Three claims have to be developed to show that the advent of modern technology has brought more ways of identity theft along with the associated benefits. If we look into the virtual world of internet, one can easily realize that it has brought some very important change in overall experience of communication. The services which at one stage we were availing at market places are now made being offered to us through internet (Arar, Brandt & Bouman, 2006). We use virtual identification techniques for making ourselves visible in this virtual world. This process has now made both buyers and sellers being represented in some ways or another. But at the same time we users are at becoming more and more vulnerable to instances of identity theft (Universal Postal Organization [UPO], 2001).Phishing is basically email based security attack relying on social engineering. An individual is being lured in such a way that he reveals all confidential information while depending on some established brand name and entities associated with those names. In other way this Phishing is a way in which an individual is being are conned or deceived so that he could reveal his private and confidential information (Das, 2007). A very simple way of a Phishing attack is that of an email in which the individual receives an e-mail addresses in which a reputed company is asking to update details including social security number, credit card number and its corresponding CVV number (UPO, 2001). The victims are generally directed to a fake website which looks similar to that of a reputed firm. Once one has become a victim of this attack then there is serious chance of some consequences in form of both time and money.These days we are now haring some new terms like Adware, Malware, and Spyware being associated to ID Theft. We can define each of them separately. This Adware can be understood something as software applications with the program displaying some advertisement while the same is running through trigger mechanism. Now moving on to the Malware, this software has been designed to destroy or harm other software or the networks through some deadly virus capable enough cripple a network system. Similarly this Spyware is a program that surreptitiously monitors the user actions thereby gathering data related to customer. Though all the above mentioned programs are undesirable but the Spyware can spy into our actions and steal our Username and Password thereby sending the same to some other destination and making it a case of identity theft (Das, 2007).Wireless technology has brought lots of convenience by including mobility factor in the way we use various tools of communication. But the problem of Identity theft has also been on rise. The communication process that involves wireless technology makes us more vulnerable with chances of data packet duplication. The signals in a wireless network can easily be intercepted and later be analyzed by the hacker to extract confidential and private information like Username and Password (Das, 2007).ChallengesAll of are aware of the strength of internet and its wide scope in form of usage and services being made available. Along with plethora of benefits this internet has made us more vulnerable if possibility of identity theft is taken into consideration. Though we are aware of a number of techniques which are used for extracting information but the very expanse of internet and the unlimited possibilities associated with it makes our information on the issue of identity theft a very small quantity. With every passing day, there is a growing possibility of more ways and techniques which can have its usage as a tool for identity theft.The approaches and various awareness programs have made us more confident of tackling this menace but new ways are coming into existence and possibility of a common individual getting into that trap is equally high.