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IDENTITY THEFT
How Identity Theft Can Affect You
The consequences of
identity theft can be staggering. Victims spend extensive time closing
bad accounts, opening new ones, and fixing credit records. There
can be high out-of-pocket expenses related to clearing your name. You
could be denied loans and jobs and, though unlikely, you
could even be mistakenly arrested as a result of crimes committed
in your name.
What Identity Thieves Do with Your Information
I dentity thieves
frequently open new accounts in your name. They often apply for new
credit cards using your information, make charges, and leave the bills unpaid.
It is also common for them to set up telephone or utility service in
your name and not pay for it. Some victims have found that identity
thieves applied for loans, apartments, and mortgages. Thieves have also been
known to print counterfeit checks in a victim’s name.
Thieves also often
access your existing accounts. They may take money from your bank accounts,
make charges on your credit cards, and use your checks and credit
to make down payments for cars, furniture, and other expensive items.
They may even file for government benefits including unemployment
insurance and tax refunds. Unfortunately, thieves
often use a stolen identity again and again. It is very common for victims
to learn that thieves have opened and accessed numerous
accounts, often over a long span of time.
How Identity Theft Happens
Four out of five victims
have no idea how an identity thief obtained their personal information.
Among those who think they know what happened, many believe the
identity theft occurred when their purse or wallet was stolen or lost.
Thieves also steal identities from the trash this is called "dumpster
diving" and it can occur at home, at work, or at a business. Mail can be
stolen from your home mailbox, from a drop-box, at businesses, and even
directly from postal workers. Home computers can be infected with
viruses that transmit your data to thieves. Group identity theft has
become a major problem for consumers. A thief gains access to a place
that keeps records for many people. Targets have included stores,
fitness centers, car dealers, schools, hospitals, and even credit bureaus.
Thieves may either use the stolen identities themselves or sell them
to other criminals.
"Pretexting" is a method
of identity theft that is on the rise. The identity thief poses as a
legitimate representative of a survey firm, bank, Internet service
provider, employer, landlord, or even a government agency. The thief
contacts you through the mail, telephone, or e-mail, and attempts to get you
to reveal your information, usually by asking you to "verify" some
data. Victims of identity
theft often find that someone they know has
committed the crime. Roommates, hired help, and landlords all have access to your
home, and it is possible for them to
access private information.
Identity theft within
families is also fairly common. This causes particular difficulties, because
victims may be reluctant to notify the authorities or press charges. People
are especially vulnerable when ending
relationships
with roommates and spouses. Identity theft often goes
undetected.
Within a month of being committed, half of the crimes still
remain unnoticed.
One in ten stays hidden for two or more years. Identity
thieves may change
"your" address on an account so that you won’t ever
receive the bills with
the fraudulent charges on them. They will often pay the minimum balances on
accounts they have opened, so as to avoid
calling attention to the account and
having it cut off. They may even use the identities of
children or persons who are deceased,
so that the crime is less likely to be noticed.
Steps to Prevent Fraud
Think about taking care
of your identity on a regular basis just like you take care of your
health. Some activities you do every day, like brushing your teeth and taking
vitamins. Other actions should be taken once or twice a year, like
getting dental check-ups and an annual physical. On the following pages are some steps to follow
to protect your identity.
Change Your Daily Routine
At Home
In the home, keep personal information safe, especially if you
have roommates or are having any work done in your home. Don’t keep Personal Identification Numbers (PINs) near your checkbook, ATM card, or debit card. Shred any papers with confidential information before you throw them out even the junk mail. (I recommend a crosscut
shredder as they make it harder to piece information back
together.)
Anything with an account number
can be used in identity theft. This includes prescreened credit card offers, receipts, canceled checks, bank statements, expired charge cards, doctors’ bills,
and insurance documents. Since many identity thefts are traced to having a purse or
wallet stolen, carry as few cards with
identification and personal information as possible. Don’t
take your social security number, and bring as few credit cards as you can.
Think about putting different cards in different parts of your purse or knapsack.
You should be wary of
any mail, telephone, or Internet request for information it could be "pretexting."
Unless you initiated the contact with a business, don’t
give out any confidential information such as your credit card number,
social security number, PIN, birth date, or even your mother’s maiden
name. Also be careful of unexpected e-mails that look as if they are from
a legitimate company asking you to enter some information at a linked
web site; sometimes phony web sites can look real. Make sure your family
members also know not to give out any information to others.
Anything with an account number on it can be used in identity theft.
Check your banking and credit statements soon after you receive
them and make sure there is no unexplained activity. Keep track of
when in the month each of your bills usually arrives. If a bill does not
arrive on time, call the company to make sure no changes have been made to your account. Often, identity thieves will change the address of
a bill so that it will take you longer to figure out the scam. If
you’re careful, you may notice the theft earlier.
Out of the Home — Shopping and Services
When you sign a credit card slip, avoid putting your address,
telephone number, or driver’s license number on it. Also, be sure to take
your receipts with you to shred at home because "dumpster diving" is
very common at large retail areas, such as malls. This will help to
minimize how much personal information about you is floating around out
there. Be particularly wary of giving out your social security number. Few institutions businesses granting you credit, employers filling
out tax forms for you, or government agencies have any reasonable
cause to know your social security number. However, a
business may refuse to serve you if you do not give them the information they request. It is up to you if you still want to do business with the establishment.
Be particularly wary of giving out your social security number.
Check your personal information
Your Credit Report
Many people don’t
realize they are victims of identity theft until long after the initial crime
occurred. Identity thieves often try to hide the crimes for as long as
possible so that they can access more money. To stop the crimes as
soon as possible, make sure you carefully check your credit reports
regularly. Your credit reports are important tools for limiting the amount of damage a thief can cause.
How to Read Your Credit Report
1.
Check to make sure you are aware of all
accounts listed,
and
that balances are what you expect them to be.
2.
Look
for anything suspicious in the section
that lists who has received a copy of your
credit history.
Some identity thieves "pretext"
by posing as a landlord
or employer.
3.
Make
sure no inquiries have been made
about loans or leases you didn’t apply for.
4.
Check for addresses where you have never lived.
5.
Check for typos in your social security number.
6.
If
there is any incorrect information in
the records,
contact
the credit bureau, creditor, employer, or
government
agency immediately. Follow up with a letter describing what actions were taken. Your protections are usually stronger if you report the problem quickly and in writing.
Contact each of the three major credit reporting agencies to
order a copy of your credit report at least once each year. (The phone
numbers and addresses are listed at the back of this booklet.) Your credit
report will generally contain information on where you
work and live, the credit accounts that have been opened in your name, if you own a home, if there are any liens against your home, how
you pay your bills, and whether you’ve been sued, arrested, or
have filed for bankruptcy.
Consider canceling credit cards you haven’t used
in a long time.
You can also consider adding a "fraud alert" to make
it harder for thieves to open new accounts without your knowledge. With a
fraud alert, the credit agency has to call you to confirm any request
it receives to open a new account in your name. If you decide you want this
service, just contact the credit reporting agencies.
At Work
The newest trend in identity theft is to hit groups of people,
and workplaces can be vulnerable. Find out if your company has a policy about
protecting its employees from identity theft. Make sure your
employer stores your personal information in a safe place. Also, find out
which other employees have access to your personal information.
C ompanies
and Agencies with Which You Do Business
Identity theft can occur through records maintained by your
bank, credit card companies, the Department of Motor Vehicles, utilities,
insurance companies, and phone companies. Try to have as little
information as possible printed on any cards these groups may issue. If you
want, ask these companies about
their policies with regard to sharing your information. You can stop many components of information sharing.
When choosing a PIN, use
one that is hard for someone to guess. Avoid using the last
four digits of your social security number, your mother's maiden name,
birth dates, names of pets, or even the name of sports team you
support. Try to mix numbers, letters and if possible, symbols.
Make it harder for thieves to use your accounts. Put passwords
on credit card, bank, and phone accounts. Get credit cards with
your picture on them. Call the companies that issue the accounts and find out what security options they offer. Don’t print your social security number or phone number on your checks. Don’t have your checks delivered to your home go and
pick them up yourself at your bank.
Try not to use your social security number as an identifier:
Check
your drivers license to make sure you are not using your social security number as identification. Few states require this.
Often
times a school, an employer, a health insurer or other institution will
use your social security number as your identifier. Ask them to use another number instead, if they can.
The
only places you must use your social security number are on government and financial forms, such as tax forms or most credit
applications.
Your Mail
Reduce the circulation of your information through the mail.
Stop receiving prescreened credit offers by calling
1-888-5OPTOUT. You can also reduce direct mail marketing and telemarketing by
contacting the Direct Marketing Association. Notify each of the three major
credit bureaus that you do not want personal information about you
shared for promotional purposes. (This will also reduce unsolicited
mail.) Consider putting a lock on your mailbox.
Identity Theft Insurance
Home insurance policies can include "identity theft insurance"
as an option. But know that if you are a victim, insured or not, you
should be able to get out of paying all fraudulent bills.
What to Do If You Are a Victim
of Identity Theft
There are several steps you can and
should take to protect yourself if you are a
victim of identity theft.
Begin documenting the time and
money you spend on straightening out identity theft.
Make Sure to Document Your Actions
Begin documenting the
time and money you spend on straightening out identity theft. In
some states, any person found guilty of financial identity theft will be
ordered to pay restitution to the victim for any financial loss, including lost wages.
• Keep copies of correspondence and documents related to the
theft.
•
Write records of all telephone calls, including the date and
time of your call and the name and title of the person who
assisted you.
• Write letters to confirm all phone conversations. Include the
date, the name of the person you spoke with, and what
actions were
taken.
•
To be extra careful, send documents and letters Return
Receipt Requested and keep the postal receipt with your
copy.
Consider using the ID
Theft Affidavit to avoid having to complete
different
forms. This form can assist you in disputing inaccurate
information
that appears on your
credit report as a result of fraud. It’s available at the
following web site www.consumer.gov/idtheft/ Keep copies of all affidavits that you
send.
Contact the Police
Immediately call the
police to file a report with your local law
enforcement.
If your identity was stolen when you were away from
home, you
may need to contact the police in that jurisdiction, too.
Opening a police
case accomplishes two things: First, the police can start investigating the
crime. Second, you will need information from the police report to
help you straighten out your credit and accounts after the crime. When
you talk to the police, make sure you get the police report number
and information on how to reach the investigator. Give this information to all
the companies you contact in getting your credit cleared up after
the crime.
Stop the Damage
After you call the police, contact the credit bureaus. Next,
contact any credit card companies and banks where your accounts may be at
risk.
Credit Bureaus
Contact the fraud departments at each of the three credit
bureaus.
Equifax:
(800)
525-6285
Experian:
(888)
EXPERIAN (397-3742)
TransUnion:
(800)
680-7289
•
Get all three agencies to flag the accounts with a "fraud
alert." Find out from each credit reporting agency how long the fraud alert
will remain on your report, and how to extend that time, if needed. Ask that all creditors contact you at a phone number you provide to verify all future applications.
• Add a "victim’s statement" to the report; include your name,
state the problem, and provide a telephone number where you can be
reached.
•
Have each credit bureau send you a copy of your report. These
reports will guide you in tracing where and when any fraud occurred to
your accounts.
•
In a few months, order
new copies of your reports to verify your
corrections
and changes, and to make sure no new fraudulent activity has occurred. Unfortunately, identity thieves often strike the
same accounts again
and again. Because of this, it is very important to
continue
to monitor your credit reports very closely for a while after
the initial crime. Even with a "fraud alert," thieves may still find
ways to open new
accounts. Ask the credit bureaus if they will supply you with free reports every few months.
Credit Card Companies
If a thief has gained
access to a credit card, contact the security department of that credit card company.
•
Close any affected accounts so that they’re registered as
"closed at customer request."
•
Get new account numbers, and protect the accounts with
passwords.
•
Follow up with a letter documenting the date, the name of the
person who helped you, and what actions were taken.
Just because one card has been compromised, you may not want to close all of your credit accounts, and you may want to hold on
to some cards. You may want to get counseling about this decision from a
victim assistance group.
Banks
Inform your bank if your wallet or purse was stolen or lost.
Tell them what bank account information, including account numbers, ATM
cards, or checks it contained.
•
Cancel checking and savings accounts and open new ones.
• Stop payments on outstanding checks.
•
Get a new ATM card, account number, and PIN or password.
Contact the Government Authorities
It is also good to contact other authorities that specialize in
identity theft. The Federal Trade Commission (FTC) runs the ID Theft
Hotline and the ID Theft Data Clearinghouse.
FTC Identity Theft Hot Line:
(877) IDTHEFT (438-4338)
If your social security number has been compromised, report it
immediately to the Social Security Administration.
Social Security Fraud Hot Line:
(800) 269-0271
If mail service was used in the fraud, contact the U.S. Postal
Inspection Service. This agency is helpful if any fraudulent utility bills
or apartment leases show up on your credit report.
U.S. Postal Inspectors:
(800) 372-8347
If you would like to learn more, there are government and
consumer groups that can help you.
Below is a list of useful
organizations.
Credit Agencies
Equifax
P.O. Box 740241
Atlanta, GA 30374
www.equifax.com
Report Fraud:
(800) 525-6285
Order a Credit Report:
(800) 685-1111
Experian
P.O. Box 2002
Allen, TX 75013
www.experian.com
Report Fraud:
(888) EXPERIAN (397-3742)
Order a Credit Report:
(888) EXPERIAN (397-3742)
TransUnion
P.O. Box 1000
Chester, PA 19022
www.transunion.com
Report Fraud:
(800) 680-7289
Order a Credit Report:
(800) 916-8800
U.S. Postal Inspection Service
475 L’Enfant Plaza SW
Washington, DC 20260
www.usps.gov/postalinspectors
Social Security Fraud Hot Line
(800) 372-8347
Nonprofit Resources
Identity Theft Resource Center
P.O. Box 26833
San Diego, CA 92196
(858) 693-7935
www.idtheftcenter.org
Privacy Rights Clearinghouse
3100 - 5th Ave., Suite B
San Diego, CA 92103
(619) 298-3396
www.privacyrights.org
Victims Assistance of America, Inc
P.O. Box 33752
Washington, DC 20033
(502) 292-2456
www.victimsassistanceofamerica.org
Federal Government Resources
Federal Trade Commission
Identity Theft Clearinghouse
600 Pennsylvania Avenue, NW
Washington, DC 20580
www.consumer.gov/idtheft
Report Fraud:
(877) IDTHEFT (438-4338)
Credit Bureau of
Quincy
510 Maine
Quincy, Illinois
62301
(217) 222-1500
www.cbqservices.com
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