Every where we look we now see articles on Identity Theft, whether it’s in the local newspaper or on T.V advertisements or on your banks web site.
Identity Theft is here, it’s happening and its America’s fastest growing crime – don’t become a victim!!!!!
Identity theft is a complex and detailed subject, and I am sure that we could easily write a 1000 page novel on all the different areas and aspects, so in this issue, we are going to look briefly at identity theft and what you can do about it, along with some important web site links for you to search at your leisure.
According to studies conducted it was reported that:
Approximately 8.7 Million people were victims of identity theft last year
Total impact of this crime is at $56.6 Billion.
A study by Javelin Strategy & Research of Pleasanton, CA, revealed that identity thieves ring up higher fraud bills for Hispanics than for Asians black or Caucasians.
Findings taken from different studies by Javelin Strategy & Research and ITRC reveal:
That over a period of years, victims can spend an average of 40 hours recovering from identity theft.
It is taking for longer than before to clear their records and recover from identity theft.
Victims spend an average from $422 to $1,400 in out of pocket expenses recovering from identity theft.
The FTC Annual Report for 2002 identified the top 10 locations for the number of victims of identity theft as:
Washington DC
California
Arizona
Nevada
Texas
Florida
New York
Washington
Maryland
Oregon
Identity theft is a Federal Crime under Federal Law:
18 U.S.C 1028
“The Identity Theft and Assumption Deterrence Act of 1998”.
Identity Theft is a serious crime, one in which you, the victim, will spend years and possible thousands of dollars trying to correct.
In addition, as a victim you may be refused credit, not be able to get a mortgage or rental, possibly lose employment opportunities and in a worst-case scenario, be arrested for crimes you didn’t commit.
Identity theft occurs when someone uses your name, address, Social Security Number (SSN), bank and credit card accounts, drivers license or any other identifying information without your knowledge to commit fraud and/or other crimes.
This is usually for financial gain, however there is an increase in “Cloning”- Where information about a person, is often sold on the black market, either to illegal immigrants or to people who are trying to “re-start” their lives and avoid arrest.
Imposters may also search death certificates and find a person who would match the imposter’s age, a copy of the birth certificate can be purchased (depending on state law), and the imposter assumes the deceased identity.
Identity Theft occurs in many different and ingenious ways, and they come up with more and more ideas every week, lets take a look at some of them:
“Dumpster Diving”
This method is exactly as it sounds - going through your trash searching for personal information that you have thrown away. Remember that credit card receipt that you throw away in the trash bin at the Mall? Don’t.
Always completely destroy any thing that contains ANY personal information about yourself, the most effective method is by shredding.
“Skimming”
Stealing Credit and Debit Card Account Numbers by using special information storage devices.
“Pretexting”
Obtaining information directly from you by phoning you and posing as an “official” asking you personal questions.
“Phishing”
This is one of the most common types of identity theft and is basically the same as “Pretexting”, except they are asking for the information through e-mail.
Think about all those emails you get from banks that you don’t actually have an account with, but they are still asking you to confirm your account details!!!!
From Your Mail Box
Stealing your mail, including bank and credit card statement, new checks, credit cards offers and other personal information.
If you can, pick new checks up directly from the bank, don’t put personal information in your out going mail box and remove new mail quickly or buy a mail box that locks.
They may also use the “change of address form” to divert your mail to a different address/location
Stealing Directly From You & Your Home
Stealing information from your purse or wallet, they don’t have to actually take the credit card they can just copy the number and you wouldn’t know until it was used and too late.
Stealing your user name and passwords.
Stealing personal information that they find in your home, they don’t necessarily have to break in, but how about all the people that come into your home for various reasons – baby sitters, repair men, the man who does the yard and even the friendly neighbor????
From Businesses and other institutions
Stealing records or information while they’re on the job
Bribing an employee who has access to these records
Hacking into these records
Conning information out of employees
Posing as a landlord, employer or someone else who would have legal rights to access your information
Obtaining your credit report by abusing employer’s authorized access to them.
Misc:
Obtaining a copy of your credit report by fraudulent means.
Using photo phones to take a picture of credit card at checkouts.
What others do you know about??????? Let us know about at education@debtliquidationservices.com
Only 9% of fraud cases cited in the survey by Javelin Strategy & Research, stemmed from use of the Internet, computer hackers, Phishing, spy ware or viruses.
11% of people uncovered the fraud by checking credit reports or by using credit-monitoring services.
You have to constantly be vigilant and monitor all your personal information:
Monitor your balances on your bank and credit card accounts
Investigate if you stop receiving bills
If you receive credit cards that you have not applied for
If you begin to receive collection calls from creditors
If you are denied credit for no apparent reason
Reviewing all 3 credit reports, on a regular basis, will help you identify any unexpected changes
To obtain a free copy of your credit report go to www.annualcreditreport.com or by contacting the following 3 credit bureaus and requesting a free copy:
Equifax - www.equifax.com
call: 800-685-1111 or write:
P.O. Box 740241, Atlanta, GA 30374-0241
Experian - www.experian.com
call: 888-EXPERIAN (397-3742) or write:
P.O. Box 2002, Allen TX 75013
Trans Union - www.transunion.com
call: 800-888-4213 or write:
P.O. Box 1000, Chester, PA 19022
If you have been a victim of ID Theft, you must report it to the Police.
Keep accurate records
In section 11 there is a “Track Your Course of Action” Worksheet, which may be helpful for you to use in order to track that you have notified with dates etc.
Use certified mail.
Keep copies of all your correspondence and forms that you send.
Keep the originals and all supporting documents, police reports, letter to creditors etc.
Begin a filing system for access to your documents, it doesn’t have to be any thing expensive, a cardboard box will work. Make sure that it is protected for any disasters: hurricane, flood etc
Once your case is resolved/closed, still keep all your documentation, problems may still occur years from now.
Report it the Police
You MUST report identity theft to the police and obtain a copy of the police report; you will need this copy of this report as proof.
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 may also want to check with your states Attorney Generals office to find out if state law requires the police to take reports of ID Theft. Visit www.naag.org for a list of state Attorney Generals.
As a victim of identity theft you have protection under the law, but only if you report it. If there’s no police report, there’s no protection, – simple as that.
If you do not make a report, it could be viewed later that you knew about the fraudulent activity and did nothing to stop it.
Notify your financial institutions
One best method is to close all your current accounts.
Notify all your financial institutions by calling and speaking with someone in the fraud and security department, and follow up with a registered letter, keeping a copy for your records.
They will also want a copy of the police report.
Advise all 3 credit bureaus
Notify all the credit bureaus, by a phone call and follow up with a registered letter, keeping a copy for your records.
They will also want a copy of the police report.
Set up fraud alerts
Let your creditors know that fraud has been associated with your credit report.
As a result, creditors may confirm that they're dealing with you and not an imposter before granting credit or other services.
Complete victim statements
Tells creditors to contact you before granting credit or other services.
Victim statements may cause delays in getting credit while the creditor tries to contact you. If you have a cell phone, you may want to include that number in your statement.
The following charts describe the current fraud alert and victim statement placement procedures of the credit bureaus.
Please note: TransUnion and Equifax use a combined fraud alert and victim statement. Be sure to confirm these procedures when you contact the credit bureaus as they may change.
INITIAL ALERT
|
Credit Bureau |
Period of Initial Coverage |
Can You Request an Alert Online? |
Is a Free Credit Report Provided? |
|
TransUnion |
12 Months |
No |
Yes |
|
Equifax |
6 Months |
No |
Yes |
|
Experian |
3 Month Fraud Alert |
Yes |
Yes, can be provided online |
RENEWALS
|
Credit Bureau |
Period of Renewal Coverage |
Is a Free Credit Report Provided? |
Number of Renewals Allowed |
|
TransUnion |
12 Months or 7 Years |
Yes |
Unlimited |
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Equifax |
6 Months or 7 Years |
Yes |
Unlimited |
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Experian |
3 Month Fraud Alert or 7 Year Victim Statement |
Yes, provided online |
Unlimited |
Set up a Credit Freeze
You formally notify one of the major credit-reporting companies that you want to freeze your credit file; this blocks access to it by everyone except existing creditors.
You are allocated a personal identification number (PIN), which you can use to lift the freeze, either temporarily for everyone or for an individual creditor.
It should be noted that lifting a freeze might take several days.
There will be some inconvenience, and you may have to pay fees ranging from $10 to $15 in many cases.
If you have a credit freeze in place obtaining new credit and in particular getting Instant-credit will be harder to take advantage of, including obtaining a car loan or mortgage refinancing.
This is not available in all states, but is available the following states:
Connecticut
Maine
Vermont
North Carolina
Illinois
Washington
Nevada
California
Texas
Louisiana
New Jersey
File a complaint with the Federal Trade Commission (F.T.C)
The FTC, in conjunction with banks, credit grantors and consumer advocates, developed the ID Theft Affidavit, a copy of which can be found at www.consumer.gov/idtheft/federallaws.html to help you close unauthorized accounts and get rid of debts wrongfully attributed to your name.
If you don't have a police report or any paperwork from creditors, send the completed ID Theft Affidavit to the three major credit bureaus. They will use it to start the dispute investigation process.
You also can send the ID Theft Affidavit to creditors. Not all companies accept the ID Theft Affidavit. They may require you to use their forms instead. Check first.
To make certain that you do not become responsible for any debts incurred by an identity thief, you must prove to each of the companies where accounts were opened or used in your name that you didn’t create the debt.
A group of credit grantors, consumer advocates, and attorneys at the Federal Trade Commission (FTC) developed an ID Theft Affidavit to make it easier for fraud victims to report information. While many companies accept this affidavit, others require that you submit more or different forms. Before you send the affidavit, contact each company to find out if they accept it.
It will be necessary to provide the information in this affidavit anywhere a new account was opened in your name. The information will enable the companies to investigate the fraud and decide the outcome of your claim. If someone made unauthorized charges to an existing account, call the company for instructions.
This affidavit has two parts:
Part One — the ID Theft Affidavit — is where you report general information about yourself and the theft.
Part Two — the Fraudulent Account Statement — is where you describe the fraudulent account(s) opened in your name.
Use a separate Fraudulent Account Statement for each company you need to write to.
When you send the affidavit to the companies, attach copies (NOT originals) of any supporting documents (for example, driver’s license or police report). Before submitting your affidavit, review the disputed account(s) with family members or friends who may have information about the account(s) or access to them.
Complete this affidavit as soon as possible. Many creditors ask that you send it within two weeks. Delays on your part could slow the investigation.
Be as accurate and complete as possible. You may choose not to provide some of the information requested. However, incorrect or incomplete information will slow the process of investigating your claim and absolving the debt. Print clearly.
When you have finished completing the affidavit, mail a copy to each creditor, bank, or company that provided the thief with the unauthorized credit, goods, or services you describe.
Attach a copy of the Fraudulent Account Statement with information only on accounts opened at the institution to which you are sending the packet, as well as any other supporting documentation you are able to provide.
Send the appropriate documents to each company by certified mail, return receipt requested, so you can prove that it was received. The companies will review your claim and send you a written response telling you the outcome of their investigation. Keep a copy of everything you submit.
If you are unable to complete the affidavit, a legal guardian or someone with power of attorney may complete it for you. Except as noted, only the company to process your affidavit, investigate the events will use the information you provide you report, and help stop further fraud. If this affidavit is requested in a lawsuit, the company might have to provide it to the requesting party.
Completing this affidavit does not guarantee that the identity thief will be prosecuted or that the debt will be cleared.
If you haven’t already done so, report the fraud passwords. Avoid using easily available to the following organizations: information like your mother’s maiden name, your birth date, and the last four digits of your social security number.
Don’t forget to notify other important organizations:
In addition to the police, financial institutions and credit bureaus, you need to notify the following organizations:
Your phone company (both home phone and cell providers)
Internet provider(s)
Utilities provider(s)
The US mail, this will help prevent any fraudulent re direction of your mail
Driving License
I.R.S
Social Security
As with any crime, you can't guarantee that you will never be a victim, but you can minimize your risk.
By managing your personal information wisely, cautiously and with an awareness of the issue, you can help guard against identity theft.
Don't give out personal information on the phone, through the mail or over the Internet unless you've initiated the contact or are sure you know whom you're dealing with. Identity thieves may pose as representatives of banks, Internet service providers (ISPs) and even government agencies to get you to reveal your SSN, mother's maiden name, account numbers, and other identifying information. Before you share any personal information, confirm that you are dealing with a legitimate organization. You can check the organization's Web site as many companies post scam alerts when their name is used improperly, or you can call customer service using the number listed on your account statement or in the telephone book.
Don't carry your SSN card; leave it in a secure place.
Secure personal information in your home, especially if you have roommates, employ outside help or are having service work done in your home.
Guard your mail and trash from theft:
Deposit outgoing mail in post office collection boxes or at your local post office, rather than in an unsecured mailbox. Promptly remove mail from your mailbox. If you're planning to be away from home and can't pick up your mail, call the U.S. Postal Service at 1-800-275-8777 to request a vacation hold. The Postal Service will hold your mail at your local post office until you can pick it up or are home to receive it.
To thwart an identity thief who may pick through your trash or recycling bins to capture your personal information, tear or shred your charge receipts, copies of credit applications, insurance forms, physician statements, checks and bank statements, expired charge cards that you're discarding, and credit offers you get in the mail. If you do not use the pre-screened credit card offers you receive in the mail, you can opt out by calling 1-888-5-OPTOUT (1-888-567- 8688). Please note that you will be asked for your Social Security number in order for the credit bureaus to identify your file so that they can remove you from their lists and you still may receive some credit offers because some companies use different lists from the credit bureaus’ lists.
Carry only the identification information and the number of credit and debit cards that you'll actually need.
Place passwords on your credit card, bank and phone accounts. Avoid using easily available information like your mother's maiden name, your birth date, the last four digits of your SSN or your phone number, or a series of consecutive numbers. When opening new accounts, you may find that many businesses still have a line on their applications for your mother's maiden name. Use a password instead
Ask about information security procedures in your workplace or at businesses, doctor's offices or other institutions that collect personally identifying information from you. Find out who has access to your personal information and verify that it is handled securely. Ask about the disposal procedures for those records as well. Find out if your information will be shared with anyone else. If so, ask if you can keep your information confidential.
Give your SSN only when absolutely necessary. Ask to use other types of identifiers when possible. If your state uses your SSN as your driver's license number, ask to substitute another number. Do the same if your health insurance company uses your SSN as your account number
Pay attention to your billing cycles. Follow up with creditors if your bills don't arrive on time. A missing bill could mean an identity thief has taken over your account and changed your billing address to cover his tracks
Be wary of promotional scams. Identity thieves may use phony offers to get you to give them your personal information.
Keep your purse or wallet in a safe place at work as well as any copies you may keep of administrative forms that contain your sensitive personal information.
Cancel all unused credit accounts
When ordering new checks, pick them up at the bank, rather than having them sent to your home mailbox.
This subject is very personal but when the imposter is a relative or someone you know, this magnifies the problem dramatically.
How do I prosecute my own father or sister?
What sort of mother am I if I have my own child arrested?
What will family and friends think of me if I do that?
Also, if the imposter is an ex-spouse, then the crime borders on harassment and abuse.
Difficult decisions, how could they have done this to me? You feel betrayed, embarrassed, violated and abused, but what can you do about it?
You have 3 choices:
Paying the debt yourself
Can you afford to do this?
Will the imposter commit the crime again?
Ask the creditors, to see if you can resolve the situation without police involvement.
However, the creditors will want their money back and due to people falsely claiming identity theft, they will expect to see a police report.
Unfortunately, without an official police report creditors will not believe it is a justified case of identity theft.
Report the identity theft to the police
As a victim of identity theft you have the protection under the law if you make a police report, if there is no police report you do not have that protection.
If you do not make a report, it could be viewed later that you knew about the fraudulent activity and you did nothing to stop it.
This is a fairly new crime and only accounts for approximately 5% of all cases reported.
The following is a brief overview of information that is currently available.
This crime occurs when another person, for personal gain, has used a child’s identity. The imposter may or may not be known to the child or the child’s family.
Just because you receive a pre-approved credit card application though the mail in the child’s name is not necessarily evidence of identity theft, but you should run a credit report check to make sure.
Child identity theft is broken into the 3 categories:
Financial
According to the Identity Theft Resource Center in San Diego, this is the most common reason reported.
When the imposter uses the child’s identity for financial gain, mainly in obtaining credit cards, bank fraud, phone and utilities.
Criminal
This usually entails the child’s identity being used to obtain a drivers license.
Cloning
Information about the child is often sold on the black market, either to illegal immigrants or to people who are trying to “re-start” their lives and avoid arrest.
Imposters may also search death certificates and find a person who would match the imposter’s age, a copy of the birth certificate can be purchased (depending on state law) and the imposter assumes the deceased identity.
There are many web sites that can you give you the information and guidance that you need, including web sites of financial institutions and creditors.
Identity Theft Resource Center
Federal Trade Commission (F.T.C)
www.ftc.gov/os/statues/031224fcra.pdf /
Social Security Administration
National Consumers' League (National Fraud Information Center)
www.nclnet.org/privacy/idtheft/index.htm
US Postal Inspection Services
www.usps.com/postalinspectors/
US Department of Justice
www.usdoj.gov/criminal/fraud/idtheft.html
Credit Reports
Make sure that you keep complete documented records of all your correspondence, below will help you to records organizations, phone numbers etc:
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Organization |
Phone Number |
Date Contacted |
Person Contacted |
Comments |
|
Equifax |
800 525 6285 |
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Experian |
888 397 3742 |
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TransUnion |
800 680 7289 |
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Do you know how you can reduce the risk of becoming a victim of identity theft?
Take this simple quiz, and see how you score:
|
YES |
NO |
REASON: If you lose your ATM or credit card, identity thieves or other criminals can have instant access t your bank or credit card account.
|
YES |
NO |
REASON: If your wallet or purse is lost or stolen, and you’re carrying fewer cards, you’ll have to make fewer calls to banks and credit-card companies to report the losses, and the odds of fraudulent charges in our name will be lower.
|
YES |
NO |
REASON: Someone who gets your credit-card number and expiration date doesn’t need the actual card to charge purchases to your account. If you don’t look closely at your credit-card statement each month, you might not have any recourse if fraudulent transactions go through and you don’t dispute them promptly with your credit card company. As soon as you see unauthorized charges on your statement, contact the credit card company immediately to report them.
|
YES |
NO |
REASON: Some identity thieves aren’t shy about “dumpster diving” – literally climbing into dumpsters or rooting through trash bins to look for identifying information that someone threw out. Buying and using a shredder on your home or office is an inexpensive way to frustrate dumpster divers and protect your personal data.
|
YES |
NO |
REASON: If you throw out the documents without tearing them up or shredding them, “dumpster divers” can send them back to the credit-card company, pretending to be you but saying that your address has changed. If they can use the account from a new location, you may not know the account’s being used in your name until see it on the credit report (see below).
|
YES |
NO |
REASON: Any consumer can request one free copy of his or her credit report per year. Reviewing your credit report can help you find out if someone has opened unauthorized financial documents, or taken our unauthorized loans, in your name.
Contact the three major credit bureaus to request a copy.
|
YES |
NO |
REASON: Some identity thieves may try to take over your credit card and bank accounts, and delay your discovery of their criminal activities, by having your mail diverted to a new address where they can go through it without your knowledge. Your local post office should have on file any change-of-address cards, and can respond if you find that someone is improperly diverting your mail.
|
YES YES YES YES |
NO NO NO NO |
REASON: Identity theft is a crime under federal law, and under the laws of more than 44 states, that carries serious penalties including imprisonments and fines. To help laws enforcement in investigating and prosecuting identity theft, the Federal Trade Commission (FTC) maintain a national database of complaints by identity theft victims.
The FTC through a tool-free hotline (1-877-ID-THEFT), can also help you decide what steps to take in trying to remedy the situation and restore your good name and credit. Credit bureaus should also be notified so that they can flag your credit report. Local police, by taking a report and providing you with a copy, can help you show creditors that an identity thief has been conducting certain transactions in your name and without your permission.
If you checked even two or Three “NO” boxes, it means that you need to take more of the precautions described in this quiz.
Remember that identify thieves, unlike robbers or fraudsters, don’t have to have any personal contact with you in order to commit their crimes.
The more you do protect your personal information, the lower the odds that you’ll become a victim of identity theft.