Identity theft can happen to anyone. I received a phone call from a collection agency two years ago asking me to pay a bill in Las Cruces, New Mexico. I have never been to Las Cruces, New Mexico, but someone pretending to be me apparently had visited this scenic New Mexico town. I don't recall what he purchased, but he nearly ruined my impeccable credit. This whole mess took almost a year to clean up.

Identity theft is a serious crime and it's on the rise. Technology has helped both the criminals and the crime stoppers. Statistics indicated that seven to nine million people every year fall victim to identity theft. How do they do this? How does one human being become another human being and get away with it? Their methods are varied.

Identity Theft Methods

Using an assortment of measures, identity thieves steal Social Security numbers (SSN), ATM cards, driver's license numbers, telephone calling cards, credit card numbers, and other bits of information that allow them to make the transformation. These thieves use this information to pass for their victims, usually blowing as much money as they possibly can in as little time possible.

There are two recognized types of identity theft. The first is called "account takeover" which happens when a crook obtains your current account information and buys products with the account number or the actual credit card. The second type is called "application fraud" and this occurs when a thief uses your information to open up a bogus account. Victims of this type of fraud often don't hear about it for quite some time. This practice can also affect businesses who may potentially hire someone who has committed identity theft. Employing an outside screening provider can cut down on this risk drastically.