Many things can be owned. These things may have been purchased, given as gifts or passed along from one generation of a family to another.

In addition, those possessions can have monetary or sentimental value. Some of those items that have sentimental value can include photographs or heirlooms that have been passed down within the family.

Of course, the problem with owning something is that it could be stolen. Or it could even be lost due to something like fire, flood, or some other natural cause. And naturally, there are plenty of thieves out there who would steal your possessions if given the chance.

One of the most critical things that can be stolen from you is something you can’t actually hold in your hand. It’s your identity. Identity theft has become a very serious problem and in order to prevent it, you need to understand it.

Just What Is Identity Theft, Anyway?

In order to be aware of identity theft, provide protection and prosecute those who steal another’s identity, it is important to define identity theft. Identity theft is that action or actions taken by another for the purpose of misrepresenting themselves as that individual in order to commit fraudulent acts. Those fraudulent acts can include the illegal accessing of that person’s financial accounts or committing acts of crime. Those acts of crime could include creating new credit cards accounts, obtaining a loan, etc.

Also, to properly define identity theft, it is critical to define the negative impact experienced by the individual whose identity has been stolen. One of the negative repercussions of identity theft is financial loss. Often an identity theft crime will affect a person’s bottom line as thieves access credit cards, bank accounts, etc.

Plus, if it isn’t stopped quickly, this damage can have a serious impact on your good name. Credit reports, employment history, criminal records, etc. are all potential problems. Even though you are innocent, the problems are on your record. It can take years to clear your name.

How Identity Theft Occurs

Identity theft usually happens when someone obtains critical pieces of information about you.

This can include identification numbers, such as your social insurance number and driver’s license number – things that only their owner should know. Other potentially dangerous pieces of information are your passwords, account PINs, date of birth or even your mother’s maiden name.

These numbers can be obtained fraudulently by thieves who pose as representatives of service or financial companies in order to obtain these highly sensitive numbers. It is important for the reader to understand that under no circumstances should they give out these sensitive numbers to individuals who ask for them.

Often a company is very clear that they will never ask for these sensitive numbers unless the customer has initiated the call. In addition, often a company will only ask for the last four numbers of a person’s 9 digit social security number.

Your trash is another source of this information for identity thieves. Don’t ever throw out papers with personal information on it – make sure you shred it thoroughly first.