steal from you.

Credit Card Fraud

One of the most common methods of using stolen information is credit card fraud. Here, the thief may simply use your own information, such as the credit card itself, to make purchases. He/She may also use the information he/she has obtained to open new credit card accounts in your name. He/She does not pay the bills, which causes these accounts to become delinquent (in your name). They end up on your credit report as well.

Another form of credit card fraud occurs when the identity thieves steal your information, change the address on your credit card statements, and then use the information to run up the bills on already-existing credit cards. You no longer get the bill, but you likely do not realize it for some time.

Phone Fraud

Phone or utility fraud is yet another common problem associated with identity theft. Here, they may obtain a new mobile phone or even other utilities in your name. They use those accounts, never paying the bills on them, and run up the charges. Sometimes, they may be able to access your current information so that they can use that to their own advantage.

They can use your name (and address) alone to set up new accounts for electricity, gas bills, cable television, magazine services, water bills, and so on. Many of these companies will take months to alert anyone of late bills, and yet, during that time, the identity thieves have racked up thousands of dollars of debt in your name.

Government Documentation Fraud

Some of the most serious forms of identity theft involve government documents. For example, some thieves are able to get an actual driver's license using your personal identification information, but with their picture on it. As a result, they can use this to obtain any number of loans in your name.

They may use your information to file a fraudulent tax return that uses their information instead of your own. They may use your name and Social Security number to apply for and get government benefits from numerous agencies.

Financial Fraud

Financial fraud involves the thieves using your information to obtain loans or other types of accounts in your name. They use your name, address, and Social Security number to open new lines of credit through banks or credit unions. They can open a checking account using your name and then write bad checks against it. They may use your existing checking account to write bad checks as well.

In addition, they may be able to clone your ATM card or your bank debit card and then use it to make withdrawals from your account, taking any money you put into the account. They may create counterfeit checks that have your account number on them and then use those checks to pay for any number of purchases.

More Types of Fraud

There are still numerous other ways they can use the information they have stolen from you to achieve their financial goals.

· They may obtain a job by using your Social Security number. This may be
hard to catch since it can go unnoticed for years.

· They may use your personal information to rent a home.

· They may use your personal information, including your health benefits, to obtain medical services under your account (or through the use of your finances).

· They may give your information to a police officer when they are Arrested. Then, when you do not show up for the court date that has been set for the action, the police will issue a warrant for your arrest and come after you personally.

As you can see, identity theft can change your life in many ways. Unfortunately, many of these instances can frequently occur without you being immediately alerted to them. This is where identity thieves thrive. They are able to live for years on your stolen identity, and you will not know that they are doing so.

The longer they are able to create these problems for you, and the more complex their net becomes, the more difficult it becomes for you to untangle your finances and life from what they have created.

Luckily, most types of identity theft are simple and found easily.

How You Know What Is happening

As mentioned, the sooner that you can spot problems with your finances, the sooner that you will stop thieves from ruining your life. It is not always easy, but being diligent is the first step to overcoming this problem.

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