ID Theft
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.
Q & A's on Identity Theft
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.
Useful Contact Information
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
