| the fraudulent appropriation and use of someone's identifying or personal data or documents, as a credit card. |
| Main Entry: | identity theft |
| Part of Speech: | n |
| Definition: | the stealing of a person's financial information, esp. credit cards and Social Security number, with the intention of using that data to commit fraud and create a phony persona |
Identity Theft
The crime of obtaining the personal or financial information of another person for the purpose of assuming that person's name to make transactions or purchases.
Investopedia Commentary
Identity theft is committed many different ways. Some identity thieves sift through trash bins looking for bank account and credit card statements; other more high-tech methods involve accessing corporate databases to steal lists of customer information.
Once they have the information they are looking for, identity thieves can ruin a person's credit rating and the standing of other personal information. Many types of identity theft can be prevented. One way is to continually check the accuracy of personal documents and promptly deal with any discrepancies.
Related Links
Identity Theft: How To Avoid It
The Importance of Your Credit Rating
See also: Credit Card, Credit Report, Deceased Alert, Phishing, Skimming