HOW IDENTITY THIEVES OPERATE

The Federal Trade Commission wants you to know how the bad guys steal your identity so you can be better prepared to protect yourself. The culprits already know how it works. Now so can you to defend yourself:

They steal wallets and purses or your mail — things that have personal information such as preapproved credit card offers. They may fill out an address change form slips to divert your mail to another location.

Thieves rummage through your trash, or fraudulently obtain your credit report by posing as a landlord or someone who may have a legitimate need for the information, the Federal Trade Commission said.

They can find personal information in you home, or use personal information you share on the Internet. Sometimes they have an inside source, such as a store employee, who will sell personal information from your application to buy goods or services.

Once they have the information, they:

• Call your credit card companies and ask for a change of mailing address on your account. Expect the thief to run up the charges because you aren’t getting the bills and may not know it’s happening.
• Open a new credit card account using your name, date of birth and Social Security number. The big unpaid bills are reported on your credit report.
• Establish a telephone or wireless service in your name. Guess what? They run up a huge bill and don’t pay.
• Open a bank account in your name and write bad checks on the account.
• File for bankruptcy in your name to avoid paying debts or being evicted.
• Write counterfeit checks or debit cards and drain your bank account.
• Purchase cars and real estate in your name.

  Source: the Federal Trade Commission