Because there are so many ways to swipe someone's private information, such as a Social Security number, driver license number, credit card and bank account numbers, it's tough to find the thief or even determine how it happened. Identity thieves also steal mail, swiping everything from bills to preapproved credit card offers. Thieves comb the dumpsters of banks, mortgage companies, auto dealerships, restaurants and other businesses for credit slips and applications. Many businesses fail to shred these documents. Lawsuits are expensive.
Shredders are cheap.
They take the encoded information on the magnetic stripes and create new accounts. The thieves set up phony Web sites with enticing offers for consumers. It's one thing if you know Land's End. It's another thing if someone says, 'We'll give you a free vacation. While the vast information available online makes all our lives easier, it also helps thieves.