Identity Theft

 


Identity theft has recently become a hot topic. Many states, such as California, are creating new laws to deal with it. In this article we will provide you with information to clarify the subject.

The Privacy Rights Clearinghouse estimates there are between 500,000 to 700,000 identity theft victims each year. It is now the fastest growing crime in America according to the Social Security Administration.

So What Is Identity Theft?
Identity Theft is when someone steals your identity and impersonates you. They don’t try to look like you, but they use your “identity” in the form of your social security number, drivers license number, credit card number, or any other form of “identification” they need in order to get what they want. They may acquire credit cards, cars, houses, apartments, other items, or even engage in criminal activity under your name and personal identifiers.

How Would I know If I Have Been A Victim Of Identity Theft?
You are going about your life as usual and you decide to purchase a new car. You know your credit is good because you have never missed a payment in your life. Only this time, you get turned down for credit. WHAT? You look at your credit report and find that there are accounts on your credit that don’t belong to you and have not been paid. You Are Now A Victim!

Or

You are sitting at home and the doorbell rings. You go to the door and find two police officers standing there. They ask for YOU. You tell them you are who they are looking for and they start to read you your rights. You ask what this is all about and they tell you that you are wanted in connection with a crime. A car registered to you was used in a bank robbery. But it wasn’t your car. You Are Now A Victim!

So, How Does This Happen?
There are many ways criminals can get your personal information. As stated above, they use anything from your ID information to your calling cards. Stealing this information has gone from very low tech to very high tech. Just a few examples are:

  • Stealing your mail

  • Looking through your garbage

  • Stealing your wallet or purse

  • Looking over your shoulder as you enter PIN numbers into an ATM machine or your calling card number at a pay phone

  • Posing as your employer, bank or utility company needing to “update their records”

  • Calling you on the phone and asking you to give other vital information

  • Grabbing information off un-secure internet sites

  • Completing a “change of address form” at the post office

  • Stealing the information from “the inside” as you pay for items with credit cards or debit cards or checks at the store or a restaurant. This has gone from as easy as writing the information down after you give them your credit card to much more high tech devices that actually pull the information “out of the air” as it is transmitted to the credit card companies.

Once the information has been obtained, they can use this information to open new credit card accounts in your name providing a new address. Since the credit card bills would not go to your address, you would not be aware of the new account. Then when the bills are not paid the credit card company will report the late payments to your credit file and you still won’t find out until you need credit. They can also open bank accounts in your name and write bad checks, apply for services and then even request more credit cards. The list is endless as to what they can do and how much it can hurt you.

Is There Any Way To Protect Myself And Keep This From Happening?
There is probably no way in our society to absolutely protect your self from having this happen. However, there are ways you can minimize your chances of having it happen. Most of these are very easy and really common sense if you think about it. The cost and the hassle of getting this mess cleaned up is more than worth the time to protect you. The easiest ways are:

  • Carry only the credit and ID cards that you need to have with you. Keep all other cards stored in a safe place.

  • Sign your credit cards immediately OR write “SEE ID” on the card instead to force them to look at your ID and then at you to make sure it is really you.

  • Do not carry your social security card with you. Keep it in a safe and secure place.

  • Do not keep your PIN numbers or social security numbers with you in any form.

  • Shred any document that contains your credit card number before you discard it.

  • Check receipts to ensure you received your own and not someone else’s.

  • Notify your credit, debit, or ATM card issuer or bank if you do not receive your statements. Someone could have easily taken them from your mailbox.

  • Do not give personal information or account information to anyone until you have confirmed the identity of the person requesting the information and verified that you really need to give them the information.

  • Subscribe to one of the credit bureau services to receive your credit report and monitor your activity on a regular basis. Check it to be sure all the accounts really belong to you.

  • Don’t give information to the cashier who asks for your phone number at stores.

If I Do Become A Victim, What Should I Do?
Act quickly! The sooner you can get on top of this the less damage they can do to you. Here are some steps to take:

  • Contact the fraud division of the three credit reporting agencies to let them know you have been a victim of identity theft.

Equifax: 1-800-525-6285
Experian: 1-888-397-3742
Trans Union: 1-800-680-7289

  • Request they place a “Fraud Alert” on your file. This alert will warn lenders to be especially careful in authenticating the identity of anyone claiming to be you. It will mean that you cannot open instant credit but that is a minor inconvenience compared to the damage that can be done.

  • File a report with your local police department and make sure to get a copy of the report.

  • Contact each credit grantor who has allowed a fraudulent account to be opened and tell them you did not open that account. Have them close the account. If you open new accounts, make sure to place a password on the account.

  • Call the Identity Theft Toll-Free Hotline at 1-877-IDTHEFT (1-877-438-4338). This is the central point of contact within the federal government for reporting incidents of identity theft.

  • Document all contacts with dates, names and phone numbers for your records.

  • Utilize this helpful form –FTC ID THEFT Affidavit (PDF File)

For additional information or resources regarding Identity Theft, visit the Privacy Rights Clearinghouse online at www.privacyrights.org, or the Federal Trade Commission online at www.ftc.gov.

So Now I Understand
It is becoming more clear every day why the state and federal government are starting to take more and more steps to protect us from this ever growing crime. Although we may not always agree with them, these laws are to protect us from the crooks out there. Be prepared for more laws in every state that will start to deal with these problems like the laws that have just been passed in California.