Once a thief has your information what can they do with it? There are many ways that your identity could be used and only some of them will cause you immediate financial loss. It is important for you to watch and be aware of things that could cause you problems both short term and long term.

The first way your identity could be stolen and used is Credit Card Fraud. A thief may open new credit card accounts in your name. When they use the cards and don’t pay the bills, the delinquent accounts will appear on your credit report. It is important to monitor your credit report at least once a year so that you can dispute any accounts that are not yours. Also monitor the addresses that appear on your credit report. One of them might be the thief’s address. The identity thief might change the billing address of your credit card so that you no longer receive bills. Then they can run up charges on your account so you won’t see any problems for a while. That is why it is important to monitor and keep track of your accounts.

Phone or Utilities Fraud is another way to be a victim of identity theft. The thief might open a new phone or wireless account in your name and then run up charges on your existing account. The thief might also use your name to get utility services such as electricity, heating or Cable Television.

Bank or Finance Fraud is a common type of identity theft. Once a thief has your information, they can create counterfeit checks using your name or account number. The thief can also open a new bank account in your name and write many bad checks. They might also clone your ATM or Debit card and withdraw money from your accounts, leaving you penniless. Finally, the thief might use your information to take out a loan. Then they don’t pay that back and leave you with the problems.

Another type of fraud that can be done with your information is getting government documents. They might get a driver’s license or ID card in your name with their picture. With that information, they also might be able to get a copy of your social security number and get government benefits. They may also use that information to file a false tax return using your information.

There are other things that your information could be used for such as getting a job using your social security number. The thief might sell your information to someone who does not have the proper documentation. Someone might use your information to rent a house or get medical services using your name. The information could be used to provide information to the police during an arrest. If they don’t show up for their court date, a warrant for arrest is issued in your name.

These are all things that your stolen identity could be used for, so it is important to monitor your information and keep track of information that you are giving out. Please remember to check your accounts often and be concerned about any irregularities.

Identity Theft is becoming a bigger and bigger problem every day. Your identity goes through many different processes each day and those processes can be contributing to identity theft each and every day. When your identity is mishandled or misused it can easily fall into the hands of someone who can take advantage of your good name. What should you be watching for and what can you do to protect your identity? It is important for you to know how identities get stolen and what you can do to protect yourself.

The first method of identity theft is known as “Dumpster Diving”. A thief will go through your trash to find bits and pieces of information that they can use. Sometimes the smallest piece of information can be added to your other information to get the complete identity. It is important that you do not throw anything away into your trash that has your personal information. Bank Account statements, credit card statement, medical information and billing can provide a huge amount of information. This type of information should be stored for its designated amount of time, and then it should be destroyed.  A Cross-cut shredder is a great investment and if you purchase the right one, you can also destroy old credit cards and compact discs that have your personal information.

Another method is known as “Skimming”. An Identity thief can take your credit card and swipe that through a special storage device. That device takes all of the information from your card and stores it. Then the thief can transfer that information to another card with a magnetic stripe so that your information is now on the “new” card. A recent television station showed how easy it was to steal the information and they transferred the information to a hotel key card. Then they went to local stores and purchased items using the hotel key card as the stolen credit card information. Not one store caught them processing the key card and they were able to walk out with lots of merchandise. It is important to keep your eye on your card as it is being processed. Now this is not always possible, especially at restaurants, but you certainly can monitor your accounts to make sure that they are being used as you want. Monitoring your credit card accounts, especially online, can give you immediate access to your information and you will be able to see when something is not being used properly.

The third way for identity theft is “Phishing”. It is pronounced Fishing and it is when the thief pretends to be a financial institution or company and they send spam or pop-up messages hoping to get your personal information. This is done mostly by computer or telephone. Never give your personal information out to someone who is unknown. You can call the company back and give them information rather than giving out your information to someone on the phone. If you purchase items online make sure that you are working on the proper website and under a secure connection. Never give your personal information to a pop-up window.

Another way to become a victim of identity theft is the old fashioned way of “Stealing”. The thief will steal your wallet or your purse, take your mail including bank and credit card statements. They also will steal pre-approved credit offers and check or tax information. They will steal your personnel records or bribe other associates that have access to your personal information. It is important for you to monitor your information and keep track of when things come to your mail. Watch your mail for your statements and other information that could easily be used in identity theft. If you come up missing information, don’t be afraid of calling your bank or credit card company and let them know that you did not get your statement. Then with online access you can monitor your accounts to see if anyone uses your information without your permission.

The last way your identity could be stolen is one that could be the most difficult to find out. If the thief uses a false pretense to gather your personal information from financial institutions, telephone companies and other sources, they could use that information to get better information on you. That new information can give them information that would allow them to get your bank and credit card numbers, information on your credit report and information regarding your savings or investment portfolios.

There are many ways that information can be stolen and you can’t protect yourself from them all. But with your diligence it can help you avoid situations that could cause problems and financial loss. Observation is important because you can see that the thief is observing you and will take advantage of any miscues you make regarding your identity. You can file complaints with your local police department and with the FTC. Simple observation by you will keep most thieves at bay and your identity safe.

If you are considering using a credit counselor to help you get things back on track and work to get your debts paid, then you should be asking the right questions. Once you have asked the right questions, you will have answers that you can use to help you determine which credit counseling service is right for you.

Remember if you are thinking about using a credit counseling service it is important that you find the right one. One firm may be charging you hundreds of dollars for things that another agency might be doing for a lot less money. It pays to ask questions and listen to the answers before you sign up.

An educated consumer will understand what they are getting into and be prepared for outcome. Credit Counseling Agencies can hurt your credit as much as help you if they don’t do it properly.

Questions to ask:
1.  What do your services cost? Be looking for answers that show complete fees. Some companies give you a price but then charge you fees for other work that is done. They don’t always tell you about those fees.

2. How do you determine what is the amount of my payment? You want to make sure that they explain to you how they figure out what you have to pay and what they will be paying to your creditors.

3. What happens if you sign up and the payment that they figure out for you is more than you can afford? Many people have signed up only to find out that they can’t get their payments under what they can afford.

4. How does the debt payment plan work? There are many questions that go along with this one question. (How do I know that my creditors have been paid? How do I know that the creditors have received their payments? Is my money put into a different account than your operating funds so that my money is used to pay my creditors and not your bills?)

5. How often do I get updates on my accounts? Can I access that information by phone or online?

6. Can you get my creditors to reduce the interest or eliminate it altogether and can you get them to waive their late fees and finance charges?

7. Is this the only option that I have or do you have anything else that I might be able to do regarding my debt?

8. What happens if I am unable to continue with this agreement? What if I become injured or disabled and can’t continue to make my payments?
9. Are there any debts that won’t be able to be included into this agreement? Watch out for agencies that tell you that several of your debts won’t qualify for the program. The program may not be right for you if they can’t help you completely.

10. Who will be helping me plan out the payment of the debts and working with me as we pay things off completely.

11. Who is going to be helping me if there are problems with the creditors or my accounts?

12. What protection do you have regarding all of the personal and private information you will have? I have concerns about Identity Theft.

These are questions that will help you determine if the agency can help you. If the questions make the people at the agency nervous then be aware that an ethical agency will not be afraid to answer those questions because you are looking at all things that could happen. Protect yourself and your information at all costs. Don’t give out any personal information that is not required. Unethical agencies have used the personal information to steal identities and also take your money as they “work” on your file. But in the long run the agency did not make any payments and just put you into a worse situation. Don’t hesitate to walk away before signing up if you are not comfortable.