How Identity Theft Happens

Understanding the methods criminals use to steal personal information.

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Common Methods

Identity thieves use various tactics to obtain personal information. Understanding these methods helps you protect yourself.

Data Breaches

Most Common Source

Companies store millions of customer records. Hackers breach databases stealing names, SSNs, credit cards, passwords.

Examples: Equifax (147M), Target (110M), Home Depot (56M), Marriott (500M)

Your data likely already exposed: Check HaveIBeenPwned.com

Protection: Credit freeze, unique passwords everywhere, enable 2FA

Phishing & Social Engineering

  • Email Phishing: Fake emails from "banks" or "IRS" requesting info or containing malicious links
  • Spear Phishing: Targeted emails using researched personal details. Very convincing.
  • Vishing: Phone calls pretending to be bank, IRS, tech support. Create urgency.
  • Smishing: Text messages with links or requesting replies with personal info
  • Impersonation: Pose as authority figure to pressure victim into providing information

Physical Theft

  • Mail Theft: Steal from mailbox. Bank statements, credit card offers, tax documents, checks
  • Wallet/Purse: Direct access to IDs, credit cards, insurance cards
  • Dumpster Diving: Search trash for documents with personal info. Shred everything!
  • Skimming: Devices on ATMs or gas pumps capture card data

Online Vulnerabilities

  • Weak Passwords: Easy to guess or reused across sites. Credential stuffing attacks
  • Public Wi-Fi: Unsecured networks allow eavesdropping on traffic
  • Social Media: Oversharing personal details. Birthday, pet names, maiden name - security question answers
  • Malware: Keyloggers capture login credentials. Banking trojans steal financial data

SIM Swapping

Scammer convinces phone carrier to transfer your number to their SIM card. They receive your calls and texts including 2FA codes.

Protection: Set up carrier PIN/password. Use authenticator app instead of SMS for 2FA

Insider Threats

  • Employees with database access stealing customer data
  • Family members or roommates accessing documents
  • Caregivers exploiting elderly or vulnerable individuals
  • Service providers (repair, medical) copying info

Dark Web Purchases

Stolen data sold on dark web marketplaces. Complete identity packages for $50-$200. Credit card numbers for $5-$100. Medical records, SSNs, login credentials all available.

Best Protections

Credit Freeze

Free at all three bureaus. Prevents new accounts. Most effective single protection.

Strong Passwords

Unique everywhere. Password manager. 20+ characters. Enable 2FA with authenticator app.

Monitor Everything

Check accounts weekly. Credit reports quarterly. Set up alerts for all accounts.

Limit Exposure

Share less online. Shred documents. Secure mail. Be skeptical of requests for info.