Once a thief has obtained your personal information, there are many ways he or she could use it. Here are a few:
Credit Card Fraud: Credit card fraud generally appears in one of two ways:
Application Fraud - In this type of fraud, new credit card accounts are opened in your name and, when the thief uses the card and doesn’t pay the bills, the delinquent accounts will appear on your credit report.
Existing Account Fraud - A thief could change the billing address for your current credit cards so that you no longer receive the bills. Then he or she can run up charges on the account and, since the bills are being sent to a different address, you might not realize anything has happened for quite some time.
Bank or Finance Fraud: Once an identity thief has access to your personal information, he or she could open a bank account in your name and start writing bad checks. He or she could clone your debit or ATM card and begin making electronic withdrawals, usually until your accounts are drained. He or she might also create and use counterfeit checks with your name and account number. The thief might also take out one or more loans in your name, then default on them.
Government Documents Fraud: The thief could use your Social Security Number to get a driver’s license or ID card issued in your name, but with their picture. He or she could also use your Social Security number to get government benefits or to file a fraudulent tax return in your name.
Other Types of Fraud: While a lot of identity thieves are after money, a lot more are after your identity for other reasons. An identity thief could apply for jobs using your name and social security number. He or she may use your name to obtain utility services, like electricity, heating, cable or telephone (including wireless). The thief might try to rent an apartment or house using your name. An identity thief might even give your personal information to the police during an arrest. If he or she doesn’t show up for their assigned court date, a warrant is issued…for your arrest!
