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Identity Theft - ID Theft

• Credit card fraud (28%) was the most common form of identity theft followed by phone or utility fraud (19%), bank fraud (18%), and employment fraud (13%) Jan-Dec 2004

Identity theft is now an everyday occurrence can happen to anyone. Previously, criminals stole your wallet for your cash. Now they want your wallet to steal your good name. Protect yourself and your identity.

What Is Identity Theft

We have been hearing more and more about Identity, or ID theft, in the news as it has become an industry of its own in the criminal marketplace. Id theft is when someone gathers enough information about you to pass themselves off as you. The purpose of the ruse is to access your personal information including your credit rating, credit cards accounts, bank accounts, or anything else they think will yield a profit.

The most common form of identity theft in 2004 was credit card fraud (28%), followed by phone or utility fraud (19%), bank fraud (18%), and employment fraud (13%). The thieves are looking for information such as your name, address, driver's license number, Social Security number, mother's maiden name, birth date, or financial information such as your bank account, credit card, or PIN number. It used to be that criminals stole your wallet or purse to rifle through for cash to spend, now they want to steal something much more valuable – your identity.

How The Information Is Used

White collar criminals may use your personal information to get a new driver’s license or Social Security Card which will allow them to open new credit card accounts, checking accounts, utility accounts, or apply for a job using your credentials. With sufficient information, they can make purchases on your current credit or checking accounts.

Often times, individuals are not aware they have become victims of identity theft until their credit application is declined, they receive mysterious bills from companies they never did business with, or they are turned down for a job.

Once the crime is discovered there are laws in place to assist you with getting your life back, but it could still take months or years to rebuild your good credit following the devastation of identity theft. Remember, ID theft is a felony offense and should be reported to authorities as soon as you discover that you have been hit with this crime.

How to Prevent Identity Theft

Thieves get your identifying information from many sources, such as credit card applications, bank statements, or checks. They can easily collect this information from your trash or mailbox, or by finding your lost or stolen wallet or purse. No longer just scoundrels waiting on street corners to steal your money, these thieves are high tech. They can get your information by hacking your credit card number from a corporate database, or stealing your information from inside a company that holds it. They conduct ‘phishing’ scams as well.

Just as the name implies, “phishing’ is where those with criminal intent ‘fish’ for information. They send out emails that resemble legitimate companies’ emails, or make phone calls, asking for personal information such as account numbers or passwords. The email may look entirely legitimate, or the caller sound official, and many people fall for this technique. Let’s say you receive an email from, Your Bank, saying they are updating their information or that they suspect fraudulent activity on your account and want to be sure everything is working properly; don’t respond with the requested information. Report such contacts to your bank immediately. 

Take care to shred your personal and banking information before tossing it in the trash; if you are applying for credit or bankcards drop the application into a US Postal box or the post office. Don’t flag down the thieves and give them access to valuable information by leaving it out in front of your house for easy pickings.

If your purse or wallet is stolen, you should immediately cancel your credit and debit cards and put a stop payment on all of your lost or stolen checks. In addition, of course, you should report theft to the police. If your suspect or find out that the missing documents have lead to identity theft you should contact The Federal Trade Commission (FTC), which has authority to prosecute identity theft at the federal level. You can contact them by calling (877) IDTHEFT (877) 438-4338), or visit their Web site at www.ftc.gov.

DANGER SIGNS 

Warning signs include:

*You receive bills from a credit account you did not open.
* You see unauthorized charges on your credit, long distance, or bank accounts.
* You are contacted by a collection agency regarding a debt you did not incur.
* Checks disappear from your checkbook.
* Bank and credit billing statements don’t arrive on time.
* Your credit report shows accounts you did not authorize.
* You are turned down for a credit card, loan, mortgage, or other form of credit due to unauthorized debts on your credit report.

If You Suspect You Are The Victim Of ID Theft

If you believe your identity has been stolen, the Attorney General recommends that you file a report with your local police department, then place calls to your bank and credit card companies advising them of the theft and following their recommendations. Often you will have to provide a copy of the police report to verify the theft.

Next you will need to contact the three major credit-reporting agencies listed at the end of this report. You will need to ask them to put a security alert on your report so they can be vigilant in making sure false information reflecting poor credit habits that were the actually the result of ID theft. When you call them you should ask for a copy of your current credit report to verify the information on it is correct and that fraudulent activity has not infiltrated your report or other credit accounts opened in your name without your consent. 

After the phone calls have been made be sure to follow up by sending a copy of the police report along with a letter of explanation and reiteration of the information you gave them in the phone call. Keep a copy of everything you send out, as well as correspondence you receive back from the agencies, banks, or credit card issuers. 

Don’t forget to monitor your credit reports over the next several months to ensure no additional accounts have been opened in your name, or that unexpected inquiries have been made on your report that would indicate that your identity is still being used. New laws allow you to access your credit report for free once each year from each of the three major reporting agencies listed below. 

Report fraud or request a copy of your credit report by contacting the three primary credit reporting bureaus:

EXPERIAN
P. O. Box 2104
Allen, TX 75013-2104
www.experian.com
(888) 397-3742

EQUIFAX
P. O. Box 740241
Atlanta, GA 30374-0241
www.equifax.com
(800) 685-1111 (order report)
(800) 525-6285 (report fraud)

TRANS UNION
P .O. Box 2000
Chester, PA 19022-2000
www.transunion.com
(800) 888-4213 (request report)
(800) 680-7289 (report fraud)

Reporting fraud to one credit bureau will cause each of the other two agencies to also place a fraud alert on your file and send you a copy of your credit report.

You can reduce the chance that you will be a victim of identity theft by taking the following precautions:

* Minimize the amount of personal financial information you carry. Memorize passwords and PIN numbers instead of carrying them with you.
* Keep personal financial information in a secure place in your home. Shred identifying information before throwing it away.
* Do not give sensitive information to unsolicited callers. Remember that most legitimate businesses will not ask for your Social Security or bank account numbers.
* Shield your hand when entering your PIN at a bank ATM or when making long distance calls with a calling card. Take your credit card receipts and ATM slips. Shred them before throwing them away.
* Pick up new checks or a new or reissued credit card at your bank rather than having them delivered to your home. Do not have your driver's license number or social security number printed on your checks.
* If your bank or credit card statement does not arrive on time, call the issuer to make sure they are being sent to the proper address. Also contact the Post Office to see if a change of address has been filed in your name. 

A thief may steal or divert your statements to hide illegal credit activity.

Keep your personal financial information off corporate marketing and billing databases as much as possible to reduce the chance that your information will be hacked or stolen. To be removed from many mailing lists for up to five years, sign up online at www.the-dma.org, or write to:

Direct Marketing Association
Mail Preference Service
P. O. Box 643
Carmel, NY 10512

Limit the number of pre-approved credit offers you receive by removing your name from the marketing lists of the three credit reporting bureaus. Call 888-5OPT-OUT (888) 567-8688.

If any of your credit card issuers send random-issue convenience checks, request in writing to be removed from that mailing list. Ask your bank about its privacy and information policies. Find out under what circumstances your bank may provide your account information to a third party. Request that you be notified in advance and ask if it is possible to opt out of this practice.

Do not carry your Social Security card with you unless you need it for a job application. Release your Social Security number only when absolutely necessary or when required by law. Ask the requestor if another identification number can be used instead. Never print your Social Security number on your checks. If your workplace displays your Social Security number on a timecard or other place open to public view, ask to have this procedure changed. If you are over age 25, you should receive a Social Security statement by mail each year. Check your statement thoroughly and report any inaccuracies to the Social Security Administration. You can order a copy of your statement by calling (800) 772-1213 or by accessing the Social Security Web site at www.ssa.gov.

Order a copy of your credit report at least once a year from each of the three credit bureaus listed in this brochure to check for inaccuracies or fraudulent use of accounts. Even if you have not been the victim of identity theft, consider asking the credit bureaus to place a security alert on your account as a protective measure. This alert instructs creditors to call you personally to verify applicant information. While this will mean that you can no longer get instant credit, such as on-site approval for store charge cards, it will also stop others from getting credit in your name. Be sure to ask how long the alert will be in effect and how to extend it if necessary.

Reduce the number of credit cards you use and only carry the cards that you intend to use. Use credit cards that have your photo on them. This makes it more difficult for an imposter to use stolen cards at a store. If you receive an offer for a pre-approved credit card or loan but aren't interested, shred the application form before throwing it away.

Check your bank account and credit billing statements carefully each month for unauthorized activity. If you receive a credit card in the mail that you did not request, call the issuer to find out why it was sent to you. If it was requested by someone else in your name, cancel it immediately. When creating a password for an ATM card, long distance account, credit card, or other form of credit, do not use common numbers such as your birth date or the last four digits of your Social Security number. Avoid using names, such as your mother's maiden name or your birthplace, that are likely to appear in public records accessible to thieves.

If you store financial records on your computer, use passwords and install an electronic firewall to keep burglars and Internet hackers from accessing your computer. Do not give your credit card number or other financial information over the Internet unless you are certain you have a secure server connection. These usually include an “s” after the “http” web address and a icon of a “closed lock” or “key” at the bottom of the screen. Save the transaction number or confirmation number provided to you by the business and make a note of the date/time of the transaction and what you ordered. Review the privacy policy of any on-line companies you deal with request that they not share your financial information.

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