Identity Theft

Statistics

• Over a three-year period the US Secret Service has noticed an increase in the number of cases considered directly associated with identity theft
• In 1997 the cost to individuals and financial institutions was estimated to be $745 million
• Beyond the financial damages to individuals there is also the damage these crimes do to the credit of the victims
• In 2001 there were 49,711 complaints on internet fraud reported to the FBI, this does not include reports/complaints made locally

What could this mean to you?

• A call from your bank reference returned checks on your account
• A call from a collection agency demanding payment for merchandise you never ordered
• Merchants refusing to accept your checks (even if your bank account is in good standing, because your credit report is bad)
• A call from a merchant about your bad check and wanting to know what you are going to do about it
• False debts and liens… your real estate closing is interrupted J
• ob interviews are mysteriously cancelled
• Arrest and incarceration until “your true identity” is proven
• It may take years to correct this mess

How they got your information – common methods

• Mail Theft
• New checks stolen out of you mail box
• Your credit card bills stolen out of your mail box
• They notice the flag up on your mail box and they steal your outgoing bills
• You gave your personal information to them
• You entered a contest like at the state fair and filled in a lot of your personal information
• Sweepstakes entries and they sell your information to other people
• Waiters or cashiers keep you card, skim your card, or keep your number to use later
• Court records or public information sources
• Surveys On-line
• Someone illegally obtained your credit history report
• Someone posed as your landlord and ran a credit check on you
• Posed as a prospective employer
• Posed as a lender
• Residential or Auto Burglaries
• Many burglars now spend time going through desk and filing cabinets to get your personal information (account#’s, PIN’s, DOB’s, credit card #’s…)
• Many burglars also spend time going through your glove box, checking your visors, and checking consoles for your personal information
• Pickpocketing
• Numerous other methods, these are some of the most common

Tips to try to prevent becoming a victim

General Tips

• Print your name on your checks differently than you sign (ie. sign your full name and only print your initials on the checks)
• Use a PO box on the checks, you can give them your street address if a business needs that information
• NEVER! Print your Social Security Number on your checks
• Be aware of pickpockets and thieves and take basic preventative steps to avoid having your information stolen
• Make sure you do not have your SS# as your driver’s license number
• Do not include private information in any survey you take
• Be wary of entering a contest… especially a contest connected to sales (this information can be used and/or sold)
• Do not give your information over the phone unless you called them and you know who you are giving the information to
• Photocopy both sides of all credit cards, licenses, and other important documents in your wallet and purse and keep this information in a couple of safe locations (not in your car)
• Don’t throw papers with your information out, shred these document first and burn them if possible
• Write letters to the companies you deal with asking that they do not share, trade, or sell your personal information
• Never leave credit card receipts at businesses
• Never put your PINs (personal identification numbers) where a thief can find them if your wallet or purse is lost or stolen, or if your home is burglarized
• Review a copy of your personal earnings and benefit estimate statement from the Social Security Administration every three years
• CAREFULLY review your bank and credit card statements for errors
• If you order preprinted checks, it is best if you can pick these up at your bank, so they can not be stolen out of your mailbox
• Do not carry credit cards you are not going to need, leave such credit cards, your social security card, birth certificate and passport at home in a safe place unless you truly will need them
• Destroy any expired credit cards, credit card receipts, ATM receipts, extra bank deposit slips, checks from closed accounts, old bank statements, cancelled checks, and pre-approved credit card applications…
• Check your credit report annually
• Be aware that this type of crime happens all the time and do not let your guard down!

On-line Tips

• Never open any email if you do not know who it is from
• Always have a virus protection program running on your computer
• Consider using a firewall
• Do not leave your computer hooked to the internet
• Do not give any information about yourself to anyone you chat with or who may send you an instant message (this includes your name, city you live in, etc.)
• Do not have a profile on-line that you put any personal information on (name, city you live in, age…)
• While shopping on-line, only buy from a secure site and look at the site’s privacy policy about sharing your information
• If you don’t feel safe using a site’s server, even if it is secure, call in your order
• Do not include personal information in email either, it is not safe
• Be careful where and how you do business on the internet, 40% to 45% of fraud complaints on the internet involve internet auction sites
• Again! Be aware that identity theft and fraud happen on the computer all the time and don’t let your guard down

What to do if you are a victim

• RULE #1 – ACT QUICKLY! MINIMIZE DAMAGE!
• First – Contact the police
  1. make a police incident report
  2. include any items that you are missing including checks, ID, DL, SS cards, etc.
  3. to make the report you should contact the agency where the items were taken from you or where the items were used
• When you do make a report with the police note the agency, the name of the officer taking the report and the case/incident number for future reference
• The next day or two call or go back by the agency and try to get a copy of the incident report, then run several copies of this report (you will need them)
• While doing these things always be patient, persistent, professional, and polite (this will normally get a lot more done)
• If checks are stolen or your checking account used
  1. close the affected accounts
  2. ask that your affected accounts be “flagged” for possible unauthorized activity” and that a victim’s statement be attached
  3. you could also place a stop payment on the check(s) that were stolen
  4. expect to be asked to complete an “Affidavit(s) of Forgery” and probably provide a handwriting exemplar
  5. Open a new checking account with new checks
  6. Report the circumstances to local DA’s office via letter, so that the “bogus check division” can be alerted
  7. Keep a log of all contacts made from merchants, financial institutions, collection agencies, law enforcement agencies, etc, including the date, time, telephone number, address, person you spoke with, any case numbers, etc.
• If your credit cards are stolen or used without authorization
• Contact the issuing financial institution(s)
• you can use the toll free numbers on your monthly statement
• cancel all stolen or unauthorized credit/debit card account(s)
• ask that your account be flagged for possible unauthorized activity
• have a new card issued with new account numbers
• Keep a log of all the contacts you make and note as much information as possible (see above)
• Also contact the U.S. Secret Service, they have jurisdiction over financial fraud cases, but they have a high dollar limit before they will investigate it
• Contact the big three credit bureaus (Trans Union, Experian, Equifax)
  1. Report the theft, misuse, or unauthorized account(s)
  2. Request that your accounts be flagged for possible unauthorized activity at your request
  3. Note the period of time that the alert will be posted and how to extend it
  4. Add a victim’s statement to the report
  5. Request that you be contacted to verify all applications for credit in your name
  6. Make sure that the credit bureaus provide you with names and phone numbers of credit grantors with whom fraudulent accounts have been opened
  7. Request in writing all fraudulent information and inquiries be permanently removed from your credit report
  8. Request any helpful information be mailed to you to help you recover from being a victim