Identity theft, an increasingly common form of credit fraud, occurs when someone assumes your name and other personal information to take over your credit accounts, open new ones, get a job, take out a loan, rent an apartment, or otherwise benefit at your expense. Because it often involves no physical theft, identity theft may not be noticed by its victims until significant damage has been done.

Strategies thieves use
Identity theft takes several forms. Using your account number, expiration date, Social Security number, and billing address, an identity thief may contact your credit card company and change the address on your account. The thief may then make large purchases on the phone or over the Internet. Because you won't receive statements, it might take weeks or months for you to suspect trouble.

A thief may also use your information to apply for a new credit card. Unless you check your credit report, you may not be aware of such a new account until it becomes delinquent. In some cases, identity thieves have even filed for bankruptcy in the victim's name to avoid paying the debts run up on such an account.

Other types of identity theft don't involve credit cards. Someone with a bad credit rating may use your personal information to get a car loan, acquire telephone or other utility service, or open a bank account in your name.

Learn to protect yourself
Any type of identity theft can severely damage your credit rating. For tips on keeping your information away from identity thieves, see if you've been a victim of credit fraud (link to "If You've Been a Victim of Credit Fraud" page). If you think you might be a victim, see if you've been a victim of identity theft (link to "If You've Been a Victim of Identity Theft" page).

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