IDENTITY THEFT
Between January 2003 and December 2003 the F.T.C received more than half a million Consumer Fraud and Identity Theft complaints.
Consumers reported fraud at more than $400 Million.
www.consumer.gov/sentinel/pubs/top10fraud2003.pdf
Don't let it happen to you……….take our Identity Theft Quiz in section 9 to see if you are putting yourself at risk.
In this issue, we are going to look at the various aspects of identity theft and what you can do about it, along with important web site links for you review at your leisure.
The Facts on Identity Theft
1. What is Identity theft?
Identity theft occurs when someone uses your name, address, Social Security Number (SSN), bank and credit card accounts, drivers license or any other identifying information without your knowledge to commit fraud and/or other crimes.
This is usually for financial gain, however there is an increase in "Cloning" - Where information about a person, is often sold on the black market, either to illegal immigrants or to people who are trying to "re start" their lives and avoid arrest. Imposters may also search death certificates and find a person who would match the imposter's age, a copy of the birth certificate can be purchased (depending on state law) and the imposter assumes the deceased identity.
Identity theft is a Federal Crime under Federal Law: 18 U.S.C 1028 "The Identity Theft and Assumption Deterrence Act of 1998".
www.consumer.gov/idtheft/federallaws.html
2. How do they obtain my information?
In many varied and different ways:
- "Dumpster Diving" - Going through your trash searching for personal information that you have thrown away, always destroy any thing that contains ANY personal information about yourself.
- Stealing your information from your place of work
- "Skimming" - Stealing Credit Card Account Numbers by using special information storage devices
- Stealing the details from your credit card while processing a transaction
- Stealing your mail
- Diverting your mail to a different address/location
- Obtaining a copy of your credit report by fraudulent means
- Stealing from your home
- "Pretexting" - obtaining information directly from you by posing as an "official" and asking you personal questions.
- Using the new photo phones to take a picture of credit card at a checkout
3. How do I know if I have been a victim?
You have to constantly be vigilant and monitor all your personal information:
- Monitor your balances on your bank and credit card accounts
- Investigate if you stop receiving bills
- If you receive credit cards that you have not applied for
- If you begin to receive collection calls from creditors
- If you are denied credit for no apparent reason
- Review your Credit Reports, from all 3 agencies, on a regular basis, this will help you identify any unexpected changes
Equifax - www.equifax.com
call: 800-685-1111 or write:
P.O. Box 740241, Atlanta, GA 30374-0241
Experian - www.experian.com
call: 888-EXPERIAN (397-3742) or write:
P.O. Box 2002, Allen TX 75013
Trans Union - www.transunion.com
call: 800-888-4213 or write:
P.O. Box 1000, Chester, PA 19022
4. It's happened to me, what do I do now?
You must report identity theft:
The Police
You MUST report identity theft to the police and obtain a copy of your police report.
As a victim of identity theft you have the protection under the law if you make a police report, if there is no police report you do not have the protection of law - simple as that.
If you do not make a report, it could be viewed later that you knew about the fraudulent activity and did nothing to stop it.
Your financial institutions
Notify all your financial institutions by a phone call and following up with a registered letter, keeping a copy for your records.
They will also want a copy of the police report.
Credit Bureaus
Notify all the credit bureaus, by a phone call and follow up with a registered letter, keeping a copy for your records.
They will also want a copy of the police report. Also, obtain a copy of your credit report, this will help you identify any fraudulent activity. The credit bureaus will put a "fraud alert" in your file:
Equifax - www.equifax.com
call: 800-685-1111 or write:
P.O. Box 740241, Atlanta, GA 30374-0241
Experian - www.experian.com
call: 888-EXPERIAN (397-3742) or write:
P.O. Box 2002, Allen TX 75013
Trans Union - www.transunion.com
call: 800-888-4213 or write:
P.O. Box 1000, Chester, PA 19022
Fraud alerts
Let creditors know that fraud has been associated with your credit report. As a result, creditors may confirm that they're dealing with you and not an imposter before granting credit or other services.
Victim statements
Tells creditors to contact you before granting credit or other services.
Victim statements may cause delays in getting credit while the creditor tries to contact you. If you have a cell phone, you may want to include that number in your statement.
The following charts describe the current fraud alert and victim statement placement procedures of the credit bureaus.
Please Click here to view chart!
Please note: TransUnion and Equifax use a combined fraud alert and victim statement. Be sure to confirm these procedures when you contact the credit bureaus as they may change.
Notifying other important organizations
In addition to the police, financial institutions and credit bureaus, it is also a good idea to notify the following organizations:
- Your phone company's, both home phone and cell providers
- Internet provider(s)
- Your utilities provider(s)
- Inform the US mail, this will help prevent any fraudulent re direction of your mail
- Social Security Department
- Drivers License
- I.R.S
- F.T.C
Identity Theft Affidavit
The FTC, in conjunction with banks, credit grantors and consumer advocates, developed the ID Theft Affidavit, a copy of which can be found at www.consumer.gov/idtheft/federallaws.html to help you close unauthorized accounts and get rid of debts wrongfully attributed to your name.
If you don't have a police report or any paperwork from creditors, send the completed ID Theft Affidavit to the three major credit bureaus. They will use it to start the dispute investigation process.
You also can send the ID Theft Affidavit to creditors. Not all companies accept the ID Theft Affidavit. They may require you to use their forms instead. Check first.
5. How can I prevent identity theft from happening to me?
As with any crime, you can't guarantee that you will never be a victim, but you can minimize your risk. By managing your personal information wisely, cautiously and with an awareness of the issue, you can help guard against identity theft.
Don't give out personal information on the phone, through the mail or over the Internet unless you've initiated the contact or are sure you know whom you're dealing with. Identity thieves may pose as representatives of banks, Internet service providers (ISPs) and even government agencies to get you to reveal your SSN, mother's maiden name, account numbers, and other identifying information. Before you share any personal information, confirm that you are dealing with a legitimate organization. You can check the organization's Website as many companies post scam alerts when their name is used improperly, or you can call customer service using the number listed on your account statement or in the telephone book.
Don't carry your SSN card; leave it in a secure place.
Secure personal information in your home, especially if you have roommates, employ outside help or are having service work done in your home.
Guard your mail and trash from theft:
- Deposit outgoing mail in post office collection boxes or at your local post office, rather than in an unsecured mailbox. Promptly remove mail from your mailbox. If you're planning to be away from home and can't pick up your mail, call the U.S. Postal Service at 1-800-275-8777 to request a vacation hold. The Postal Service will hold your mail at your local post office until you can pick it up or are home to receive it.
- To thwart an identity thief who may pick through your trash or recycling bins to capture your personal information, tear or shred your charge receipts, copies of credit applications, insurance forms, physician statements, checks and bank statements, expired charge cards that you're discarding, and credit offers you get in the mail. If you do not use the pre-screened credit card offers you receive in the mail, you can opt out by calling 1-888-5-OPTOUT (1-888-567- 8688). Please note that you will be asked for your Social Security number in order for the credit bureaus to identify your file so that they can remove you from their lists and you still may receive some credit offers because some companies use different lists from the credit bureaus' lists.
- Carry only the identification information and the number of credit and debit cards that you'll actually need.
- Place passwords on your credit card, bank and phone accounts. Avoid using easily available information like your mother's maiden name, your birth date, the last four digits of your SSN or your phone number, or a series of consecutive numbers. When opening new accounts, you may find that many businesses still have a line on their applications for your mother's maiden name. Use a password instead.
- Ask about information security procedures in your workplace or at businesses, doctor's offices or other institutions that collect personally identifying information from you. Find out who has access to your personal information and verify that it is handled securely. Ask about the disposal procedures for those records as well. Find out if your information will be shared with anyone else. If so, ask if you can keep your information confidential.
- Give your SSN only when absolutely necessary. Ask to use other types of identifiers when possible. If your state uses your SSN as your driver's license number, ask to substitute another number. Do the same if your health insurance company uses your SSN as your account number.
- Pay attention to your billing cycles. Follow up with creditors if your bills don't arrive on time. A missing bill could mean an identity thief has taken over your account and changed your billing address to cover his tracks.
- Be wary of promotional scams. Identity thieves may use phony offers to get you to give them your personal information.
- Keep your purse or wallet in a safe place at work as well as any copies you may keep of administrative forms that contain your sensitive personal information.
- Cancel all unused credit accounts.
- When ordering new checks, pick them up at the bank, rather than having them sent to your home mailbox.
6. What should I do if I know the person who stole my identity?
This subject is very personal but when the imposter is a relative or someone you know, this magnifies the problem dramatically.
- How do I prosecute my own sister?
- What sort of mother am I if I have my own child arrested?
- What will family and friends think of me if I do that?
Also, if the imposter is an ex-spouse, then the crime borders on harassment and abuse.
Difficult decisions, how could they have done this to me? You feel betrayed, embarrassed, violated and abused, but what can you do about it?
You have 3 choices:
Paying the debt yourself
Can you afford to do this?
Will the imposter commit the crime again?
Ask the creditors in question, to see if you can resolve the situation without police involvement
The creditors want their money back and due to people claiming identity theft with no police then they will view the case on that merit.
Unfortunately without an official police report creditors will not believe it is a justified case of identity theft.
Report the identity theft to the police
As a victim of identity theft you have the protection under the law if you make a police report, if there is no police report you do not have the protection of law - simple as that.
If you do not make a report, it could be viewed later that you knew about the fraudulent activity and did nothing to stop it.
7. What is child's identity theft?
This is a fairly new crime and little documented evidence is available; the following is a brief overview of information this is currently available.
This crime occurs when another person for personal gain has used a child's identity. The imposter may or may not be known to the child or the child's family.
Receiving a pre approved credit card application through the mail in the child's name is not necessarily identity theft, but you should run a credit report check to make sure.
Child identity theft is broken into the 3 categories:
- Financial
When the imposter uses the child's identity for financial gain, mainly in obtaining credit cards. The age on the application is taken at face value and rarely, if ever, checked.
- Criminal
This usually entails the child's identity being used to obtain a drivers license.
- Cloning
Information about the child is often sold on the black market, either to illegal immigrants or to people who are trying to "re start" their lives and avoid arrest.
Imposters may also search death certificates and find a person who would match the imposter's age, a copy of the birth certificate can be purchased (depending on state law) and the imposter assumes the deceased identity.
8. Where to get further help and information
Newsletter 01
Rev.1
January, 2005
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November News 2006
Identity Theft & Consumer Fraud
This information is provided solely
for educational and informational
purposes and does not constitute
legal advice.
Newsletter 01
Rev.1
November, 2006
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