According to the Federal Trade Commission, identity theft occurs when someone uses your personally identifying information, such as name, social security number or credit card number, without your permission, to commit fraud or other crimes. The FTC estimates that up to 10 million Americans have problems with identity theft each year. When your identity is stolen, it may take hundreds of dollars and many hours to clear up the problem.
Identity theft can happen in any number of ways. Thieves may steal your purse, your wallet or your mail. They may conduct a “phishing” scheme where they pose as a legitimate company in an effort to obtain your information. Sometimes records are stolen from businesses or institutions that hold your information, or through “skimming,” where a data storage device captures your account numbers as they are scanned. Unfortunately, some thieves are people the victim knows.
Once a thief has your information, it can be used to commit credit card fraud, utilities fraud, bank or finance fraud or government documents fraud. Thieves can use your social security number to get a job, medical services, to rent an apartment or give your information during an arrest. With each type of fraud, the thief poses as you and uses your information for their gain.
Unfortunately, many victims find out that their identity has been stolen after the damage has already been done. Usually, victims find out when they apply for credit or another type of service related to credit and they are denied for no apparent reason. Another common alert occurs when victims start receiving bills for fraudulent accounts.
Awareness is the biggest tool you have to fight identity theft. It is important to be aware of your accounts and monitor them regularly. The FTC recommends three steps to fight identity theft: deter, detect and defend.
• The first step, deter, can be practiced by safeguarding your personal information. Shred all documents containing identifying information before throwing them out. Be careful who you give your personal information to. Be aware of not clicking on links sent in unsolicited emails. Use anti-virus, firewalls and anti-spyware on your personal computer. Choose passwords that aren’t obvious and can’t be easily figured out by others. In your home, keep your personal information in a safe place.
• Detect is the second step in protecting yourself. Watch for bills that do not arrive as you expect them to or unexpected bills and phone calls for accounts you did not open. Also, being denied credit for no apparent reason may be a sign that someone is tampering with your account. Review your credit report regularly. You can get three free copies per year from www.annualcreditreport.com.
• The FTC recommends defending yourself against the damage of identity theft as soon as you suspect there is a problem by following four steps.
1. Place a fraud alert on your credit report. This warns creditors that they need to verify your identity before they issue new credit in your name. An initial alert can be placed on your report for 90 days and is appropriate for those whose wallet has been stolen or victims of a “phishing” scheme. An extended alert should be used by those who have been identity theft victims. This will stay on your credit report for seven years. With each type of alert, you will receive copies of your credit report. It is important to review your reports and make necessary corrections.
2. Close any accounts you suspect have been tampered with or opened without your consent, and dispute any charges you did not make. When establishing passwords, avoid using the last four numbers of your social security number or your mother’s maiden name. As you make changes with accounts and talk to company representatives, keep written records of all conversations, who you talked to and the date. Ask the companies to send you written verification of the changes. Once your case has been closed, keep your records in case other problems arise. Anytime you have lost personal information, even if you don’t suspect you have been a victim of identity theft, error on the side of safety and report it.
3. File a police report and obtain a copy of the report number.
4. File a complaint with the FTC. This can help them track down identity thieves. The FTC can be contacted at www.ftc.gov or 1-877-IDTHEFT.
Information taken from the FTC’s “Talking About Identity Theft: A How To Guide” can be found at: http://www.ftc.gov/bcp/edu/microsites/idtheft/downloads/TalkingAboutIDTheft.pdf
By: Candi Crossley - Jan. 27, 2009