All the experts indicate the problem is increasing. Law enforcement officials indict about 400,000 Americans are affected annually. Unlike other types of fraud, identity theft can be extremely difficult to detect until the damage is done. In addition, it can be accomplished over a period of months or even years, before the unwary victim even realizes there's a problem. In general, the bank robbery is more risky.
Identity thieves can work in several ways, but the basis is the same.
They gather personal information in order to steal from that individual. These scammers particularly like Social Security numbers, which they can use as a means of procuring other genuine identification documents. They may open a new credit card account, using your name, date of birth and Social Security number. When they use the card, and don't pay the bills, the delinquent account is reported on your credit report. Once the credit is maxed out, the imposter disappears and moves onto another victim.