Identity Theft: What You Should Know

Identity theft simply defined means another person using your personal identification information without your knowledge or consent. When a person's personal identity information has been illegally misused, the potential for loss and damages are astronomical. The processes you must go through in order to restore your financial security are drawn out and daunting at best. Some people have actually compared identity theft to rape, because they feel so violated. Others have found themselves frustrated and discouraged with the slow speed in which the wheels of justice seem to be concerned, as well as what is sometimes viewed a s a lack of action on the part of law enforcement. In some situations, a case of identity theft can be rectified with a simple phone call. In others, it has turned into a legal nightmare of costly Lawyers, Court dates, and in some cases - even criminal charges having been filed against the innocent party who's identity was stolen and misused.

However, not all unauthorized use of your personal identification information is considered fraudulent. For example: your name, address and telephone number being listed in a telephone directory. Some of your personal contact information is actually quite public, and is used everyday by individuals and businesses in order to contact you. Also, keep in mind that some information about you may be a matter of public record, such as whether you own a home, pay your real estate taxes, or have ever filed for bankruptcy. If you, yourself, have a criminal record, the public can legally access this information as well. It is not illegal for another person to access or collect information regarding you that is legally considered "public" information. However, the collection and/or use of other forms of your personal identification information could be used fraudulently and illegally. For example: Your social security number, your banking account information, and your credit card account information. This section of our handbook will briefly address what identity theft is, and offer a few examples to help you better understand the basics.

Who Does Identity Theft Happen To?

Identity theft, unfortunately, is becoming an ever-increasing problem. The Federal Trade Commission recently made the estimation that as many as 10 million Americans have had their identities stolen each year. That is an alarming statistic, which only awareness and self-protection will change any time soon. The criminals that do this are not highly trained and skilled, or even formerly educated in some cases. These are simply people who used your own lack of awareness to their advantage. That unaware and unplanned lapse in your personal security is all that a waiting, advantageous, criminal needs to seize your identity and wrack havoc with your financial assets, your life, and unfortunately; your very existence. Of the few people who have actually been able to confirm how the criminal gained access to their personal information, many have been shocked to realize it occurred by an opportunity that they - themselves - unknowingly provided for the criminal. As any slight of hand street magician will tell you: "I couldn't have gotten your wallet, had it not been accessible to me."

Some people also make the mistake of assuming since they live in a rural area or one of the lesser densely populated states that their chances of identity theft are decreased. This simply isn't the case because of today's world of telephone, mail, and Internet business. Regardless of where you are located, you have the potential to suffer from identity theft. Based on information collected by the Federal Trade Commission from January to December 2006, data collected from the Consumer Sentinel and the Identity Theft Clearinghouse show that over 685,000 consumer fraud and identity theft complaints were filed. Of those complaints, 37% were cases of identity theft. Consumers reported losses from fraud of more than $680 million dollars. The highest statistical instances happened in Arizona with 156.9 complaints per 100, 000 population. The lowest reported statistical instances of identity theft occurred in North Dakota with 24.8 complaints per 100,000 population*.

How Can I Prevent Identity Theft?

To help you better understand how you can prevent identity theft, we will examine the most common instances of identity theft. The most frequently reported form of identity theft is the fraudulent and illegal misuse of a person's credit card information without their knowledge or consent. Perhaps you're reading this and thinking to yourself, "Yes, but I am very careful to always ask for and destroy my credit card transaction receipts, and I never give my credit card information over the internet or to a telemarketer." This is smart, and will certainly decrease your chances of having your credit card information misused. However, there may be other compromising situations you have not thought about. How many times have you been at work and had to pay a bill over the phone in earshot of other people? How many times have you been forced to conduct business over your cell phone in a public place? Do you shred your junk mail before you throw it into the trash? Have you ever thrown away your junk mail at work? Have you left opened mail such as your banking statement, or credit card statement laying on the dash or seat of your automobile? Have you ever filled out an order form for you child's school or group that required your credit card information or a personal check, and sent it back to school with your child? Any of these small actions could have resulted in a compromise of your personal information. Criminals might also use your personal information to open new credit card accounts in your name. It can take a considerable amount of time for you to become aware of this illegal activity - sometimes not until it's made it's way to your credit report - the trail to the criminal has long since gone cold.

Some easy ways to boost your protection level are:
Ÿ Treat your mail and trash as if they were keys to unlock the door of your personal identification information bank. Always shred or destroy any mail you are throwing away, be careful to never throw an identifying receipt or memo note away in whole. If you do not have a shredder, invest in an inexpensive black permanent marker - block out all identifying information - and destroy document by tearing or cutting into pieces.
Ÿ Be aware and careful when conducting business over the Internet. Once on-line, you should seek further Internet protection information at: www.OnGuardOnline.gov before exchanging your personal information.
Ÿ Always select an intricate password when setting up an account. Never use your home phone number, birth date, or Social Security number. It is recommended that you make your password a combination of both letters and numbers where allowed.
Ÿ Always safeguard your purse, wallet, fanny pack, book bag, or any object that you have your personal identification information contained inside.

Another commonly reported misuse of personal identification information is the illegal and unauthorized use of a person's Social Security number. Stolen Social Security number information is most frequently used in an attempt to acquire phone and/or utilities services. However, in some situations the unauthorized misuse of a person's Social Security number has been for the illegal procurement of Government Documents such as replacement Birth Certificates, and even to claim and receive Governmental Benefits such as Social Security Supplement Income, Widow's Benefits, and even death benefits. Not as common, but still being reported is the misuse of a person's Social Security number in order for a criminal to gain legal and gainful employment. Not necessarily the most frequent instance of identity theft, but none the less havoc wrecking on one's personal financial security are electronic funds transfers being done illegally on a person's banking account. Again, maybe as you read this you're thinking to yourself: "I removed my social security number from my personal checks, it's no longer listed on my Driver's license, and I would never use any part of it as a PIN number." This is very wise, and will cut down on the potential for misuse. However, there may be other instances of potential compromise that you haven't considered. How many of your business and personal accounts use your Social Security Number as your "customer" or "account" number? Do the statements from these accounts reveal your "customer" or "account" number on them? Any of these statements have the potential to be lost or stolen in the mail. Have you called these accounts and ask that you be assigned an alternate identification number? What about your group or company insurance card? Is you Social Security Number your group or Individual identification number on that card? How many times have you used that card at medical facilities and not asked that and transaction copies be shredded or given to you? Does your child's immunization record, school identification card, or report card display their Social Security Number? Thieves will steal and misuse a child's social security number as well.

To protect your Social Security number, never carry your card on your person or in your wallet. Always ask these questions when you are requested to present your Social Security number:
Ÿ Why do you need my Social Security number?
Ÿ How will my Social Security number be used?
Ÿ How do you protect my Social Security number from being stolen?
Ÿ What will happen if I don't give you my Social Security number?

Who Can I Call If This Happens To Me?

If it's came to your attention that you are the victim of identity theft, of if your personal identification information security has became compromised, it is imperative that you act immediately! The swifter the action on your part, the less time the criminal has to cause further damage and loss. As you progress though these steps, please also remember it is imperative that you keep a record with the details of your conversations and copies of all correspondence regarding your reporting of this situation.

1. Place a Fraud Alert with the Credit Reporting Agency.
Most people make the mistake of wasting precious time by calling their creditors and financial institutions first. It is actually recommended that your first step be to place a Fraud alert with one of the three major credit-reporting agencies. A Fraud alert can help prevent an identity thief from opening any more accounts in your name. You only need to contact one of the three companies to place an alert. The company you call is required to contact the other two, which will place an alert on their versions of your report for you.
Equifax: 1-800-525-6285; P.O. Box 740241, Atlanta, GA 30374-0241
Experian: 1-888-EXPERIAN (397-3742); P.O. Box 9532, Allen, TX 75013
TransUnion: 1-800-680-7289; Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92834-6790

Once you place the fraud alert in your file, you're entitled to order free copies of your credit reports. Once you get your credit reports, review them carefully. Look for anything that seems suspicious, or anything that you cannot explain. Also verify your personal information on the report, like your Social Security number, address, name or initials, and employers. If you find fraudulent or inaccurate information, you will need to contact the Credit Reporting Agency and inquire about having this information removed. Continue to check your credit reports periodically, especially for the first year after you discover the identity theft, to make sure no new fraudulent activity has occurred.

2. Close the accounts that you know, or believe, have suffered illegal and unauthorized action or activity.
Call and speak with someone in the security or fraud department of each company. Follow up in writing, and include copies (never the originals) of supporting documents. It's important to notify credit card companies and banks in writing. Send your letters by certified mail, return receipt requested, so you can document what the company received and when. Keep a file of your correspondence and enclosures. If the identity thief has made charges or debits on your accounts, or on fraudulently opened accounts, ask the company for the forms to dispute those transactions. Once you have resolved your identity theft dispute with the company, ask for a letter stating that the company has closed the disputed accounts and has discharged the fraudulent debts. This letter is your best proof if errors relating to this account reappear on your credit report or you are contacted again about the fraudulent debt.

3. File a report with your local police.
Then, get a copy of the police report; making sure it includes the number of the report. It can help you deal with creditors who need proof of the crime. If the police are reluctant to take your report, ask to file a "Miscellaneous Incidents" report, or try another jurisdiction, like your state police. You also can check with your state Attorney General's office to find out if state law requires the police to take reports for identity theft.

4. File a complaint with the Federal Trade Commission.
By sharing your identity theft complaint with the FTC, you will provide important information that can help law enforcement officials across the nation track down identity thieves and stop them. You can call the FTC's Identity Theft Hotline, toll-free: 1-877-ID-THEFT (438-4338); TTY: 1-866-653-4261; or write Identity Theft Clearinghouse, Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580.
Be sure to call the Hotline to update your complaint if you have any additional information or problems.

(*Note: Per 100.000 unit of population estimates are based on the 2005 U.S Census population estimates (Table NST-EST2005-01-Annual Estimates of the Population for the United States and States, and for Puerto Rico: April 1, 2000 to July 1, 2005). Numbers for the District of Columbia are: Identity Theft = 842 victims and 152.9 victims per 100,000 population.)