IDENTITY THEFT
The topic for this month's newsletter has been changed to identity theft. The reason that I chose to do this is because of the holidays and the rise in this crime. It is estimated that about 40% of all cases will occur between November 15 and December 31. In this issue, we are going rediscover the various aspects of identity theft and what you can do about it.
The Facts on Identity Theft
1. How Identity Theft works
Identity theft can enter your life in many different ways. It is any time someone else uses your personal information and pretends to be you. These thieves may make purchases or even commit crimes. A common form is when the thief gathers your credit card information and uses it to make purchases.
You may have gone out to lunch and paid with a credit card but decided to crumble up your copy, and throw it on the table instead of shredding it. Someone who commits these crimes picks up that paper with all your information and even your signature on it and makes online purchases. Within hours or even minutes you are a victim of identity theft! This happens to be one of the simplest and most preventable forms. Other forms include people who actually get caught committing crimes and use your identity. Suddenly you have a warrant out for your arrest and you do not know anything about it.
Did you know that almost 20% of all reported cases involved someone they knew and almost 10% were family? It is pretty scary when you hear the statistics about identity theft. You can never be too careful and luckily there are ways to protect yourself. Read through the rest of the newsletter to find out helpful tips and facts about identity theft.
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. Ways to fight back against identity theft
In many varied and different ways:
- Protect your personal information. Almost half of all identities that are stolen are by someone that is close to the victim. So be sure not to leave personal things lying around in places where others may be tempted to gather your information. Anything that has personal information on it should be shredded prior to discarding it in the trash.
- Check your credit reports. I cannot emphasize enough how important it is to stay on top of what is being reported on your credit report. This is an excellent and foolproof way to find out if your identity has been stolen. Anytime someone uses your credit the bureaus will be notified and it will be reported. You will know immediately if you are falling victim to identity theft by checking your report. All 3 credit bureaus are required to supply you with one free credit report annually so take advantage and check it.
- Look into credit freezing. Some states now offer a service where they will block or freeze your credit score and credit history. No one will have access to it. This will cause a bit of a challenge when you need it available. It takes three days to lift the block. If you have already been a victim of identity theft or feel that you would be interested in doing this find out more at FinancialPrivacyNow.org.
- Check your personal accounts often. Be sure to always check your bank accounts and credit card statements. Often times it may only be a small charge that are being added on so look over everything carefully.
- Be cautious when using computers. I was surprised to find most identities that were stolen were not due to computer use or online information. With that said it is still important to protect yourself online. As always there are always computer hackers that can collect personal information from you. Be sure to change your passwords often and keep your computer updated with antivirus and antispyware programs.
- Protect your social security number. That is a very important number that identifies you. Once someone has your social security number they can gain access to all your personal information.
- Only carry with you what you absolutely need. Too many people carry all their financial information with them. It is not necessary or recommended to carry your social security card or more than one credit card with you. It is safer to keep the financial or personal information that you do not need at home in a safe place.
- Have all important documents photocopied or recorded and kept in a safe place. You should know your drivers license number, social security number, and credit card numbers all written down in case they are stolen. It will be a lot easier and quicker to report stolen with all the information.
3. If you are a victim here are the steps to take!
1. Contact one of the credit bureaus who will then contact the other two agencies to advise them. They will then place a "fraud alert" on each of your credit reports which can take up to 24 hours. This should alert all creditors to contact you before any credit is taken out in your name. However, sometimes this is not observed so be sure to pay attention to everything that occurs on your credit report or statements.
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
2. You will then receive a free credit report from all 3 agencies. There will be a number that will be assigned to you for your case. Be sure to keep this number in a safe place because you will need it for any communications with the agencies. It is recommended that you write a statement explaining what occurred and it should be put in your file at each agency.
3. Contact the creditors that accounts have been involved in identity theft. Explain the situation and request any false documents and information they may have from the person who used your credit. Some creditors may give you a hard time about releasing this information but it is imperative that you receive it.
4. Report your crime to the FTC at 877- 438- 4388. All information is recorded and although they generally deal with the bigger fraud cases it is still important to report all cases.
5. Contact the police in the area. This is a crime and police will write a report for you. Give the police department as much information as possible. Send copies of this report to all your creditors and the 3 credit bureaus as proof of the crime.
6. Change all passwords. Avoid using things that people would expect you to use. Never use the last four digits of your social security number or your mother's maiden name. If the accounts do not have passwords add one for security.
7. Change any other documents that have been falsely used. Contact the correct offices and advise them.
8. The website for the FTC is http://www.ftc.gov/credit/idtheft.htm. This website will give lot of information and helpful facts if you are ever in this situation.
4. How Identity Thieves Use your Personal Information
Opening new credit under your name. Some thieves actually use your personal information to open new accounts. They rack up the bills and never pay them so in the end it puts a bad mark on your credit history. Sometimes the thief will call your creditors and change the mailing address so that the bills are sent to someone else and you do not even realize these charges are being made.
Taking out auto loans or other types of loans in your name.
Establishing services such as electricity, cable or phone in your name.
Opening up accounts and writing bad checks or overdrawing money.
Using your name to police and then not showing up for court and a warrant is put out under your name.
5. Repairing your credit if you have been a victim of ID Theft
Anyone who has had their identity stolen will tell you it is a long and often frustrating process to repair it. The Federal Government has set some guidelines and laws that the creditors must obtain to which will help you in your process. Once you have proven that you were a victim of identity theft the bill collectors are no longer allowed to send you bills for money that was charged by the other party.
You want to start by reviewing your credit report and noting what is incorrect. Call them and dispute anything that is not accurate. Then notify them in writing your explanation and any evidence you have to support it to all three credit bureaus. Be sure to send it certified mail so that you know that they received it. It is very imperative that you keep the originals for your own records. Once your dispute is received they must review it within 30 days. If they find that your dispute is accurate they must update your credit report. After the investigation is complete they must notify you in writing. If information was changed on your credit report you will receive a free credit report with the updated changes.
Once you have disputed information advise the creditor about the information that you find inaccurate. You will also want to include any evidence that supports your dispute. Again, be sure to only include copies and keep the originals for your files. At the point that the dispute is received it should go into your file. If the creditor reports it to anyone the dispute letter must also be reported at the same time. If the information is proven to be accurate it must be removed.
6. Frequently Asked Questions
What should I do first if I have been a victim of identity theft?
Contact the fraud department of one of the credit bureaus. They will then notify the other bureaus that will note your account to prevent further action by the identity thief. Even though this is done you still must watch all your accounts very closely. Notify all your creditors in writing as to what happened. Finally you will want to file a report with your local police station. This report should be sent to all parties involved including your creditors and credit bureaus.
Who must I give my social security number to?
This answer varies but the fact of the matter is no one can demand it except government agencies. Government agencies include, but are not limited to, motor vehicle department, welfare agency, and tax agencies. Brokers and tax agencies are also required to get your social security number. Hospitals, doctors and businesses are not required to have your social security number. If you are in doubt or do not feel comfortable do not give it out. Check out the company before revealing your number.
Is there any way to protect myself from becoming a victim of identity theft?
There are ways to minimize your chances of becoming a victim of this crime but nothing is guaranteed. Always check your credit report and credit card statements. Shred all credit card offers or anything else that may contain personal information. Be careful whom you reveal personal information to. Do not leave things around the house or in your car that can attract an identity thieve. If you use a computer to pay bills be sure you are on a secured site and change your passwords often.
How does identity theft happen?
Unfortunately, it does not take much for someone to steal your identity. It can be as simple as someone snatching your purse or wallet. People also go garbage picking and steal your personal information out of the trash. Often times it is someone who has access to your home or office. There are also skimming machines where they run your credit card and it saves all the information. People also gather personal information by standing very close to you behind an ATM. Thieves can also hack into computer sites or send emails requesting passwords or other personal information. Do not release any information to any of these emails even they are posing as a legitimate company. Contact the company and inquire about the email then give the information over the phone.
I have heard of companies that watch your credit. Should I invest in this?
It is up to you in regards to joining one of these programs. You can do the same thing on your own for no fee. However, if you have been a victim already and feel this is a good way to stay on top of your credit it may be worth the fee.
7. Where to get further help and information
Newsletter 01
Rev.1
November, 2006
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This information is provided solely
for educational and informational
purposes and does not constitute
legal advice.
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