Most often, identity theft occurs whenever the user's personal information is compromised. In fact identity theft usually involves using the victim's personal information to commit frauds.

There are some guidelines that can help us prevent identity thefts; these guidelines are useful to minimize the potential damage that can occur from identity theft:

1) Blocking disclosed credit card numbers is a part of identity theft monitoring process.
2) Monitoring credit reports is necessary to monitor identity theft.
3) Contacting government agencies is another way to prevent identity theft; this will also prevent the assailant to use licenses or credit cards.

There are many symptoms of identity theft such as:

a) Getting late or missing bills
b) Sometimes receiving an unknown credit card bill is another symptom of identity theft.
c) Other symptoms of identity theft include being contacted by unknown debt collectors or receiving bills for purchases that you have not made.

There are some steps that are necessary to minimize and prevent identity theft, these preventive measurement are known as identity theft monitoring mechanisms.

Identity Theft Monitoring Mechanisms

Identity theft monitoring includes a mechanism that will ensure that identity theft will never occur in future. There are many measures that help to prevent identity theft such as securing Social Security number (SSN), credit card numbers or other personal information. These preventive measures will help to tackle fraud or other identity theft crimes.
Identity theft monitoring includes the thorough verification of your personal accounts, which also cover all your credit card accounts. If identity theft occurs then it is necessary to close the credit account immediately. Consulting with financial institutions and banks is one of the best way to prevent identity theft. Changing passwords of credit cards and ATM cards frequently is another way to prevent identity theft. Avoiding parents names, date of birth and last digit of social security number in passwords to aid the process of identity theft monitoring.

Identity thefy can be even be done by using anybody's social security number which is generally a four-digit number. If this happens, then it is necessary to inform one of the three nation wide consumer reporting companies. Placing initial fraud alert is part of Identity theft monitoring process, this will restrict the fraudster from opening a credit account by using a duplicate name. This alert will stays on credit card report for 90 days.

Monitoring suspicious activities are also part of Identity theft monitoring process. This process includes checking accounts that have never been accessed previously, debits on such accounts that cannot be explained and inquiries from unknown companies. Sometimes checking name, surname, and social security number and employers name is also important to monitor identity theft.

Putting a flag on file can be a part of Identity theft monitoring mechanism, which will prevent anyone else from getting duplicate license or other authorized documents. Carefully reading and monitoring credit card reports and financial statements is also part of Identity theft monitoring system. This is useful to prevent and tackle identity theft. Many financial companies and insurance companies are offering identity theft insurance, which cover every aspect of identity theft.

Large Threat Database

Antivirus software is only as good as its threat database. Many people have this misconception about virus protection. They can only detect and remove a virus that has been added to the database and updated through the software. Frequent updates are an extremely important feature of the best antivirus software. The program should be able to detect and remove the latest threats like:

XP Antivirus
Antivirus 2009
Virtumonde
AntiSpywareMaster
Vundo
Winfixer

A lot of antivirus programs can not detect these viruses. They hide out in hard to reach areas like the registry, DLL, and startup commands. A lot of people ask me the same thing. They say, "Why do I have all of these viruses when I scanned my computer with Ad-Aware and Spybot and they say my computer is clean?!?" Well those two programs cannot remove the viruses listed above. But I have used a program below that can.

Real Time Protection

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• Always secure your key business and personal records including social security card number, credit cards, and bank or financial document in a safe place by locking them in a safe or durable file cabinet.

• If not necessary, never carry such vital information as social security card and signed check leaf when you go outside.

• Further, never carry more than one credit card in your wallet. It is also not advisable to store the ATM card pin number in the wallet.

• Never allow your paid bills to remain in the mailbox, as a thief who searches your mail box can retrieve some of your most important information including name, address, number, bank details, credit card information, and above all your signature, which he may exploit for illicit activities.

• Be careful when you put any kind of business records in the trash, as sometimes these waste papers may prove as a bonanza for identity thieves.

• Likewise, be careful when you converse on the phone. If you receive a phone call requesting for your account details or other personal details, make sure that you are disclosing your important information to only the person concerned. However, it is not advisable to disclose your critical information over the phone.

• Don't forget to delete or cut off the details of previous or terminated employees' details from your company or business database.

• Check your credit reports and bank statements in regular intervals, as it helps to easily trace out suspicious transactions.

In case, if your wallet, suit case or bag containing valid information is lost, immediately inform it to your collection agencies, creditors, or credit card companies in order to block your details. It is also important to file a report with your local police, and maintain a copy of it to furnish it as a proof to creditors who may accuse of crime.

Identity theft of a person or business is mainly done to access bank accounts or funds owned by the victim or to open new accounts in their mane. This business identification might also be used for committing crimes which are traced back to your business.

Reasons and consequences of business identity theft

One of the main reasons for business identity theft is to make way to your customers. After the scammers has availed the name and address of your customers they might imitate your business in postal mails, emails or other ways to gain confidence in your customers and might even exploit the trust you have built.

This would not just hurt your customers but they might also not know that the person hurting them is not your business. You should know that the thief would often try to collect fundraising fees and do it with a good name to successfully close the deal. Your business might basically feel funds are for a good cause but they can have a bad feedback.

This means that the victim of business theft would sustain fraud on corporate levels. This can result in ruined business credit ratings, damaged reputations, fraudulent purchases, illegitimate business deals done in company's name and even fraudulent loans taken under company's name.

The stakes

You might know that it is quite easy for the thieves to steal personal information but the thieves also have several ways to obtain your business information. Similar to personal identity theft, the thieves can do the most damages when the find the social security number of a business firm. This will provide them easy access to the online business checking account through which they can even set new accounts.

Therefore the first result would be your credit rating as they might use millions of funds for any purpose. The thieves can even use your business to gain access to your records and might probably steal your employees' and clients' identities and might even sell your confidential business info.

Protecting business identity

Business identity theft is become a serious issue every day but there are still some steps you can take to prevent or considerably reduce the risk of being a victim.

Shredding - Investing in a good shredder can help a lot. You should be certain that all the records including credit cards or bank documents are completely destroyed by the shredder.

Protecting electronic information - Make sure you purchase strong security software which can encrypt your information, maintain firewalls and protect email accounts.

Eliminate or protect paper information - Make sure all the important files are kept away from public and are accessible only to your employees but with a purpose. As paper is more susceptible than electronic ones, you can store then in computers and also switch to online banking and business processes.

Most often, identity theft occurs whenever the user's personal information is compromised. In fact identity theft usually involves using the victim's personal information to commit frauds.

There are some guidelines that can help us prevent identity thefts; these guidelines are useful to minimize the potential damage that can occur from identity theft:

1) Blocking disclosed credit card numbers is a part of identity theft monitoring process.
2) Monitoring credit reports is necessary to monitor identity theft.
3) Contacting government agencies is another way to prevent identity theft; this will also prevent the assailant to use licenses or credit cards.

There are many symptoms of identity theft such as:

a) Getting late or missing bills
b) Sometimes receiving an unknown credit card bill is another symptom of identity theft.
c) Other symptoms of identity theft include being contacted by unknown debt collectors or receiving bills for purchases that you have not made.

There are some steps that are necessary to minimize and prevent identity theft, these preventive measurement are known as identity theft monitoring mechanisms.

Identity Theft Monitoring Mechanisms

Identity theft monitoring includes a mechanism that will ensure that identity theft will never occur in future. There are many measures that help to prevent identity theft such as securing Social Security number (SSN), credit card numbers or other personal information. These preventive measures will help to tackle fraud or other identity theft crimes.
Identity theft monitoring includes the thorough verification of your personal accounts, which also cover all your credit card accounts. If identity theft occurs then it is necessary to close the credit account immediately. Consulting with financial institutions and banks is one of the best way to prevent identity theft. Changing passwords of credit cards and ATM cards frequently is another way to prevent identity theft. Avoiding parents names, date of birth and last digit of social security number in passwords to aid the process of identity theft monitoring.

Identity thefy can be even be done by using anybody's social security number which is generally a four-digit number. If this happens, then it is necessary to inform one of the three nation wide consumer reporting companies. Placing initial fraud alert is part of Identity theft monitoring process, this will restrict the fraudster from opening a credit account by using a duplicate name. This alert will stays on credit card report for 90 days.

Monitoring suspicious activities are also part of Identity theft monitoring process. This process includes checking accounts that have never been accessed previously, debits on such accounts that cannot be explained and inquiries from unknown companies. Sometimes checking name, surname, and social security number and employers name is also important to monitor identity theft.

Putting a flag on file can be a part of Identity theft monitoring mechanism, which will prevent anyone else from getting duplicate license or other authorized documents. Carefully reading and monitoring credit card reports and financial statements is also part of Identity theft monitoring system. This is useful to prevent and tackle identity theft. Many financial companies and insurance companies are offering identity theft insurance, which cover every aspect of identity theft.

Credit Card Identity Theft

This type of identity theft has now become one of the serious issues faced by many people in the US. Usually credit card identity theft could happen in three ways such as

• Stealing your original credit card and using it in an unauthorized way, thereby leaving credit in your own name
• Using the details in your credit card in order to make a new credit card and utilizing it for buying items on the web
• Credit card identity theft also includes stealing just your PIN (Personal Identification Number) rather than stealing the card, and using it to withdraw huge amount. This is done by obtaining your PIN number when you type it at the ATM counter in order to withdraw cash from your credit card

Driver's License Identity Theft

It is a serious fraudulent activity in which someone uses your driver's license card to commit traffic-related crimes in your name. In this case, the identity thief uses your driver's license to buy a new car in your name and the real problem sprout up when a motor vehicle offence occurs, during which the crime would be charged in your name. In this case, you may not only get arrested but also lose your auto insurance.

Social Security Identity Theft

This is perhaps the most serious of all types of identity thefts. In this case, a dishonest person or identity thief may use your social security card number to gain other personal information, which may involve taking advantage of your good credit to put more credit in your name. Some even misuse your social security number for employment purposes, and as an outcome you will be left with a huge income tax bill.

Medical Identity Theft

As a result of this type of identity theft, you may have to face many consequences, the prominent being the thief uses your medical identity including insurance details to get medical treatment in your name.

Different types of identity theft also include criminal identity theft and online identity theft. In short, whatever be the source or nature of identity theft, it is a serious issue that affect lives of many innocent people by completely shattering their life.

Credit card fraud involves withdrawal of funds and obtaining of goods and services by using an unauthorized account. Otherwise inaccessible personal information stored on computers is stolen in order to use a card. Due to the virtual explosion of credit card business throughout the world, security has become critical in the entire process. There were about 60 million credit card holders in the sixties and according to an estimate, the number has gone up to more than a trillion now.

In India, credit card companies make a provision in their contract with the client that they, the company, would not be liable for the fraudulent transaction unless the client loses his/her card and reports the loss immediately. Sometimes the banks and credit card companies try to save their skin by inserting a clause in the relevant contract. This is purported to absolve the company in case a fraud occurs on the stolen card and the client fails to notify the loss in time. This unilateral provision however has not stood the test of legal scrutiny. The courts have placed the burden of loss on the issuers.

In India, the Mail Order Telephone Order (MOTO) type account for the bulk of credit card frauds. This occurs when the card is not actually presented, but the details are given on the application form to buy goods or services or when the transaction is done on the telephone.

Fraud through fake cards is not as rampant in India as in the USA. Techniques have been developed whereby the number and other information on the magnetic strip is erased and a new number is embossed. When the card does not work on the swiping machine, the merchant manually processes the details of the card to complete the sale. This procedure is called skimming of the cards.

In the USA, identity theft is also quite prevalent and is supposed to be one of the fastest growing offences in America. The fraudsters adopt another person's identity to gain access to their monetary sources. In the case of online transactions, 'site cloning' is resorted to where the site clone created is made to look like the original site in order to obtain the credit card details of unsuspecting customers. Similarly, false merchant sites are also created where cheap goods lure customers into giving their card details.

Scared by the ever increasing cases of credit card fraud, the affected companies and banks have taken various steps to minimize it. Manual reviews of the transactions on the card are undertaken, but this requires a high level of human intervention and increases costs. In the USA, Address Verification System (AVS) has been developed for use in the 'card not present' scenario. The system is designed to check whether the address given by the buyer matches with the one on record.

Visa has devised a Payer Authentication System based on PIN similar to the system used on ATM cards. This is a channel between the bank and the customer used to authorize online transactions. With the increase in cross border ecommerce the issuers in India will have to update their arsenal to combat the forgers on the same lines as their Western counterparts. The Information Technology Act and Rules, passed in 2000, provide penalties for the tampering of computer source documents and hacking of computer systems. No specific mention has, however, been made of Credit cards or financial transactions. The RBI has formed the Credit Information Bureau of India (CIBIL) in collaboration with Dun and Bradstreet who will maintain the records of all individuals who want to avail of finance from banks and credit card companies in India.

The Indian Penal Code contains provisions to check economic crimes such as Bank Fraud, Insurance fraud, Credit card fraud, stock market manipulation, etc. The local police deal with the IPC crimes falling under the broad categories of 'Cheating' (Section 415-424), 'Counterfeiting' (Coins & Stamps Section 230-263A and Currency Section 489A-489E) and 'Criminal Breach of Trust' (Section 405-409).

Online Credit Card Offence & Indian Law:

So far as Indian legal position is concerned, any offence pertaining to online payment through credit cads will come within the purview of Information Technology Act, 2000 read with relevant provisions of Indian Penal Code, 1860. Section 378 of the Code defines the term athefta as follows:

aWhoever intends to take dishonestly, any property, out of the possession of any person without the consent of that person moves the property in order to such taking, is said to commit theft.a

In order to commit theft following elements are required to be satisfied:

(a) The intention must be dishonest.

(b) Such property must be movable in nature.

(c) Such property must be taken out of the possession of its owner.

(d) Such property must be taken without the consent of the owner.

(e) Such property must be removed from its original place to another.

Now we have to examine whether online credit card theft satisfies the abovementioned requirements in order to book the offender to justice. This definition, if interpreted in strict sense, does not include the online theft of credit card information. But, if a merchant dishonestly obtains the blank purchase slip and forges the signature of the cardholder's signatures on it and thereafter obtains the payment from bank, he can be booked under the offence of forgery.

Hacking has become an important tool in the hand of cyber criminals to take away the confidential information relating to credit cards and use it illegally for their personal advantage i.e. purchasing goods or online transaction of money etc.

To deal with this menace, our Parliament has been enacted the Information Technology in the year 2000. Following penal provisions of this statute are relevant to mention here.

Section 66- This section provides the following penalties for hacking with computer systems:

(1) Whoever with the intent to cause or knowing that he is likely to cause wrongful loss or damage to the public or any person destroys or deletes or alters any information residing in a computer resource or diminishes its value or utility or affects it injuriously by any means, commits hack.

(2) Whoever commits hacking shall be punished with imprisonment up to three years, or with fine which may extend up to two lakh rupees, or with both.

The offence under this Section is cognizable and non-bailable.

Section 43- Clauses (a), (b) and (g) of Section 43 state that if a person has unauthorized access or secures access to computer, computer system, computer network or downloads copies or extracts any data from such computer, computer system, computer network or even assists another person to facilitate access in the aforesaid manner respectively, he shall be liable to pay damages by way of compensation not exceeding one crore rupees to the person so affected.

It is quite apparent from the above that besides legal protection it is necessary to carefully examine the technological and contractual protection existing within the system because law is not an alternative to other security measures required to be taken by the cardholder while making online payment.

Conclusion

In India, credit card fraud is mostly limited to the physical space. Online con jobs make up just about 1% of the total numbers here, unlike 40% in the developed world.

But, as consumers graduate to the shop-easy internet and pay with their cards, instances of fraud are bound to rise. While we don't have statistics, as access to the web increases, reported cases of card fraud are estimated to rise at 20-30 % every year. In online transactions, contracts are one-sided and the customer is always held responsible in case of fraud.

Phishing, where a consumer gets a fictitious email from a fake site or blog seeking sensitive card information, is a commonly-used defrauding mechanism. To top it, people are careless in offering their card details.

Almost all the banks issuing credit cards issue various guidelines and suggestions to the customers from time to time in order to cut short the rate of credit card frauds and misuse to a minimum possible level.

Thus, we can conclude that with the help of the legal remedies available as cited earlier in the Article, penal action can be brought against the offenders who are held liable for credit card frauds and misuse.

Things like your credit cards, mobile phones, computers, USB drives and many more have your private data. If this data goes into wrong hands, then it can prove dangerous to you. In spite of knowing all these factors, there are many people who still don't take good care of their private data stores. With inclusion of all these, there is one more aspect of identity theft; fraud in your credit report.

This is more dangerous than any of your other things that are stolen. In short, stealing all such private assets and using them as the original person is using it, is called as identity theft. It is just like criminal has turned himself into you while using your assets.

Types of identity theft

There can be various criterias on which types of identity thefts can be determined. Here are some of the major types:

• Identity theft involving some character theft: This is one of the first types of identity thefts that occurred. In this type, criminal impersonates as if he was you and performs some crime which result in warrants and arrests that are made to you because for the world, it is you that have performed crime. This can be easily performed when there are twins. Because the fact that twins has same faces, one can easily impersonate the other and can make wrong use of it.
• Identity theft including Social Security Number (SSN): Every individual is associated with a social security number which is his identity wherever he goes in the country. This SSN if stolen can cause loss of life sustaining benefits to the victim. Also, criminal may steal this number and earn salary on behalf of you and then you are forced to pay taxes on your earnings which actually you have not earned!
• Medical assistance on your name: One can obtain a medical insurance on your behalf and then use the benefits provided by that policy on your behalf. Some one can steal your current medical policy and gain benefits on it. And by the time you need those benefits, you are denied from getting it as you have reached their limits.
• Driving licence identity theft: Some one can perform driving crime on your name and show fake licence of your name. When case goes in court, warrant is issued on your name.
• Credit Thefts: This is the most commonly noted identity thefts in today's world. Some one can obtain your information and fill any form on basis of it. He can also obtain loans and some other policies on your behalf and then you will have to repay interest

Some other types

There are also many other types of identity thefts such as: computer identity theft, credit cards theft, internet identity theft, criminal identity theft, passport identity theft and more.

This private data, if wrongly used, can cause loss to that person. These private things can include your mobile phones, credit cards, ATM cards, computer data, hard drives, pen describes and even your face! Surprised? But it is true; cases have been noticed of stealing faces of someone. Criminals undergo plastic surgeries and steal some one's face. His is perfect stealing of one's identity. All such cases come under identity theft. Identity theft is usually done for gaining economic profits.

This is some what modern technique of stealing some ones money. When we think of criminals we have thought of someone with shot guns and stealing whatever we have. But as changing times have brought in newer technologies, there have been rise in what are called as sophisticated thieves. They are all around you and keep watching you without you noticing them. Then at right time, they steal your very private data and now that they have obtained your identity, they are free to get profits on your accounts but for them.

How credit card theft causes identity theft?

You should be very careful while dealing with our credit cars at public places. Public places are full of criminals every where. Main thing to remember is that you never notice them. They are watching you all the time and try to steal some moment to know something very personal to you.

Some times it happens that when you are entering your credit card number while paying off your bills, you should take extra care of hiding your secrete pin number from other people. May be someone is watching your pin number entered and then it just the matter for him to steal your card. Stealing card from your pocket is very easy for such criminals.

So now they have your card as well as your secrete number. And they start profiting on your account. You don't come to know about such frauds until you get credit card bill at the end of the month. There have been cases noted about criminals coming to your home and pretending to be the card provider company executives. They say that your card is not working properly and that you have to replace it. They take away your card for replacement purpose and then it's easy for them to make money out of it.

Steps to betaken after identity theft credit card fraud

First step to take is that contact the provider company and let them know about the incident taken place. You just have to answer some questions for verification purpose which are very personal and which are known only to you such as your mother or grandmother's name. Then they block any further transaction from that card. This prevents more losses to happen to you. Important is to launch a compliant with the police department and then help them in carrying further investigations.

Medical identity theft is not as easy to detect or reverse as are the more common forms of identity fraud. This type of identity theft has left victims with tainted health records, medical histories, and diagnoses. Victims may receive bills for medications, tests and even surgeries that they never received. In order to ensure your own adequate identity theft protection, always be on the look out for medical service bills, records and notations that are not and were never applicable to your own history. If at any time you receive a bill for a service you never received, or you're asked questions regarding an unknown medical condition, you've probably been victimized. Some victims of medical identity theft have even received faulty blood transfusions due to their records indicating the wrong blood type. So not only can this crime ruin your credit, it can also be potentially life-threatening.

Thieves often fail to pay their shares of insurance deductibles and co-pays, leaving their victims to receive credit reports detailing unrecognizable medical debts. Having a working knowledge of identity theft prevention techniques will help you protect yourself from this damaging crime. It is estimated that 1 in 6 Americans don't have insurance, making it very tempting for some people to engage in medical identity theft, especially when emergency situations arise. If, heaven forbid, someone uses your personal data in an emergency care facility, they are very likely to get away with it as these facilities cannot refuse care and are less likely to catch the error in the first place.

To date, there are no government statistics as to the number of medical identity fraud cases occurring annually in the United States, but insurance providers and hospitals agree that this type of theft is presenting itself more and more. Approximately 250,000 Americans have been victims of medical identity theft thus far, according to the World Privacy Forum. If you think your medical records and insurance data are safe, never underestimate a thief's ability to get their hands on your information. Because insurance companies share patient information, just because you clear up a tarnished medical history does not mean you're always protected should you decide to switch to another provider.

Should a medical identity thief ever use your good name to seek treatment, you could be refused insurance coverage later--depending on the treatment they sought. It's no secret that insurance agencies can and will refuse coverage to people with histories of certain drug use or pre-existing conditions. Here are a few medical identity theft protection tips for you and your loved ones to keep in mind:
a Any notices from your insurance carrier should be opened immediately. If you're ever informed of or billed for treatment you didn't receive, dispute it right away. Always shred these documents before throwing them in the trash.
a Be diligent about checking your credit report--this is important for any type of identity theft prevention. Strange medical bills need to be disputed with credit reporting agencies, as well as your insurance company.
a If you receive mail from a doctor's office or hospital where you haven't been a patient, don't just assume it's junk. Open these immediately, as they could be data theft notices or bills for services to which you weren't privy. Let credit agencies know so they can put fraud alerts on your file. Also let your insurance company know right away.
a Suspect that you're a victim of Medicare/Medicaid fraud? Call 1-800-HHS-TIPS (1-800-447-8477), contact the Department of Health and Human Services at 1-800-368-1019 or go to their website at http://www.hhs.gov/ocr/.
a Think you might have been the victim of medical identity theft? File a complaint with the Federal Trade Commission ( http://www.ftc.gov/idtheft ) by visiting their website or calling their Identity Theft Hotline toll-free at 1-877-IDTHEFT (438-4338).