Six Common Methods that Thieves Use to Steal Your Identity

Each year more than 9 million people fall victim to some form of identity theft. Chances are pretty good that is has already happened to you or someone you know. ID theft can happen to anyone, even if they believe that they are taking all the normal precautions to protect themselves. Knowing the common methods that these criminals use to illegally obtain your information can help prevent you from becoming a victim. So just how do these cowardly criminals steal your identity? Here are the six most common ways that your identity can be stolen.

This method involves the use of a specially made machine that "skims" the magnetic surface on your credit and debit cards. The skimmer stores your credit card number (and sometimes your PIN) which is later used to make illegal purchases. Some low tech skimming devices employ a camera to record your PIN as well. Thieves are coming up with very creative ways to steal your information using this method. Skimming devices can be attached to gas pumps, ATMs, and even the card readers at your local grocery store. If you are not paying attention, you could unknowingly insert your card into a modified device. In addition to this, thieves have even been caught publicly placed fake ATMs!

Tips to avoid being skimmed:

• Pay attention to where you stick your credit and debit cards
• Don't use ATMs or card reads that appear to have been tampered with
• Don't trust any ATM or card reader (even if it is in a highly populated area)
• Get into the habit of covering your hand when you enter your PIN

Phishing occurs when scam artists attempt to obtain your personal information by pretending that they are from your bank or credit card company. Sometimes they can even pretend to be one of your utility providers as well. Phishing can occur with fake phone calls, unsolicited spam emails, or even fake billing documents mailed to your house. Some of the most creative criminals have created fake websites (called spoofs) that encourage unsuspecting victims to enter their personal information.

Tips to avoid being phished:

• Never trust a caller who claims to need your personal information
• Don't click on links in unsolicited or spam email
• Ensure that the website you are using is actually the real website
• Pay attention to the documents you get in the mail

Simply by filing a change of address form with the USPS, a thief can redirect your mail to another location. Here, the criminal can read your mail and gather plenty of information that they can use to cause you harm. This low-tech form of ID theft is actually fairly common. If a thief files the proper forms when you go a long vacation, you could end up coming home to a huge mess.

Tips to avoid address changing thieves:

• Pay attention to your mail and know when sensitive documents are supposed to arrive
• Consider paying your bills online instead of writing checks
• Don't tell strangers of your vacation plans (don't post your plans online either)

Hacking occurs when criminals successfully guess or decipher your passwords, security questions, and/or PINs. Many hackers use social networking sites like mySpace and FaceBook to obtain information about you that can be used to answer security questions. Simple or obvious passwords can also be cracked by using many of the information already publicly available on these sites as well.

Tips to avoid being hacked:

• Use strong passwords
• Change your passwords often
• Use privacy controls on all social networking sites
• Don't unnecessarily give out personal information over any medium

Would you believe that some identity thieves love to dig through your trash? "One man's trash is another man's treasure," is the old saying right? Well in this case, your personal information is gold to these thieves. By going through your trash they can find credit card applications, tax documents, and even checking and savings account information.

Tips to avoid dumpster diving thieves:

• Shred your personal documents before discarding them
• Don't leave trash cans out longer than necessary
• Consider paying your bills online instead of writing checks

Stealing used to be the main way that thieves obtained your personal information prior to the existence of the internet. Even so, it still happens frequently and can have devastating results. Criminals can steal your purse, wallet, and even your mail and use it steal your identity.

Tips to avoid having your personal information physically stolen:

• Consider getting a post office box or a locking mail box
• Don't leave personal information and documents lying around
• Know where your wallet or purse is at all times (and keep it close by you)
• Pay attention to your surroundings