Identity theft is the crime of using someone’s personal information to commit fraud or theft. The FTC estimates that as many as 9 million Americans have their identities stolen each year, amounting to up to $50 billion a year in theft crimes.

Like many people, Tracy D. never imagined she could become one of the statistics and a victim of an elaborate identity theft scheme. That, she thought, was the stuff of television and movies. Then one afternoon, Tracy was surprised to find a collections notice in her mailbox.

She called the toll free number on the letter and discovered it was a delinquent credit card account for a department store she had never even visited. After hanging up, Tracy obtained an online credit report that revealed numerous other retail cards had been opened in her name during the past year with several different fake addresses and thousands of dollars in debt. She also discovered an auto loan and an endless stream of major credit card applications, most of which had been declined. Tracy put a fraud alert on her credit, took all the proper steps to close and flag every account, and spent another three months clearing up the mess of unauthorized charges and fraudulent accounts and inquiries that continued to appear. When her credit report was finally clear of errors, Tracy thought the crisis was over. Then, almost a year later, someone took out a $65,000 small business loan in her name.

Once your identity has been stolen, an active black market makes it easy for the original thieves to re-sell personal information to other even more sophisticated criminals. Unfortunately, while it may take months or even years to put a stop to the fraudulent activity, it can take only a matter of minutes for thieves to obtain your most vital piece of information—your social security number.

It was a particularly hectic morning when Craig M. realized the money clip that held his driver’s license and credit cards was missing. He had lost it somewhere between the parking lot and his office upstairs. These pieces of plastic are all someone needed to turn his life topsy-turvy.

Within an hour, two fraudulent charges had already shown up on his major credit card, and a cash advance had been attempted. At his request, the credit cards were promptly canceled. But five days later, he noticed a series of unauthorized transactions on his checking account—someone had entered different branches of his bank and used his driver’s license to obtain a second ATM card for his account, and to set up automatic payments from his account to another bank account. The thieves also acquired an ATM card in Craig’s wife’s name, added another phone to her cellular service, and began applying for credit cards in both of their names—all of this accomplished easily using their social security numbers, which were most likely obtained from the bank that first day.

They placed fraud alerts on their credit reports, but now two months later, Craig and his wife continue to receive letters every week confirming that someone has yet again tried to open an account—each instance requires at least 30 minutes to resolve. They have wasted countless hours of their lives on the phone and filling out paperwork, trying to put a stop to it all. At times it seems there is no end in sight to the harassment, and they will need to continue monitoring their credit and all accounts for many months.

Although Craig discovered the crime within mere hours and notified the proper authorities promptly, plenty of damage had already been done. The best protection is to remain vigilant. It is wise to follow up on every credit inquiry or notification received, and to request as much information as possible from each financial institution to try to determine where the account applications and requests originate.

 

How difficult is it for someone to hijack your identity?

All it takes is a small piece of personal information that most people carry around with them every day—a driver’s license, health insurance card, social security card, credit card or other document that helps a thief gain access to your accounts and additional information about you.

---

How does this happen?

If you think this can’t happen to you, consider the myriad ways in which identity thieves find their victims:

Two popular electronic methods are: hacking into the database of a financial institution or “phishing,” when a “scammer” sends an email that appears to be legitimate contact from your bank or other financial institution and requests personal information.

Another method called “skimming” involves the use of a high-tech “skimmer” device that reads personal information encoded on the magnetic stripes of credit cards, debit cards and even passports.

Of course, many thieves rely on low-tech methods like stealing your wallet or rummaging through your trash or mail to find bills or other documents, including pre-approved credit offers and credit card statements.

Some cases of identity theft originate in the workplace. Individuals may steal personnel records, bribe employees who have access to such information or steal a co-worker’s computer login.

Savvy criminals may engage in “pretexting,” the practice of getting your personal information under false pretenses. They may contact you directly, requesting certain information by telephone—pretending to conduct a survey, for instance. Once they get enough information they can pose as you when contacting financial institutions, utility companies and other sources to get more information or to modify or open accounts.

---

What should you do if your information has been stolen or compromised?

If you are concerned about the possibility of identity theft—or if your information has been compromised, but not yet misused (for example, if your wallet was stolen or you realize you responded to a phishing email)—you need to stay alert to the following signs that someone may be using your information fraudulently:

• Failing to receive bills or other mail (a missing bill could mean an identity thief has changed your address with the U.S. Postal Service, or taken over your account and changed the billing address)
• Receiving credit cards you didn’t apply for or letters indicating that credit card applications in your name have been declined
• Being denied credit or offered less favorable terms like a higher interest rate
• Unexpected calls or letters from debt collectors or businesses for things you did not buy or money you did not borrow

Consider reporting any theft or unusual incident to the major credit bureaus, the Federal Trade Commission, and local or state law enforcement. If a specific account worries you, contact your financial institution to alert them. Obtain your credit reports from all of the major credit reporting agencies and monitor them more frequently after any suspicious incidents.

You may also want to consider running an online social security number verification report [link to place on your site where this is offered], an instant, hassle-free way to see if anyone else has ever used your social security number. This report can provide useful information that is different from information that appears on your credit report; and it includes a search for judgments, liens and bankruptcies that might appear on your record if another individual is fraudulently using your social security number.

---

What steps should you take if you are already aware of fraudulent activity using your personal information?

• Put a fraud alert on your credit reports by contacting one of the three major consumer credit reporting companies (TransUnion, Equifax, Experian). This can limit the thief from opening any more accounts. Also, obtain copies of your credit report from each agency and review them in detail. Continue checking your credit reports frequently, especially during the first year after theft has occurred.

• Close any accounts that were misused or fraudulently opened. Ask to speak with the fraud department of each company and be sure to report the fraud in writing with proof of delivery. Keep copies of all correspondence and keep originals of all supporting documents that may serve as evidence of the identity theft.

• Change any PINs (personal identification numbers) on all existing and new accounts and regularly change passwords to websites that display your account information.

• Run a social security number verification report [link to place on your site where this is offered] online to learn whether someone else has used your social security number.

• Monitor your financial statements and credit reports very carefully and more frequently, at least every three months for the first year.

• File a report with the police in the municipality where identity theft took place. Request to file the report in person; if you are unable to do so, ask to file it online or by telephone. If the police will not take your report, you may report it to the state police or state Attorney General’s office.

• File a complaint with the FTC (Federal Trade Commission) using the FTC Identity Theft Hotline (1-877-ID-THEFT), submit an online complaint form (hypertext link to: https://www.ftccomplaintassistant.gov/) from their website, or write to their Identity Theft Clearinghouse. Taking this step will aid law enforcement in finding and stopping identity thieves.

• When reporting identity theft, always make contact by phone first. Although you will probably be required to follow up in writing, this can expedite the process.

• Some states allow a consumer to “freeze” their credit, which prevents creditors or other third parties from accessing your credit report without your permission. This does not negatively affect your credit. Check with your state to learn if this might apply to your specific situation.

• Save all documents that will help you prove that you have been a victim of identity theft. These documents include credit applications or transaction records, correspondence to or from financial institutions or debt collectors.

• In cases of identity theft, the law requires that businesses provide documentation, at no cost to you, of fraudulent applications or transactions. You may be required to request this information in writing and provide proof of identity, such as a copy of your driver’s license or ID card, and a copy of a police report, complaint or identity theft affidavit.

• In extreme cases of identity theft, it is possible to obtain a new social security number; however, this does not always resolve the problems and may cause other complications, so consider this option carefully before choosing it.

To read more detailed instructions for the steps above, and for a complete resource to assist you in matters of identity theft, visit the FTC website. [link to http://www.ftc.gov/bcp/edu/microsites/idtheft/]

How can you reduce your risk of identity theft?
Anyone can fall victim when they least expect it, but there are a few simple ways to lessen your risk of some types of identity theft:

• Scrutinize anyone who asks you for personal information. If someone claims to be calling from your bank but asks for information they should already have on file, consider this suspicious activity.

• Do not respond to emails requesting personal or financial information, or requesting that you log into your account.

• Do not use obvious information for PINs and passwords (such as mother’s maiden name, your date of birth, your phone number, social security number or consecutive numbers).

• When traveling, put your mail on hold or have a friend pick it up for you so it doesn’t pile up and attract attention.

• Shred documents before you throw them away.

• Monitor your financial statements every month.

• Check your credit regularly. An amendment to the federal Fair Credit Reporting Act requires each of the major nationwide consumer reporting companies to provide you with a free copy of your credit report, at your request, once every 12 months.

Federal Trade Commission
Identity Theft Hotline (1-877-ID-THEFT) or TDD at 202-326-2502
Consumer Response Center, FTC, 600
Pennsylvania Avenue, N.W., Washington, DC 20580.

Credit Reporting Agencies

TransUnion
1-800-680-7289
www.transunion.com
Fraud Victim Assistance Division,
P.O. Box 6790,
Fullerton, CA 92834-6790

Equifax
1-800-525-6285
www.equifax.com
P.O. Box 740241,
Atlanta, GA 30374-0241

Experian
1-888-EXPERIAN (397-3742)
www.experian.com
P.O. Box 9532, Allen, TX 75013

Social Security Administration
(if you suspect your social security number is being fraudulently used)
1-800-269-0271

Internal Revenue Service
(if you suspect the improper use of identification information in connection with tax violations)
1-800-829-0433

 

Title 18 United States Code - Section 1028 Fraud and Related Activity in Connection with Identification Documents and Information.

The Identity Theft and Assumption Deterrence Act of 1998 which became effective October 30, 1998, makes identity theft a Federal crime with penalties up to 15 years imprisonment and a maximum fine of $250,000. It establishes that the person whose identity was stolen is a true victim. Previously, only the credit grantors who suffered monetary losses were considered victims. This legislation enables the Secret Service, the Federal Bureau of Investigation, and other law enforcement agencies to combat this crime. It allows for the identity theft victim to seek restitution if there is a conviction. It also establishes the Federal Trade Commission as a central agency to act as a clearinghouse for complaints, (against credit reporting agencies and credit grantors) referrals, and resources for assistance for victims of identity theft. This statute may serve as a model for your state to enact similar legislation. It should also provide you leverage to influence law enforcement to investigate your case.

Title 18 USC 1028:

(a) Whoever, in a circumstance described in subsection (c) of this section --

1: knowingly and without lawful authority produces an identification document or a false identification document;

2: knowingly transfers an identification document or a false identification document knowing that such document was stolen or produced without lawful authority;

3: knowingly possesses with intent to use unlawfully or transfer unlawfully five or more identification documents (other than those issued lawfully for the use of the possessor) or false identification documents;

4: knowingly possesses an identification document (other than one issued lawfully for the use of the possessor) or a false identification document, with the intent such document be used to defraud the United States;

5: knowingly produces, transfers, or possesses a document-making implement with the intent such document-making implement will be used in the production of a false identification document or another document-making implement which will be so used;

6: knowingly possess an identification document that is or appears to be an identification document of the United States which is stolen or produced without lawful authority knowing that such document was stolen or produced without such authority shall be punished as provided in subsection

(b) of this section; or

7: knowingly transfers or uses, without lawful authority, a means of identification of another person with the intent to commit, or to aid or abet, any unlawful activity that constitutes a violation of Federal law or that constitutes a felony under any applicable State or local law;

(b) The punishment for an offense under subsection (a) of this section is --

1. except as provided in paragraph (3) and (4), a fine under this title or imprisonment for not more than 15 years, or both, if the offense is --

(A) the production or transfer of an identification document or false identification document that is or appears to be -- (i) an identification document issued by or under the authority of the United States; or

(ii) a birth certificate, or a driver's license or personal identification card;

B) the production or transfer of more than five identification documents or false identification documents;

(C) an offense under paragraph (5) of such subsection; or

(D) an offense under paragraph (7) of such subsection that involves the transfer or use of 1 or more means of identification if, as a result of the offense, any individual committing the offense obtains anything of value aggregating $1,000 or more during any 1-year period;

2. except as provided in paragraphs (3) and (4), a fine under this title or imprisonment for not more than three years, or both, if the offense is --

(A) any other production, transfer, or use of means of identification, an identification document, or a false identification document; or (B) an offense under paragraph (3) or (7) of such subsection;

3. a fine under this title or imprisonment for not more than 20 years, or both, if the offense is committed --

(A) to facilitate a drug trafficking crime (as defined in section 929(a)(2)) or this title;

(B) in connection with a crime of violence (as defined in section 924(c)(3)); or

(C) after a prior conviction under this section becomes final;

4. a fine under this title or imprisonment for not more than 25 years, or both, if the offense is committed to facilitate an act of international terrorism (as defined in section 2331(1) of this title);

5. in the case of any offense under subsection (a), forfeiture to the United States of any personal property used or intended to be used to commit the offense; and

6. a fine under this title or imprisonment for not more than one year, or both, in any other case.

(c) The circumstance referred to in subsection (a) of this section is that --

1. the identification document or false identification document is or appears to be issued by or under the authority of the United States or the document-making implement is designed or suited for making such an identification document or false identification document;

2.the offense is an offense under subsection (a)(4) of this section; or

3.either --

A: the production, transfer, possession, or use prohibited by this section is in or affects interstate or foreign commerce;

B: or the means of identification, identification documents, false identification document, or document-making implement is transported in the mail in the course of the production, transfer, possession, or use prohibited by this section.

(d) In this section --

1. the term "document-making implement" means any implement, impression, electronic device, or computer hardware or software, that is specifically configured or primarily used for making an identification document, a false identification document, or another document-making implement;

2. the term "identification document" means a document made or issued by or under the authority of the United States Government, a State, political subdivision of a State, a foreign government, political subdivision of a foreign government, an international governmental or an international quasi-governmental organization which, when completed with information concerning a particular individual, is a type intended to commonly accepted for the purpose of identification of individuals;

3:the term "means of identification" means any name or number that may be used, alone or in conjunction with any other information, to identify a specific individual, including any --

A: name, social security number, date of birth, official State or government issued driver’s license or identification number, alien registration number, government passport number, employer or taxpayer identification number;

B: unique biometric data, such as fingerprint, voice print, retina or iris image, or other unique physical representation;

C: unique electronic identification number, address, or routing code;

D: or telecommunications identifying information or access device (as defined in section 1029(e));

4. the term "personal identification card" means an identification document issued by a State local government solely for the purpose of identification;

5. the term "produce" includes alter, authenticate, or assemble; and

6. the term "State" includes any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any other commonwealth, possession or territory of the United States.

(e) This section does not prohibit any lawfully authorized investigative, protective, or intelligence activity of a law enforcement agency of the United States, a State, or a political subdivision of a State, or of an intelligence agency of the United States, or any activity authorized under chapter 224 of this title.

(f) Attempt and Conspiracy – Any person who attempts or conspires to commit any offense of this section shall be subject to the same penalties as those prescribed for the offense, the commission of which was the object of the attempt or conspiracy.

(g) Forfeiture Procedures – The forfeiture of property under this section, including any seizure and disposition of the property and any related judicial or administrative proceeding, shall be governed by the provisions of section 413 (other than subsection (d) of that section) of the Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 853).

(h) Rule of Construction – For purpose of subsection (a)(7), a single identification document or false identification document that contains 1 or more means of identification shall be construed to be 1 means of identification.

Identity Theft and Assumption Deterrence Act of 1998 (This was included in the Bill signed by the President.)

CENTRALIZED COMPLAINT AND CONSUMER EDUCATION SERVICE FOR VICTIMS OF IDENTITY THEFT.

(a) IN GENERAL – Not later than 1 year after the date of enactment of this Act, (October 30, 1998) the Federal Trade Commission shall establish procedures to

1: – log and acknowledge the receipt of complaints by individuals who certify that they have a reasonable belief that 1 or more of their means of identification (as defined in section 1028 of title 18, United States Code, as amended by this Act) have been assumed, stolen, or otherwise unlawfully acquired in violation of section 1028 of title 18, United States Code, as amended by this Act:

2: provide informational materials to individuals described in paragraph (1); and

3:refer complaints described in paragraph (1) to appropriate entities, which may include referral to

A: – the 3 major national consumer reporting agencies; and

B: appropriate law enforcement agencies for potential law enforcement action.

(b) AUTHORIZATION OF APPROPRIATIONS – There are authorized to be appropriated such sums as may be necessary to carry out this section.