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Parasites
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Fleas, ticks, lice and mange are common parasites that affect a dog's skin, resulting in itching and often hair loss. Visible parasites, such as fleas and ticks, burrow into the skin. If a dog digs at them it can result in further irritation, hair loss and possible infection. Mange is caused by a mite that infests the hair follicles. Itching, flaking around the head, neck and back and thinning patches of hair are common symptoms of mange. Left untreated, mange can result in massive hair loss and oozing, crusted skin lesions.
Allergies
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Dermatitis from an allergic reaction can also cause itching, scratching and localized hair loss. Dogs can be allergic to food, medications or pests, like fleas. The solution is to limit a dog's exposure to the allergens.
Genetic
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Seborrhea is a condition that presents as greasy, yellowish skin flakes that cause itching, scratching and localized hair loss. Much like human seborrhea, it can be treated with medicated shampoo. It is often a genetic condition. Other genetic causes of skin irritation, itching and hair loss are hormonal disorders and psychological stress. Anxious dogs sometimes suffer from what is called acral lick dermatitis. The dog licks its skin excessively out of anxiety.
Infection or Illness
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Improper adrenal function in dogs causes Cushing's disease and alopecia or hair loss. Some suppressed illnesses that have been treated with medication also can stress the dog's system and present as skin irritation with hair loss. Other underlying illness or even the treatments for such illnesses can cause skin flare-ups, itching, scratching and hair loss.
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Reasons for Hair Loss in Dogs With Itching & Scratching
Dogs can be affected by skin conditions, much like humans, and are often exposed to the same environmental factors. Foods, pests and medical conditions can all result in skin irritation, itching and hair loss. It is important to determine the cause of your dog's condition because itching and hair loss can be signs of a serious problem.