You may have heard of identity theft and how important it is to safeguard against it, but you may be unsure about exactly what constitutes identity theft. Many people don't understand that you can still be a victim of identity theft even if you don't use online banking or a credit or debit card. While technology has made identity theft easier, it has been around for decades.
Identity theft is a form of fraud that occurs when an unauthorized person uses your private information for their own financial gain. This can include someone using your Social Security number to file a false income tax return, someone using your bank account information to get a loan in your name, or a friend or relative writing unauthorized checks with your checkbook.
Strangely, most businesses have very few safeguards to prevent people from using another person's information. Most companies presume that people are honest and are using the correct information when they pay for products and services. Because paying for things electronically with credit or debit cards is simple, identity thieves can continue their fraud for years.
Therefore, it is up to consumers to protect themselves against identity theft. While in recent years government agencies and lenders are beginning to take action to protect consumers, some of these protections can come too late for many victims of identity theft.
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