What is identity theft?

According to the government, identity theft occurs when someone uses your personal identifying information, like your name, Social Security number, or credit card number, without your permission, to commit fraud or other crimes.

But how does it happen? In spite of what you hear on the news, there are several ways a thief can get your information beyond the Internet:

• Digging through your trash – believe it or not, thieves can still look through your trash to find old receipts and banking slips.
• In person – Some thieves take your credit card numbers right from under your nose. When they process your card, they use a storage device that memorizes your numbers.
• Via the Internet – Some criminals simply ask for your information online. Called phishing, it occurs when someone pretends to be a financial institution or creditor. They send spam or pop-up messages and ask for personal information.
• Stealing your address – Just by borrowing a change of address form, a thief can divert all of your paper bills to his address. It's old fashioned, but it works.
• Pick pocketing – Even more basic is simply taking your identity information from you via your wallet or purse. That can also include mail from your mailbox or personnel records from your workplace.
• Pretexting – Pretexters use false pretenses to obtain your personal information from financial institutions, telephone companies, and other sources. They'll call you or visit you in person.

Now that you know about identity theft, learn how it can affect you.