Identity theft can hugely affect your credit score. It generally causes low credit score and this in turn has negative impacts especially on one’s financial situation.
How does identity theft occur? Identity theft can occur in a number of ways. Here are some of the ways through which identity thieves gain access to people’s credit card information:
1. Theft of mails
Identity thieves can steal bank statements, credit card statements, and credit card offers which have been mailed to you. This kind of theft is likely to occur in cases where people leave their mailbox open. The identity thieves can also fill out a change of address form and send it to your bank thus leading to the bank emailing them your credit card information.
Skimming is a process by which identity thieves steal credit card information using ATM machines. The identity thieves attach data storage devices to the ATM machines so as to enable them gather information about the credit cards. The storage devices retrieve information from a credit card each time one inserts his or her card into the teller machine.
3. Computer hacking
Identity thieves can hack into a computer and obtain information which pertains to your credit card.
4. Collusion with unethical bank employees
The thieves can also pay some bank employees so as to divulge to them information about a customer’s credit card.
5. Fraudulent emails
Identity thieves can send you emails asking you to confirm to them some details about your credit card. In most cases, people unsuspectingly send them their information since they have domain names which are similar to that of a bank or a credit card company website. The emails thus appear genuine.
6. Physical theft
This is the case whereby the identity thieves directly steal credit cards from people. They can for example snatch your purse or wallet away from you.