According to the F.B.I., identity theft
is the fastest-growing white-collar crime in the United States. Nowadays, when
your purse or wallet gets stolen, the cash inside may not be the only thing a
thief wants to steal. The most valuable items in your wallet are your Social
Security number, ATM card, credit cards, bank checks, and any other items
containing your personal information. Additionally, during the course of a busy
day, you share this information when making transactions in person, over the
telephone and online to buy goods and services. If this sensitive information
falls into the hands of a criminal, it may be used to steal your financial
identity.
Identity theft occurs when someone uses your name,
Social Security number, credit card number or some other piece of your personal
information to apply for a credit card, make unauthorized purchases, gain
access to your bank accounts or obtain loans under your name. Unfortunately,
most people do not know that they have been victims of identity theft until
mysterious charges appear on their credit card bills or they are rejected for a
mortgage because unpaid bills appear on their credit report.
Your Social Security number is the most valuable piece of your personal financial
information because it is your main identifying number for employment, tax
reporting, and credit history tracking purposes. If your Social Security number
falls in the hands of a thief, you could face serious problems as a result. A
thief could use your Social Security number to obtain employment, open credit
card accounts or obtain loans under your name. The best way to protect yourself
is to guard your Social Security number and provide it to others only when
absolutely necessary. Some businesses request your Social Security number for
general record keeping. If they do, ask how your Social Security number will be
used and whether you can use any other identifying number instead.
If your Social Security number is stolen, applying for
a new one may not solve your identity theft problem. For example, a new Social
Security number may not ensure a new credit record because credit bureaus may
combine the credit records from your old Social Security number with your new
one. Moreover, even when the old credit history is not associated with your new
Social Security number, the absence of any credit history under your new Social
Security number may make it more difficult to obtain credit.
There are numerous ways in which an identity thief can
make unauthorized charges on your existing credit card accounts, or open up new
accounts under your name. An ordinary thief might steal your wallet or purse
and try to make use of your stolen cards and checks. The more sophisticated
thief can fill out a change of address form from the post office to get all
your bills sent to another address. He or she can also call your credit card
issuer and, pretending to be you, change the mailing address on your credit
card accounts. The impostor then runs up charges on your account. Since your
bills are being sent to a new address, you may not immediately realize the
problem. An identity thief might also open new accounts under your name by
stealing and completing a pre-approved credit card offer sent to you in the
mail, using your name, date of birth and Social Security number, but a
different address, on the application form. If this occurs, you may not
discover that a new account has been opened under your name until the unpaid
bills appear on your credit report.
Identity thieves can also obtain your credit card
information from purchases you make at stores, over the telephone or online.
For example, the credit card information you provide in person or over the
telephone during a purchase can be improperly used to make unauthorized charges
on your account. In addition, thieves can obtain your credit card number and
other personal information through fraudulent or unsecured Web sites. No matter
how professional looking the Web site, check the company’s reliability with the
Better Business Bureau before doing business with it, review the Web site’s security
policy, and be sure to use a secure browser if you are providing credit card
information online. In the address window of your browser, check to see that
the first part of the company’s Web address changes from "http://"
to "https://;" and also check the lower corner of the Web page
to see whether a lock or key symbol appears, signifying security. Using a
secure browser helps to ensure the safety of your personal data when it is
being transmitted to a company’s computers.
Before making online purchases, check the Web site’s
user agreement and privacy policy to find out how the company uses your credit
card and other personal information. The user agreement and privacy policy will
inform you whether the information you provide is stored in the company’s
database and whether you can opt out of being added to the company’s mailing
list or having the company share your personal information with a third party.
Privacy Seal programs, such as the Better Business Bureau’s BBBOnline program,
provide seals for Web sites that have met certain standards for protecting the
privacy of the consumer information that they collect.
Check Fraud
Identity thieves can
drain your checking account by stealing your checks or your checking account
number from your home or office and forging your signature, or by making
counterfeit checks in your name, using a home computer. Some thieves even use
cleaning solvent to remove what is already written on a check, making it
payable to themselves. If your checks have been stolen or misused, immediately
notify your bank, place a stop payment order, and close your checking account.
Be aware that identity
thieves can also open checking accounts in your name using personal information
such as your Social Security number. When they write bad checks on that
account, those debts appear on your credit report.
Scams
Internet Account Updates
You may receive e-mail
requests that seem to be from your Internet Service Provider stating that your
"account information needs to be updated" or that "the credit
card you used to sign up for service is invalid or expired and the information
needs to be reentered to keep your account active." Such requests may come
from scam artists seeking to obtain your personal information to commit fraud.
If you receive this kind of request, do not respond without checking with your
Internet Service Provider first.
Phony Identity Theft Prevention Services
The Federal Trade
Commission warns that some companies that claim to be identity theft prevention
services are guises for obtaining personal information from you such as your
driver’s license number, mother’s maiden name, Social Security number and
credit and bank account numbers. Remember, do not give out any personal
information over the phone or online unless you are familiar with the business
that is asking for it. If you are unsure about a firm, check it out with the
Better Business Bureau
Prevention
Although there is
no method for guaranteeing that identity theft will never happen to
you, below are tips than can help you minimize your risk:
- Carry
only the cards you actually need. Minimize the identification information
and the number of cards you carry in your wallet or purse. Do not carry
your Social Security card unless you need it.
- Never
put your account information on the outside of an envelope or on a
postcard.
- Cut up
old or expired credit cards. Close all inactive credit card and bank
accounts. Even though you do not use them, these accounts appear on your
credit report and may be used by thieves.
- For your
ATM card, choose a Personal Identification Number (PIN) different from
your address, telephone number, middle name, the last four digits of your
Social Security number, your birth date or any other information that
could be easily discovered by thieves.
- Memorize
your PIN; do not write it on your ATM card or keep it written on a piece
of paper somewhere in your wallet. Statistics show that in many instances
of ATM card fraud, cardholders wrote their PINs on their ATM cards or on
slips of paper kept with their wallets or purses.
- Keep
personal information in a safe place. If you employ outside help or are
having service work done in your home, keep your personal information out
of sight.
- Give
your Social Security number only when absolutely necessary. Ask to use
another type of identifying number whenever possible.
- Do not
give out personal information over the phone, through the mail, or over
the Internet unless you have initiated contact or know the business with
which you are dealing.
- Compare
your ATM receipts and cashed checks with your periodic bank statements to
check for unauthorized transfers or charges.
- Shred
credit card statements, bank statements and pre-approved credit offers
when you do not need them. Consider investing in a paper shredder.
- Decrease
the number of unsolicited credit card applications that you receive. The
fewer credit card applications you receive, the less likely it is that one
will be stolen. Call (888) 5OPT-OUT to have your name removed from the
marketing lists sold by the major credit bureaus for two years, or removed
permanently.
- Ask your
bank about its privacy policies and information practices. Find out the
circumstances under which your bank would provide your account information
to a third party.
- Order a copy of your credit report from the three credit
reporting agencies at least once every year to review your file for possible
fraud.
Detection
One of the most
frustrating aspects of identity fraud is that you may not discover it until it
has already occurred. Below are some of the warning signs:
- You
receive bills for a credit card account you never opened, or you may
notice unfamiliar and unauthorized charges on your bills. Collection
agencies may contact you regarding the payment of such debts.
- A
billing cycle passes without receiving your credit card statement — or
other expected mail - because it has been sent to a different address.
- Bank
statements include transfers or withdrawals you do not remember, checks
are missing from your checkbook, or new checks do not arrive in the mail.
- You
get turned down for a credit card, mortgage or other loan because your
credit report includes debts you never knew you had.
Correcting the Problem
The most important thing
to do when you discover identity fraud is to take action right away. Remember
to keep records of all your telephone calls and other correspondence with
companies regarding the identity fraud.
- File a
report with your local police or the police in the community where the
identity theft took place. Keep a copy of the police report and make note
of the date of your report, in case your bank, credit card company or
other company needs proof of the crime.
- If you
suspect that your mail is being diverted to another address, check with
your local post office to see whether an unauthorized change of address
form has been filed under your name.
- Call
your credit card issuers right away to check on the status of your
accounts if your bills do not arrive on time. If necessary,
close all your accounts. You should keep a record in a safe place,
separate from your credit cards, of your account numbers, expiration
dates, and the telephone numbers of each card issuer so you can report a
loss quickly.
- Notify
your bank at once if your ATM card has been stolen or if unauthorized
transfers and withdrawals have been made on one or more of your accounts.
Alert your bank if your checks are stolen or missing. When you open new
bank accounts, ask that a password be used before any inquiries or changes
can be made to the accounts and avoid using a PIN that may be discovered
by a thief, such as your birth date or the last four digits of your Social
Security number.
- Canceling
your credit cards may stop impostors from using your existing accounts,
but it does not stop them from opening new accounts under your name. To
prevent this from occurring, if your cards may have been misused by an
unauthorized party, contact the fraud departments of each of the three
major credit bureaus and ask them to "flag" your file as one belonging
to a possible fraud victim. This warning will include a statement that
creditors should call to get your permission before approving new credit
cards or loans in your name. After calling each of the three credit
bureaus (listed in the Resources section of this report), you should
follow up with them in writing. Keep copies of such written notices.
- Ask the
credit bureaus for copies of your credit reports. You are entitled to a
free copy of your credit report if you were recently denied credit or if your
report is inaccurate because of fraud. Review your report carefully to
make sure no unauthorized charges were made on your existing accounts and
that no fraudulent accounts or loans were established in your name. In a
few months, order new copies of your credit reports to verify that the
inaccurate information has been removed and no new fraudulent activity has
occurred.
- Contact
each of the creditors for any accounts that were tampered with or falsely
established in your name. Ask to speak with someone in the security or
fraud department. According to the Fair Credit Reporting Act, you must follow up the
calls with a letter to the creditor. When writing to a credit card company,
be sure to send the letter to the address provided to report billing
errors. Do not send it to the address where you send payments, unless you
are directed to do so.
Liability
Credit Cards
If you report the loss
before the credit card is used, the card issuer cannot hold you responsible for
any unauthorized charges. If a thief uses your credit card before you report it
missing, the most you will owe for unauthorized charges is $50 per card. This
is true even if the thief uses your credit card at an ATM machine to obtain a
cash advance.
As such liability is
limited to $50, beware of calls from telemarketers selling "loss
protection" insurance. Some telemarketers may falsely claim that you will
be responsible for all unauthorized charges made against your account if your
credit card is stolen. Don’t buy the pitch and don’t buy the unnecessary
insurance.
ATM and Debit Cards
Be aware that ATM and
debit cards do not allow the same protections as credit cards. If you fail to
report unauthorized charges within a timely manner, you could be held liable
for the charges.
- If you report an ATM or
debit card missing before it is used without your permission, your financial
institution cannot hold you responsible for any unauthorized withdrawals.
- If you report your ATM
or debit card lost or stolen within two business days of discovering the loss
or theft, your liability is limited to $50.
- If you report your ATM
or debit card lost or stolen after the two business days, but within 60 days
after a statement showing an unauthorized withdrawal, you can be liable for up
to $500 of what a thief withdraws.
- If you wait more than 60
days, you could lose all the money that was taken from your account after the
end of the 60 days and before you report the card missing.
Checks
Most states hold the
bank responsible for the losses from a forged check. However, you may be held
liable for the forgery if you do not notify the bank in a timely manner that a
check was lost or stolen, or if you do not monitor your account statements and
promptly report an unauthorized transaction. Contact the major check
verification companies (listed below) to request that they notify retailers
using their databases not to accept the lost or stolen checks, or ask your bank
to notify the check verification service with which it does business.
National Check Fraud Service: 1-843-571-2143
SCAN: 1-800-262-7771
TeleCheck: 1-800-710-9898 or 1-800-927-0188
CrossCheck: 1-707-586-0551
Equifax Check Systems: 1-800-437-5120
International Check Services: 1-800-526-5380
Resources
Contact each of the
three major credit bureaus if you discover that you are the victim of identity
fraud. You are entitled to a free copy of your credit report if you are
unemployed, on welfare, were recently denied credit or if your report is
inaccurate because of fraud. Otherwise, there is a small fee for your credit
report. When contacting the credit bureaus, you need to provide your Social
Security number, date of birth, phone number, current address, any previous
addresses over the past two years, and the name of your current employer.
Equifax
To report fraud by mail, contact Equifax at
P.O. Box 740256
Atlanta, GA 30374.
To order your report by telephone, contact 1-800-685-1111.
To report fraud over the telephone, contact 1-800-525-6285.
You can also access Equifax’s Web site at www.equifax.com.
Experian
To order your report by mail, contact
P.O. Box 2002
Allen, TX 75013.
To report fraud by mail, contact
P.O. Box 9532
Allen, TX 75013.
To order your credit report or report fraud by telephone,
contact 1-888-EXPERIAN (397-3742).
You can also access Experian’s Web site at www.experian.com.
Trans Union
To order your report by mail, contact
P.O. Box 1000
Chester, PA 19022.
To order your report by telephone, call
1-800-888-4213.
To report fraud by mail, contact
Fraud Victim Assistance Division
P.O. Box 6790
Fullerton, CA 92834.
To report fraud by telephone, call 1-800-680-7289.
You can also access Trans Union’s Web site at www.tuc.com.
The Federal Trade Commission (FTC) is the
federal clearinghouse for identity theft complaints. Although the FTC
does not have the authority to bring criminal cases, it helps victims
of identity theft by providing them with information to help resolve
the financial and other problems that result from identity theft. The
FTC also may refer victims’ complaints to other appropriate government
agencies and private organizations for action.
Contact the FTC by calling its toll-free hotline at 1-877-IDTHEFT (438-4338),
by writing to
Identity Theft Clearinghouse
Federal Trade Commission
600 Pennsylvania Avenue, NW
Washington, DC 2058
or by accessing its Web site at www.consumer.gov/idtheft. The FTC also provides very
detailed information about identity theft through this Web address: http://www.ftc.gov/bcp/conline/pubs/credit/idtheft.htm.
The Social Security Fraud Hotline should be
contacted if your Social Security number is being misused. Contact the
Social Security Fraud Hotline by mail at
P.O. Box 17768
Baltimore, MD 21235
by telephone at 1-800-269-0271, by fax at 1-410-597-0118
and by e-mail at oig.hotline@ssa.gov.
You can also access its Web site at www.ssa.gov.
Contact the following bank regulators if you have
persistent problems resolving your identity fraud problems with a financial
institution:
The Office of Thrift Supervision regulates savings banks and savings and loan banks having
the word "Federal" in their name or which use the initials FSB
(federal savings bank) or FSLA (federal savings and loan association). You can
contact this agency by writing to the
Office of Thrift Supervision, Northeast Region
Consumer Affairs
10 Exchange Place Centre, 18th Floor
Jersey City, NJ 07302.
You can also contact this agency by telephone at 1-800-842-6929
by accessing its Web site at www.ots.treas.gov
or by e-mail at consumer.complaint@ots.treas.gov.
The Office of the Comptroller of Currency regulates national banks,
which can usually be identified because they have the words
"national" or "national association" in their titles or the
letters N.A. or NT&SA following their titles. If you are unable to resolve
a complaint with the bank yourself, contact the
Office of the Comptroller of Currency Consumer Assistance Group at
1301 McKinney Street, Suite 3710
Houston, TX 77010.
You can also contact this agency by telephone at 1-800-613-6743 (business days
9:00 a.m. to 3:30 p.m. CST)
by accessing its Web site at www.occ.treas.gov
or by e-mail at Customer.Assistance@occ.treas.gov.
The U.S. Postal Inspector can assist
if an identity thief stole your mail to get new credit cards, bank and credit
card statements, pre-screened offers, tax information, or if a thief has
falsified change-of-address forms. Contact your local post office for the phone
number for the nearest postal inspection service or check the Postal Service
Web site at www.usps.gov/websites/depart/inspect.
The Federal Bureau of Investigation is one of the federal criminal law enforcement
agencies that investigates cases of identity theft. Local field offices are
listed in the Blue Pages of your telephone directory. You can also access the
FBI’s Web site at www.fbi.gov.
The Better Business Bureau can be
contacted if you would like to check the Reliability Rating of a company or if
you have a problem resolving fraudulent charges.
To file a complaint with the Better Business Bureau through this Web site,
click here: http://www.bbb.org/bbbcomplaints/Welcome.asp.
