Identity Theft: A Closer Look

Identity theft is the crime of stealing another person’s personal identifying information such as the name, address, birth date, social security number, mother’s maiden name, even a pet’s name. The thief then uses it empty your bank accounts, open up new lines of credit, apply for loans, open utility accounts, purchase cars, etc. There is really no limit as to what identity thieves can do if they get your personal information.

Identity theft is the fastest growing crime in America and as the following information will show it’s not just a online problem. Identity thieves are everywhere and no matter how cautious you think you are you are at risk. Here is some basic information that you can use to protect yourself from identity thieves.

How to protect your personal and financial information:

• Get a copy of your credit report every year and report any entries that you don’t recognize immediately.
• Do not put your phone number or your social security number on your checks.
• Read your credit card statements carefully. If there are charges that you did not make or if you don’t receive your statement in the mail report it to the lender immediately.
• When shopping online stick with companies that you know and trust. Never fill out personal or credit card information on a unsecured website. A secure website will have a https: url where as a unsecured site will show a http url.
• Never carry your social security card, birth certificate or passport with you unless you have a specific need for it.
• Always shred credit card statements and any other mail with personal information about you before you throw it in the trash. This includes bills, banking information, etc.
• If your social security number is your drivers license number go to the DMV and ask for a different number.
• Your personal information should never be given out over the phone or on the internet to someone that you do not know.
• Personal information or passwords should never be given to any company online due to you receiving a email. Banks, utility companies, stores, and companies such as Ebay and Paypal will never send you a email with a link that asks for your personal identifying information.
• Never put your address, social security number, telephone number or drivers license number on a credit card receipt.
• Ask questions! Make sure that your personal information is protected by your employer as well as doctors offices and other business’s that have access to your information.
• Only carry credit cards that you plan use that day.
• Make a list and keep it in a safe place of all of your accounts with banks and credit cards. This includes account numbers, expiration dates, customer service contact information. In case of theft you will have this information at your fingertips so that you can contact these companies immediately.
• Cancel and cut up all credit card accounts that you do not use and if you feel that you must keep them store them in a safe place with your other financial information.
• Never use your mothers maiden name, your children’s name or your pets name as passwords. The best passwords to use are random letters and number combinations, but unfortunately these can be hard to remember. One method is to think of an uncommon phrase that is easy for you to remember, and then using the first letter of each word: for example, if you can remember Snow White and the seven dwarves then you can also remember SWat7d.
• If your mailbox is not secure, mail payments from the post office and pick up checks at the bank.
• If you are not interested in receiving credit card and insurance offers in the mail you can put a stop to it by calling this toll free number. 1-888-5-OPTOUT This is a automated service run by the four main credit bureaus. By calling this number and following the instructions you can opt out of pre-screened mailings from all four bureaus.

What to do if you are a victim of identity theft:

As a Credit Counselor I have spoken to a lot of people who have been victims of identity theft. Many of these people clearly did not handle the situation properly and because of that suffered the consequences for years to come. If this happens to you there are certain steps that you must follow or this problem will follow you for a long, long time. Here’s what to do:

First, understand that you must record every move that you make. Get a notebook and write down detailed notes regarding every phone call that you make and every letter that you send. Follow up every phone call with a letter. You will need the names of the employees that you speak to, the date and time of the conversation as well as what was discussed and the outcome of each conversation. You need to send every piece of mail regarding this situation registered return receipt mail via USPS. Trust me, this is all very necessary for you to protect yourself. You may need to prove later that certain conversations took place or that certain steps were taken.

Call the police. Unfortunately, some police departments appear to be less than enthusiastic about acting on identity theft crimes so demand that a police report be made out and make sure that you get a copy of the report. List every account that you have on that report because many creditors will require a copy of a police report before they will take action.

Contact every financial institution and creditor that you do business with both by phone and by mail and then let know that your name and accounts have been used without your permission. Ask for new savings and checking accounts and new credit cards. Change all of your passwords. Stop payment on all checks and reissue checks to legitimate creditors with your new checks. Ask your bank to notify its check verification company to stop giving approval for any of your checks from your old account. Watch your statements for any fraudulent activity. Report unauthorized activity immediately.

Remember, The Fair Credit Billing Act (FCBA) is a federal law that limits a consumer’s responsibility for fraudulent charges to $50.

Contact the Federal Trade Commission (FTC) and fill out a report. The FTC wants to know about these crimes and they work with law enforcement agencies all across the country. The FTC will also provide you with more information and government agencies who will help you to overcome this problem and get back on your feet.

Federal Trade Commission

Consumer Response Center
600 Pennsylvania Avenue, N.W.
Washington, DC 20580
1-877-IDTHEFT
www.consumer.gov/idtheft/

Contact Equifax, Experion and Trans Union and report the crime to their fraud departments. Ask all three of these companies to place a fraud alert on your credit report. This will help to prevent anyone from opening up new credit accounts in your name. As a victim of identity theft you are entitled to a free copy of your credit report. Ask all three of these companies for a copy of your report every three months so that you can monitor the activity on the reports.

Equifax

1-800-525-6285
www.equifax.com

Experian

1-888-397-3742
www.experian.com

Trans Union

1-800-680-7289
www.transunion.com

Contact all of your utility companies and let them know what has happened so that they can be on alert for anyone opening up new services in your name. If you have any trouble you can contact your state Public Utility Commission.

Contact the Division of Motor Vehicles. Many times identity thieves try to get drivers licenses and state IDs in your name to use as ID for fraudulent transactions.

If you have investments or brokerage accounts you need to contact your account manager and report this crime to Securities and Exchange Commission. 1-800-SEC-0330. (www.sec.gov)

This all may seem tedious and yes, it is a lot of work but it is all necessary. I have seen a lot of lives turned upside down by identity theft. This crime can do a lot more than ruin your credit it will feel like it has ruined your life. Follow through with all of these steps and then monitor your credit reports every six months for the next few years.