by 
The Curious Bag
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The root of financial identity theft is when someone steals another person's information such as name, address and Social Security number. These data are then used to impersonate the victim to execute several types of illegal financial transactions.
Types
The identity thief can use the information to gain access to the victim's bank accounts and take money, or open credit cards and loans to secure cash and goods.
Protecting Yourself
Checking your Equifax, Experian and TransUnion credit reports at least once a year--which you can do for free annually--is a good way to find out if anyone might be stealing your identity to gain credit accounts.
Expert Insight
The U.S. Postal Service notes that financial identity theft using the mail system is rare. However, the Federal Trade Commission advises people to shred bank statements and other personal information before throwing them in the trash.
Reporting
Always report any suspected financial identity theft to the police, credit bureaus, and your lenders and banking institutions.
Time Frame
If identity theft is not cleared, for seven years, negative accounts can submit reports to your credit file as if you opened the accounts personally and failed to pay them.
Source:
U.S. Postal Service: Postmaster General Sends Advice to Prevent ID Theft
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