What is identity theft or identity fraud?

Identity theft occurs when someone uses your name, address, Social Security number (SSN), bank or credit card account number, or other identifying information without your knowledge to commit fraud or theft. 

Identity thieves may use a variety of methods to gain access to your personally identifying information including:

• rummaging through your trash, the trash of businesses, or dumps in a practice known as "dumpster diving"
  
• stealing wallets and purses containing identification and credit and bank cards. They may even put it back so you don't even know it happened
  
• stealing mail, including bank and credit card statements, pre-approved credit offers, new checks, or tax information. They apply for pre-approved credit cards in your name and intercept the cards from your mailbox
  
• completing a "change of address form" to divert mail to another location

Many people have reported that unauthorized persons have taken funds out of their bank or financial accounts, or, in the worst cases, taken over their identities altogether, running up vast debts and committing crimes while using the victims's names.

You could already be a victim of identity theft
The FTC says that the average victim of identity theft is unaware of the problem for 12 months. By the time it is detected, it is already too late. Take precautions to protect yourself from identity theft. The Federal Trade Commision says "One of the best ways to catch identity theft is to regularly check your credit record."

When anyone applies for credit in your name, it will show up in your credit report. Credit bureaus have offer credit monitoring services with provide you with unlimited access to your credit report and instant alerts as soon as your credit report changes. This means, you'll know the instant someone opens credit in your name. It is recommended that you check your credit from each of the three major credit bureaus since each may carry different information on you. At the very least, it is strongly recommended that you check your credit report at least once a year.