Identity theft prevention and detection methods

Identity Theft Prevention, Detection, And Correction: The Roles of the Individual and the Government

Few things are more important to the average consumer in these volatile times than their financial stability. Having a good name when it comes to credit is essential for buying a new house or car and planning for the future. While there are many things consumers can do that might damage other credit, one of the worst possible hits can come from something that isn't really their fault at all. Everyone is a potential victim of identity theft, from infants to people long since deceased; through falsified documents and the wonders of the electronic age, it has possibly never been easier to pretend to be someone else in order to use their money, name, credit cards, and other features of their financial and private identity to make purchases or engage in other illicit activities without any regard for the consequences, leaving the victim to clean up whatever mess is left behind.

Identity thieves can operate in numerous ways, many of them remarkably simple. Simply "shoulder surfing," or surreptitiously observing a victim as they punch in a credit card number on a phone or a password on a public computer screen can lead the identity thief to all sorts of personal information and access to a victim's entire financial world (USDOJ 2009). False email schemes called "phishing" are also a common way that identity thieves take advantage of unwary consumers online, as are filing false change of address forms to divert private information and plain old-fashioned theft of wallets and purses (FTC 2009). Once they have a victim's personal information, there is virtually no limit to what an identity theft can do -- access existing accounts, start new ones, even change social security numbers!

There are, of course, things that can be done to prevent identity theft from occurring. The most direct action that can be taken is exercising extreme caution in what type of personal information is handed out, and to whom. Certain financial institutions and government agencies might need personal and/or financial information specifically to verify identity, and to make certain determinations for various programs, interest rates, and other determinations. This information should only be given when the consumer has contacted the bank, financial institution, or government office, however, and not when someone purporting to be from these institutions or offices contacts them -- this is a common ploy used by identity thieves to obtain sensitive information (USDOJ 2009). Careful and regular monitoring of individual credit reports its also an effective tool for catching cases of identity theft early and stopping it before it becomes a bigger problem (FTC 2009).

There are also many things that consumers can do if they have already been victimized by identity theft. First, knowing and exercising their rights to place fraud alerts with the major credit reporting agencies will ensure that the damages will be minimized, and could help lead to the arrest of the identity thief (ITRC 2009). When a Social Security number is stolen, contacting the Social Security Administration can help to place a watch on its use as well (SSA 2009). This particular problem can lead to many complications, as obtaining a new Social Security Number can create many difficulties for the victim while keeping the old number might allow the thief to continue using the victim's identity (SSA 2009). Generally, though, a new number is not necessary to stop most identity thieves.