Identity Theft

Identity theft is a federal crime that occurs when a person's identification, including name, social security number, or any other account number is used or transferred by another person for unlawful purposes.

Identity theft is a growing problem in the United States, with complaints rising 73 percent from 2001 to 2002.

In 1992, TransUnion received around 35,000 calls about identity theft; in 2001 calls reached over one million.

The FBI estimates that 700,000 to 1.1 million Americans are victims of identity theft.

On average, victims spend 175 plus hours and $1,000 in out-of-pocket expenses to clear their names.

The most common types of identity theft complaints received by the Federal Trade Commission in 2000 were:

• Credit card fraud
• Unauthorized phone or utility services
• Bank fraud
• Fraudulent loans
• Government documents

Some Interesting Facts:

• According to the National Center of Victims of Crime, around 19% of their survey respondents who reported identity theft had a personal relationship with the suspect. They were a family member, roommate, co-habitant, neighbor or a co-worker/employer/employee.
• In 2002, the FBI broke what may be the largest identity theft case in U.S. history. A help-desk employee of a third-party credit agency was able to access confidential information about the company's corporate clients. Authorities believe that this employee and three others used password and subscriber codes for auto dealerships, banks, health care facilities and public utilities to obtain credit histories of nearly 30,000 individuals, which they sold in turn for $60 per name. Total losses from this case are estimated at $2.7 million.
• The State of California has barred Allstate Insurance from using its online Department of Motor Vehicles database. The state does not accuse Allstate of identity theft, but does maintain that some Allstate employees were not following the DMV's privacy policy. The policy stipulates that employees must use a unique password and sign confidentiality papers. Employees further breached company policy by looking up DMV files on family and friends.

How Identity Theft is Committed

• "Dumpster Diving" -going through personal or business trash looking for anything with personal information.
• "Shoulder Surfing"- watching a victim punch in a PIN number at an ATM or enter a telephone credit-card number.
• "Y2K trick" - Tricking a victim over the phone to divulge personal identifying information or financial information.
• "Pretext" - Posing as someone who legitimately and legally needs information about a victim, such as a landlord or employer.
• Pickpocketing.
• Over the Internet by gaining access to databases containing dates of birth, social security numbers and mother's maiden names.
• Employees with access to accounts or credit card numbers who then sell or uses this information.

Identity theft often goes undetected. Within a month of being committed, half of the crimes still remain unnoticed. One in ten stays hidden for two or more years.

• Identity thieves change the address on an account so the victim doesn't receive the bills. They will often pay the minimum balances on accounts they have opened, so as to avoid calling attention to the account and having it cut off. They may even use the identities of children or deceased persons so that the crime is less likely noticed.

How to Protect Yourself

Shred all pre-approved credit card offers

• If you decide not to take advantage of an offer, shred or tear it into very small pieces before throwing it away.
• Shred any papers with confidential information in them; any account number may be used in identity theft. This includes receipts, canceled checks, bank statements and expired charge cards, medical bills and insurance documents.
• If you don't want to receive pre-approved credit card offers, call 1-888-5-OPT-OUT (1-888-567-8688) to remove your name from major credit bureau lists.

Limit the amount of cards in your wallet

• Since many identity thefts are traced back to a stolen purse or wallet, carry as few cards with identification and personal information as possible.
• Don't carry your social security card in your wallet. Keep it in a secure location.
• Bring only one credit card with you when you shop. Place cards in different places to avoid losing them if your wallet or purse is stolen.

Protect personal information

• Experts suggest that you don't print your Social Security number, driver's license number, phone number or date of birth on checks.
• Be wary of any mail, telephone or Internet requests for information.
• Unless you have initiated the contact with the business, don't give out any confidential information such as a credit card number, Social Security number, PIN, birth date or your mother's maiden name.
• Be careful with e-mails that appear to be from a legitimate company asking you to enter information at a linked web site; they may be phony.
• Only a few institutions such as businesses granting you credit, employers filling out tax forms or government agencies have legitimate reasons asking for your Social Security number. If a business refuses to serve you if you don't provide the number, go elsewhere.

Check all Statements

• Check banking and credit statements as soon as you receive them. Look for unexplained charges or activity.
• Keep track of when your bill arrives each month and if it is late, call the company and check to see if any changes have been made to your account.

Your Credit Report

Identity thieves will try to hide their crimes for as long as possible so that they can access more money. To stop identity theft earlier, check your credit reports regularly.

• You are entitled to one free credit report per year from each of the credit reporting agencies. Go there now by clicking here. 
• Your credit report contains information about where you live and work, credit accounts opened in your name, home ownership, any liens charged against your home, how you pay your bills and if you have been sued, arrested or filed for bankruptcy.

How to Read your Credit Report

• Check to see if you are aware of all the accounts listed and that the balances are what you expect them to be.
• Look for suspicious inquiries into who has requested your credit report.
• Make sure no inquiries have been made about loans or leases you didn't apply for.
• Check for addresses where you have never lived.
• Check for typos in your social security number.

If you are the Victim of Identity Theft

Contact the fraud departments of each of three major credit bureaus:

• Experian:1-888-397-3742
• TransUnion:1-800-680-7289
• Equifax:1-800-525-6285

Have all three agencies flag your accounts with a "fraud alert." Ask how long the alert will remain on your report, and how to extend the time, if needed.

Ask that all creditors contact you at a phone number you provide to verify all future applications.

Add a "victim's statement" to the report. Include your name, the problem, and a telephone number where you may be reached.

Have a copy of your credit report sent to you from each credit bureau. They will help you trace where and when any fraud occurred in your accounts.

Order new copies of your credit reports every few months to verify your corrections and changes.

• Make sure no new fraudulent activity has been added to your report.

Identity thieves often strike the same accounts again and again. It is very important to continue to monitor your credit reports very closely for a while after the initial crime. Even with a "fraud alert," thieves may still find ways to open new accounts. Ask the credit bureaus if they will give free reports every few months.

Credit Card Companies

• If your credit card has been used, contact the security department of that credit card company.
• Close involved accounts registered as "closed at customer request" rather than stolen or lost.
• Aquire new account numbers, and protect the accounts with passwords.
• Send a follow up letter giving the date, the name of the person who helped you, and what actions were taken to each credit company involved.

Document your Actions

Many times the convicted thief will be ordered to pay restitution to the victim for any financial loss, including lost wages.

• Keep copies of correspondence and documents related to the theft.
• Log all telephone calls, including the date and time of your call and the name and title of the person who assisted you.
• Write letters to confirm all phone conversations. Include the date, the name of the person you spoke with, and what actions were taken.
• Send documents and letters "Return Receipt Requested" and keep the postal receipt with your copy.
• Use the ID Theft Affidavit to avoid having to complete different forms. This form can assist you in disputing inaccurate information that appears on your credit report as a result of fraud. The form is available at http://www.consumer.gov/idtheft. Keep copies of these affidavits.

Make a Police Report

File a report with your local law enforcement agency as soon possible. You may have to file an additional report if the theft occurred outside their jurisdiction. A police report accomplishes two things: First, the police can start to investigate the crime. Second, you will need the case number to help you straighten out your account. Give this information to all the companies you contact about your accounts.

Other Agencies

• Contact your bank. Cancel all checking and savings accounts and open new ones. Stop payment on outstanding checks. Obtain a new ATM card, account number and PIN or password.

Contact these federal agencies that specialize in identity theft:

• Federal Trade Commission (FTC) Theft Hot Line:1-877-IDTHEFT (483-4338)
• Social Security Administration:1-800-269-0271
  • Call if your number has been used. Ask for an earnings statement and check if your work history is listed correctly.
• U.S. Postal Inspectors:1-800-372-8347
  • This agency is helpful if you have fraudulent utility bills or apartment leases on your credit report.

Telephone Numbers and Addresses

• Equifax:P.O. Box 740241Atlanta, GA 30374
  www.equifax.com
  To Report Fraud: 1-800-525-6285
  To Request Credit Report:1-888-685-1111
• Experian:P.O. Box 2002 Allen, TX 75013
  www.experian.com
  To Report Fraud and Request Credit Report:1-800-397-3742
• TransUnion:P.O. Box 1000 Chester, PA 19022
  www.transunion.com
  To Report Fraud:1-800-680-7289
  To Request Credit Report:1-800-916-8800
• Federal Trade Commission Identity Theft Clearinghouse:600 Pennsylvania Avenue NW Washington, DC 20580
  To Report fraud:1-877-438-4338
• Social Security Administration:P.O. Box 17768 Baltimore, MD 21235
  www.ssa.gov
  Social Security Fraud Hot Line:1-800-269-0271
• U.S. Postal Inspection Service:475 L'Enfant Plaza SW Washington, DC 20260
  www.usps.gov/postalinspectors