How to Make Yourself Less Vulnerable to Identity Theft

12/4/2000

Executive Summary

As you head out to shop this holiday season, beware that a thief could be watching and waiting to be the Grinch who stole your identity. Identity theft has been called the fastest growing white-collar crime; the Privacy Rights Clearinghouse estimates that 700,000 consumers will become victims of identity theft this year.

According to a survey conducted by Privacy Rights Clearinghouse (PRC) and state PIRG staff in California this May 2000, victims of identity theft spend an average of $808 and 175 hours actively working to clean up their credit reports and other complications caused by the thief. Complications range from the denial of loans and credit to false arrests and criminal records.

Identity theft occurs when someone invades your life, taking pieces of your personal identifying information as his or her own, and ruins your financial reputation. Thieves can gain access to your Social Security number or any other personal identifier and can use that information to open up new accounts in your name or access your existing accounts. Thieves can be creative in obtaining this information – they can go through your mail, they can steal your wallet or purse, or they can buy your personal information from “inside sources,” such as a store employee who has access to a database with information. There are many other ways thieves can gain access to your personal information over which you have no control.

As long as the financial industry and credit reporting agencies continue to sell and share your personal information without your consent, you cannot fully prevent identity theft from occurring with your own actions. However, there are steps that you can take to make yourself less vulnerable.