Identity Theft
The dawning of the information age brought about many changes that make our lives more convenient. Things like ATM’s, online banking, cell phones, online shopping, e-filing are now commonplace and during the course of a normal day most people don’t give these a second thought. Unfortunately, the information age also brought to light a new type of fraud, identity theft, which is becoming more prevalent daily. Between 500,000 and 700,000 people every year become victims of Identity Theft. The following paragraphs will outline the vulnerabilities, provide tips to prevent the theft from occurring, and offer advice on what to do if you find yourself victimized by identity theft.
Each time you share personal information such as a social security number, account number, name, address or phone number you drop a small piece of the puzzle that a thief needs to assume your identity. Currently the most common form of Identity theft is Credit Card fraud. This occurs when a Thief uses your name and personal information to open a credit card account in your name.
Identity theft can happen quickly and can cause enough damage that some people end up spending months or years trying to straighten out the mess. While the victim has done nothing wrong, the same computers and information networks that made theft of the victims identity easier, now see the victim as the responsible party, this can lead to lost job opportunities, loan and mortgage refusals, and in extreme cases even arrest for fraud. In the best case scenario while a victim is not usually responsible for
If you have ever received a call about a loan you don’t remember taking or a purchase on your credit card you don’t remember making, or even if you have simply lost your wallet, keep identity theft in mind.
How Does Identity Theft Occur?
There are many ways a thief can obtain personal information. Here are a few of the most common techniques used:
- They steal your mail, including credit card statements, pre-approved offers or phone cards.
- They obtain and submit change of address forms to divert your mail to another location.
- They steal your wallet or purse, gaining access to your credit cards and driver’s license.
- They obtain a copy of your credit report by posing as your landlord, employer or anyone else that might have a legal right and need to obtain the information.
- They locate and use personal information you share on the internet.
- They find personal information discarded in your trash at home or work.
- They partner with an inside source such as a store clerk to obtain credit card information.
How Does a Thief Use Your Personal Information?
An identity thief uses your personal information much the same way that you do. For example:
- The thief fills out a pre-approved credit card form they find in your trash, they change the address and use your name, date of birth and social security number. Once the card arrives they use the card and don’t pay the bill, subsequently the delinquent account shows up on your credit report.
- The thief establishes phone, wireless of utility services in your name.
- The thief calls your credit card company after obtaining your personal information and asks to change the mailing address; this allows the thief plenty of time to use the card, since the bills are no longer coming to you and it usually takes some time to notice.
- They buy cars or take out loans in your name.
- They counterfeit checks or debit cards to empty your bank account.
- In extreme cases, identity thieves have even filed bankruptcy under the names they fraudulently used to establish a mortgage or rent in order to avoid eviction.
What Can I Do To Protect Myself?
While it’s practically impossible to prevent identity theft, you can minimize your risk and exposure. By maintaining vigilance over your personal information and keeping a strong sense of awareness you can protect yourself as much as possible while still enjoying the conveniences of modern technology.
Things To Do Before You Become A Victim
Obtain Copies of your credit report
Obtain a copy of your credit report from each of the three major credit reporting agencies each year. This will allow you to verify its accuracy and give you a heads up to any possible discrepancies. This is the most common way people find that they have been victimized, don’t underestimate the importance of self-review of your credit report, its always better to find the problem yourself than to discover it because you have been turned down for a loan or denied a mortgage. Credit reporting agencies are allowed by law to charge up to $9.00 for a copy.
Credit Bureaus
Equifax — www.equifax.com
To get a copy of your report, call: 1-800-685-1111
or write:
Fraud Hotline, call: 1-800-525-6285
or write:
Experian — www.experian.com
To order a copy of your report, call: 1-888-EXPERIAN (397-3742)
or write:
Fraud Hotline, call: 1-888-EXPERIAN (397-3742)
or write:
TransUnion — www.transunion.com
To order a copy of your report, call: 800-916-8800
or write:
Fraud Hotline, call: 1-800-680-7289
or write: Fraud Victim Assistance Division,
Secure Personal Information
Keep your personal information or papers containing personal information in a locked drawer, safe or lockbox. If you like most people are inundated with junk mail, especially pre-approved credit offers, it is usually wise to obtain a document shredder, they can be obtained at any office supply store and are relatively inexpensive. When sending outgoing mail containing personal information it is always better to us a postal collection box or the local post office instead of an unsecured mailbox. If you are leaving town and wont be home to pick up your mail, call or stop by your local post office and request a vacation hold until you return.
Password Your Information
Most companies will allow you to place a password on your credit card, bank, and phone accounts. Avoid weak and easily obtainable passwords like family names, birthdays, social security numbers, or consecutive number sequences. When opening a new account many businesses have a line asking for your mothers maiden name, its smart us use a password uniquely known to you instead.
Know the safety Procedures of Your Employer and Businesses You Work With
Find out who has access to your personal files and verify how they are kept, their disclosure procedures and disposal processes.
Be Alert and Guard Your Personal Information
Don’t give out personal information over the phone unless you have either initiated the contact or can verify exactly who you are speaking with. Identity thieves can masquerade as bank representatives, loan officers, government workers and even internet service providers. If you are unsure of the legitimacy of the person you are talking to, offer to call them back. Do not return the call at the number they give you, return that call to the customer service number printed on your billing statement, phone book or company web page.
Only carry identification, credit and debt cards that you know you will need on any given day. Don’t carry your social security card with you unless you know your going to need it, leave it in a secure place at home.
Give out your social security number only when absolutely necessary. Ask if there are other types of identifiers you can use as an alternative. Many states use Social Security numbers as driver’s license numbers, but offer alternatives if you ask. Use your best judgment, some businesses require your social security number for certain services in order to conform to their own security policies. Employers usually need your social security number for wages and tax purposes. Others like mortgage and utility companies usually require them for credit checks. Sometimes they simply wish to use your social security number for general records keeping. Just because a company asks for your social security number doesn’t mean you have to give it to them. If you are asked for your social security number ask them a few questions about who and how it will be used. Any legitimate company will give you their reasons, legal requirements and explain any benefits requiring its use.
Be alert for phone scams, that free vacation to the
Pay attention to billing cycles on utilities, credit cards, and bank statements. If they don’t arrive reasonably close to on time, there is a chance that identity theft has occurred and the thief has changed your billing address to attempt to remain undiscovered.
The most vulnerable point for personal information in most homes is the personal computer. An unsecured computer can leave a treasure trove of personal information easily available to a knowledgeable thief. Viruses, Trojan Horses and open ports can leave your computer vulnerable to attack.
What to do if you are a victim of Identity Theft
Sometimes even with the best effort at protecting yourself, identity theft can occur. If you suspect that someone has been using your identity to commit a fraud or theft, immediately begin to take action. There are usually four steps that need to be taken to protect yourself.
First Make Sure You Really Have Been Victimized
Retrace your steps. Is the charge or loan in question really illegitimate? Often times an unknown charge or collection can come from a forgotten account, a co-signed loan or even a mail-in offer that was forgotten. Nothing is more embarrassing or troublesome than following the rather inconvenient steps required to stop Identity Theft than the find out in the end that Identity Theft never occurred.
When you are sure that Identity Theft has occurred take the following steps:
Alert the local police and the police in the place where the identity theft took place.
File a police report in case the bank, credit union or credit card company needs proof that the incident occurred. Even if the thief remains at large, having a report on file will help in dealing with creditors. When you file the report be sure to provide as much documentation as possible to prove the theft occurred. Collection letters, credit reports and a notarized affidavit will go a long way towards helping the police catch the crook. Don’t take no for an answer, if the local authorities refuse to take the report, go to the county police or state police. Explain that the credit bureaus require the report in order to block further fraudulent accounts and debts from appearing on your credit report.
Second, Alert the fraud departments of each of the major credit bureaus.
Explain that you are a victim of identity theft and request that a fraud alert be placed on your file. This will require creditors to contact you before opening or changing existing accounts. Also ask for copies of your credit report so that you can scour them for accuracy. Review them carefully to make sure there are no other incidents you were not aware of. Credit bureaus are required by law to provide a free copy of your credit report if your report is inaccurate due to fraud, but you usually must request the copy in writing.
Third, close all accounts that you think may have been abused or opened without your authorization.
Remember, this can include all bank accounts, credit card companies, mortgage lenders, utilities, cell phones and internet service providers. Be thorough in looking for instances of fraud if you find one there are likely to be more. If you find charges or unauthorized ATM withdrawals immediately report them, cancel the card and ask for a replacement with a new account and pin number. If you find you are the victim of check fraud, stop the payment and ask your bank to notify the check verification service it uses such as Telecheck. Most states have laws that limit your liability in the case of check fraud but they only apply if the bank is notified immediately on discovery. This also applies to lost or stolen cards and checks.
Most importantly when dealing with Identity theft….Document everything.
Keep track of each phone call or contact made regarding the issues, not only will this help with your police report it will also help in dealing with credit bureaus and debtors. Keep track of phone calls, letters and replies regarding your case.
Stay Alert
Keeping track of your personal information doesn’t have to an experiment in paranoia. Following the relatively simple guidelines of safe personal information management can keep you relatively secure that your personal information stays that way.