A Look at Your Credit Report

Your credit report reveals a surprising amount of information including:

• Your name, address, SSN, and employment information.
• What credit accounts have been opened in your name, and the current status of those accounts—whether they are active or closed, for instance.
• The balance on each account, how much your monthly payments are, and whether or not you make those payments on time.
• What other companies have ordered your credit report in the past. These prior requests are called “inquiries.”
• Your credit score, which determines your “creditworthiness.” Your score is based on such things as whether you make payments promptly, how much credit you already have, and how long you’ve had various accounts. Creditors look at your credit score as a way to predict whether you will be able to pay your bills on time.

How do they know so much?

Some of this information, your name and address, for instance, comes from public records. The majority of it, however, is reported to the credit bureaus by banks and other businesses that have issued you credit. These companies report to the credit bureaus on a monthly basis, telling them what your balance is and whether you’ve been keeping up your payments.

Creditors also let the credit bureaus know when you—or an identity thief using your information—open up a new credit account. So even if there are no other clues that your identity has been stolen, your credit report can tell you if someone has been obtaining credit in your name.

When you apply for any kind of credit—a car loan, let’s say—the bank checks you out by ordering your credit report. Based on your credit history and score, the bank decides whether or not to approve your loan application. If an identity thief has been using your identity to open bogus accounts, those actions will show up on your credit report and negatively affect your credit score. (And guess what? Identity thieves don’t tend to pay their bills on time…or at all. Big surprise.)

The result? The bank won’t exactly be eager to lend you money. Now don’t you want to know what’s on that report?

Identity Theft Warning Signs

If your identity is stolen you need to know about it ASAP so you can stop further fraud and work on repairing your good name.

Here are some major signs that you are the victim of identity theft.

DENIED!
Your application for credit or a job is turned down based on your credit report—and as far as you know, your credit history is good.

RIPPED OFF!
Your credit card, bank balance, or other financial statements show charges you never made. Or you receive a statement for a credit card you didn’t know you had.

HARASSED!
Collections agencies start calling you out of the blue to collect on debts you never incurred.

MISSING MAILS!
This one might seem the most innocent—you might even be grateful at first! But if your bills stop coming, that’s a bad thing. It might mean an identity thief has changed your address on your credit card statement so you won’t notice the fraudulent charges on your account. And guess what? The thief isn’t taking care of those bills for you.

If you have one of these symptoms, don’t assume it’s simply a clerical error, and don’t put off investigating it. Find out what’s up. Your first move? Order your credit report and see for yourself what the deal is.

What Identity Thieves Do With Your Information

Once they’ve got your data, thieves can use it in a lot of different ways. The most common kind of fraud occurs when crooks go on a spending spree to rack up charges on your existing credit card account—but the fun doesn’t stop there!

• They use your credit card or credit card number to charge purchases to your accounts, often changing the address your bills are sent to so you won’t notice right away.
• Using your name, date of birth, and Social Security number, a thief can open a new credit card account in your name.
• With the same info, crooks can apply for phone or wireless service.
• Some thieves use your name to open a bank account and write bad checks. Others counterfeit your checks or steal your debit card number to drain your existing bank account.
• Your identity can be quite handy when a thief wants to take out car loans or mortgages.
• Crooks can use your name when filing for bankruptcy, or co-opt your entire identity to hide a bad credit history or a criminal record and start a “new life.”
• In rare cases, a thief might give your name to police when arrested. When he’s a no-show at his hearing, guess who the cops are coming after with a warrant?

Believe it or not, if your identity is stolen, the chances are about 50/50 that you’ll never find out exactly how it happened. Some kinds of theft—when a crook steals data from company files, for instance—are very hard for victims to trace.

How Thieves Steal Your Information

You don’t have to tattoo your Social Security number on your forehead and lend your credit card to random strangers to become a victim of identity theft. Determined crooks have come up with some pretty sneaky ways to get your digits. Here’s a thoroughly depressing look at how they do it.

SNATCHING YOUR PURSE OR WALLET
Pickpockets and purse snatchers are going about it the old-fashioned way. Not particularly inspired, but very effective.

STEALING YOUR MAIL
There’s a rich bounty of information in the form of credit card statements, new checks, and that unending stream of preapproved credit offers in your mailbox. And it’s not just snail mail. Your electronic communications are vulnerable to theft as well.

DUMPSTER DIVING
No, not the latest extreme sport, just a profitable if rather messy way to get your private info from your trash. Your old computer can also yield some great stuff to a crook with a few techno-skills.

BREAKING INTO YOUR HOUSE OR YOUR COMPUTER
Cyber-thieves are eager to steal that file you labeled “Important Private Confidential Sensitive Personal Information.” Subtlety’s not your strong point, is it?

CONNING A CREDIT BUREAU
By posing as someone legit, like a bank or an employer, thieves can obtain all your vital stats in one handy package. Don’t let them order your report before you do!

EAVESDROPPING AND SHOULDER SURFING
Some thieves try to listen in on your conversations or watch you enter your PIN at an ATM, using high-tech Bond gear like binoculars and video cameras.

SKIMMING
By running your plastic through a bogus reader designed to copy the card number, your seemingly innocent Food Mart guy or friendly waitress just might be ripping you off.

PRETEXTING, PHISHING, SCAMMING, AND SPOOFING

Four fancy ways of saying, “playing you for a fool.” By mail, telephone, or e-mail, thieves pretend to be from businesses with actual reasons for needing your SSN and mother’s maiden name. As if you didn’t already hate telemarketers enough!

INSIDE JOB
Sadly, a significant amount of identity theft is perpetrated by family members or relatives, who have easy access to your records. Employees and co-workers can also get your personal information at work.

STEALING FROM COMPANIES
A large number of businesses have you in their database systems, along with all the information a thief could want. To get the goods on you, thieves hack into databases, steal physical files, or pay employees to divulge your data.

A thief can also fill out a “change of address form” for you so the evidence of his crime won’t wind up on your doorstep. Lazier thieves may simply buy your information from someone who has used one of the above methods. That’s bad news, since it means multiple impostors may be committing fraud in your name.

Identity Theft 101

Identity theft, that nasty crime in which someone obtains and uses your personal information to commit fraud or theft, is the fastest growing criminal activity in the U.S. And it could be coming soon to a bank account near you!

You’ve probably heard about the most common forms of identity theft—when a thief tracks down your credit card numbers, and then uses them to max out your accounts. That kind of theft—the stolen credit card variety—is fairly easy to notice and fix.

Things get more complicated, though, when a thief steals your SSN from records at your job and uses it to apply for a mortgage or car loan. Cases like this are hard to detect and often even harder to resolve.

The problem is that all the techno-marvels we take for granted often help to serve up our identities on a silver platter to clever, techno-savvy thieves. For example, it’s great to be able to shop online, but your electronic transaction may give a hacker access to your credit card number.

And while preapproved credit applications make it easier for you to get a card, they also make it a breeze for an imposter to get credit using your name. Your personal information is available in more places than you may even realize—and it presents thieves with the perfect opportunities to make some quick cash.