Are You Protected from Identity Theft?

You may have heard about it while watching the evening news. Perhaps you have read about it in your local newspaper. An unfortunate growing likelihood however, is that it has happened to you.

Identity theft is considered one of the fastest growing crimes in the United States. Over 500,000 people annually become victims of Identity theft. When one's personal information, such as their name, Social Security Number, banking account number, or any other identifying information is stolen and used or attempted to be used for unlawful purposes, identity theft has occurred.

Surprisingly, one third of identity thefts are carried out by a person known to the victim. This may be because such persons have easier access to an individual's personal records. Most individuals who have been victims of identity theft endure more than just immediate initial effects. The majority of victims of this crime have reported adverse secondary effects, such as higher insurance rates, increases on their credit card interest rates or credit line cancellations, the inability to obtain credit, and even evictions, criminal records, and the difficulty in expunging derogatory entries on their credit history.

Just how is it that someone can "steal" you? Modern day bandits range in their abilities; some are armchair computer techies surrounded by a slew of homemade circuit boards and a concocted recipe of intrusive programs, others are the guy from down the road, opening your mailbox or sifting through your trash like an underhanded raccoon.

What You Can Do

Dumpster diving is a roundabout way of referring to anyone who is willing to peruse through another's rubbish. One man's junk is another man's treasure, and the payout to the criminal in this case can be prosperous. Be careful what you are mindlessly tossing out. Anything that has identifying or potentially compromising information on it should be shredded or destroyed. If you invest in a shredder, a cross-hatched shredder is the way to go. No doubt many of you have seen the TV exposé where a strip-shredded credit card application was taped together, completed and sent in, with the not so surprising result of a credit line granted a few weeks later.

It's not just the paper trash that can give you problems. Electronics outdate and replace themselves at an alarming rate. What are you doing with those old computers and CPUs? Hopefully taking them to an authorized recycler, and perhaps doing a little surgery on the hard drive ahead of time.

As you know, the ubiquitous recycle bin on a computer desktop magically makes its contents disappear. Make no mistake however, items deleted out of the recycle bin are not forever gone. Much of what you delete is still swimming around on the hard drive somewhere, just so close to the bottom that you'll never see it. Before tossing your system, open it up and either remove the hard drive or score it with a screwdriver. Your computer's drive is a rectangular box with a ribbon strip of wiring going into it, about 5 inches in length, with generally 3 to 5 discs inside that resemble CDs.

Another simple way that a distressing amount of information can be obtained on a person is via the enormous online social networking and public search bill of fare. Everyone wants to find everyone else, and sites like Facebook and MySpace have made it all happen. Be aware of the privacy settings you have established and who is allowed to see what. Although few people would add their SSN or bank account numbers on these sites for others to see, listing your employment information and your vacation plans, for example, may allow unwanted individuals to discover when you are not at home.

Of course, there are the ever popular pick-pocketers and purse snatchers. Foil them by keeping your Social Security card out of your wallet. Be aware of the spam and the phishing emails. Do not reply to bogus offers, contests or credit applications that require personal information up front. Be aware too if your mail seems to be missing. A change of address form can easily be filled out, misrouting your bank statements, credit card statements and the like.

What Has Been Done For You

For the reasons mentioned above, in 1998 Congress passed the Identity Theft and Assumption Deterrence Act to address the problem of identity theft. This law made identity theft a federal crime, and punishable under the guidelines of federal law. In part, this law states that identity theft occurs when anyone "knowingly transfers or uses, without lawful authority, a means of identification of another person with the intent to commit, or to aid or abet, any unlawful activity that constitutes a violation of Federal law, or that constitutes a felony under any applicable State or local law."

The 1998 Act was required because the previous federal laws under U.S.C. Section 1028 that governed identity addressed only the fraudulent creation, use or transfer of identification documents, and not the theft or criminal use of the underlying personal information.

Identity theft has evolved into the electronic age, and as we discussed, is no longer just a "pick-pocket" type of crime. The 1998 Act now criminalizes fraud in connection with the theft and misuse of personal identifying information, regardless of whether the information appears or is used in any documents. The Act also toughened the penalty provisions of Section 1028. With some exceptions, violations are generally subject to a fine and or imprisonment of up to 15 years.

Additionally, because it is easier than ever before to share information electronically, new rulings in 2008 have also been established that give stricter definitions of when and how identity theft has occurred. It is now a crime for a person to intentionally attempt to copy, possess, or attempt to possess, any part of a computer database that was unlawfully accessed. A violator is guilty of a misdemeanor and is subject to maximum penalties of imprisonment for 3 years, and or a fine of $1000.

In order to account for the increase in the various types of identity documents that are now stolen, the term "means of identification" as found in Section 3 of the Act amends and broadens 18 U.S.C. 1028 to include "any name or number that may be used, alone or in conjunction with any other information, to identify a specific individual." Specific examples are cited to include an individual's name, Social Security number, date of birth, driver's license, unique biometric data, such as fingerprints or an iris image, as well as unique electronic identification numbers, such as an access code or personal identification PIN numbers.

Additionally, terminology that discussed "document-making implements" no longer refers to specific tools to alter identifying documents. It now includes any computer or any software that has been specifically configured or primarily used for making identity documents. The updated wording of the 1998 Act is intended to cover a variety of individual identifying information that may be developed in the future and used to commit identity theft crimes.

Section 5 of the Act directed the Federal Trade Commission (FTC), within one year, to establish a procedure to log in and record a database of individuals' identity theft complaints, to provide educational materials to these individuals and to refer the complaints to the appropriate authorities, including the three major national credit reporting bureaus. The FTC has done that. Their website, www.ftc.gov, has a link to report consumer complaints on companies, business practices, and identity theft. They also have a separate ID Theft Site devoted to the detection and deterrence of identity theft, as well as how to defend one from having their identity compromised. Victims may also call the FTC Consumer Response Center at 1-877-FTC-HELP.