Identity Theft

You've seen it time and time again in the news; story after story about people stealing identities and using them to get checking accounts, credit cards, etc. in that persons name, leaving them to pay the bills.

For example consider the following story from CBS News SAN FRANCISCO, June 17, 2003.

Waging a new campaign against identity theft, U.S. postal inspectors throughout the West are tracking down scores of suspected mail thieves. "At this time 96 suspects have been apprehended throughout northern California, and that continues to grow," said U.S. Postal Service spokesman John Wisniewski.

Officials announced Tuesday that what was stolen from mailboxes - credit cards, Social Security numbers, bank accounts - provided the raw material for criminals to steal whole identities. "The fact of the matter is that one's mail is a veritable treasure trove for would-be identity thieves," says Larry Brown, assistant U.S. Attorney for the Eastern District of California.

"They can do some great damage to people's credit reports," says Bert Pollaci, who runs a huge San Francisco apartment complex where mailboxes were being robbed every few weeks. "The guy would come in and take a pry bar behind the Postal Service locks and pry the whole thing open". But soon after security cameras were installed, the thief was caught in the act. When he was arrested, police discovered 10,000 pieces of mail.

"He had a filing system with each individual separated out - their credit cards, their Social Security numbers," says U.S. Attorney Kevin Ryan.

OR

For more than a year, unbeknownst to people who used Internet terminals at Kinko's stores in New York, Juju Jiang was recording what they typed, paying particular attention to their passwords. Jiang had secretly installed, in at least 14 Kinko's copy shops, software that logs individual keystrokes. He captured more than 450 user names and passwords, and used them to access and open bank accounts online.

The case, which led to a guilty plea earlier this month after Jiang was caught, highlights the risks in using public Internet terminals at cybercafes, libraries, airports and other establishments. "Use common sense when using any public terminal," warned Neel Mehta, research engineer at Internet Security Systems.

or

In a complaint filed in federal court, one group sent offers for herbal Viagra, dating services, and do-it-yourself spam kits from hundreds of dial-up EarthLink accounts in and around Birmingham, Alabama. The group paid their bills with stolen credit-card and bank-account numbers and hid behind a web of false names, addresses and companies to hide their identities, the suit contended.

or

In Vancouver, British Columbia, a group used stolen credit-card numbers to set up hundreds of EarthLink accounts as well. That team then attempted to trick Internet users into divulging credit-card numbers, account passwords and other sensitive personal information by posing as another Internet provider that had lost account information, according to the complaint.

and

For the victims, straightening up their financial life can become a full time job. The woman who stole Esther DeAnda's identity is now behind bars, but DeAnda is still trying to clear up the mess in her credit report. "She serves her time and comes out clean; probably has better credit than I do," DeAnda says.

And to prove that no one is immune to identity theft, the U.S. Attorney who announced Tuesday's arrests also announced that he is a victim. "I have to change all my credit cards, all my bank accounts, my retirement accounts, everything was stolen. And we're dealing with that and it's not fun, I can tell you," says Kevin Ryan.

Last year the Federal Trade Commission received more than 160,000 complaints from victims of identity theft. The Post Office says the first line of defense is to pick up your mail before someone else does.

Identity theft heads the list of consumer complaints, according to a new report from the Federal Trade Commission. More than 27 million people have been victims of identity theft in the last five years, costing them $5 billion and businesses and financial institutions almost $48 billion, the Federal Trade Commission said Wednesday. The FTC released a survey showing that in the last year alone, 9.9 million people were victims of identity theft (These figures were extrapolated from a random survey of 4,057 adults).

In 2002, the FTC received 161,819 complaints about identity theft, more than double 2001, but agency officials acknowledge many people don't report the crime. The Justice Department estimated that as many as 700,000 Americans are victimized annually, costing each more than $1,000 to right the damage to their accounts and reputations.

Credit card fraud was the most common form of identity theft last year, accounting for 42 percent of the complaints to the FTC. Second at 22 percent was phone or utility fraud, followed by bank fraud at 17 percent.

Identity thieves can make false Welfare claims in your name, file false tax refund claims, apply for a new Driver's License at a different address, your credit can be damaged, and fixing it can cost you hundreds of dollars and take hundreds of hours of your time

• They open a new credit card account, using your name, date of birth, and Social Security number. When they use the credit card and don't pay the bills, the delinquent account is reported on your credit report.
• They call your credit card issuer and, pretending to be you, change the mailing address on your credit card account. Then, your imposter runs up charges on your account. Because your bills are being sent to the new address, you may not immediately realize there's a problem.
• They establish cellular phone service in your name.
• They open a bank account in your name and write bad checks on that account.
• Sometimes victims of identity theft are wrongfully accused of crimes committed by the identity thief.

The following steps may help you reduce your risk of identity theft.

For article on protecting your identity on the Internet, Click here.

For articles on "Phishing" scams targeting you on the internet click here

For article from the IRS on scammers using fake IRS forms click here

1. Guard your Social Security number, Drivers License Number, Date of Birth, any form of ID. They can be the key to your credit report, bank accounts, Tax refunds, etc.; and are the prime target of criminals. Criminals can usually get your Social Security number from you drivers License or Vice Versa
2. Do not have your Social Security number, Drivers License number, Date of Birth, phone number, or other personal information printed on your checks.
3. Do not carry extra credit cards or other important identity documents except when needed. Avoid carrying your Social Security number and driver's license together in your wallet or purse.
4. Make a photocopy of all your credit and ID cards. Copy both sides of your license and credit cards so you have all the account numbers, expiration dates and phone numbers if your wallet or purse is stolen.
5. Cancel credit card accounts you don't use on a regular basis. If you haven't used a card for at least 6 months, you probably don't need it. Only carry one or two credit cards.
6. Never give your credit card number, Social Security number, Drivers License Number, Date of Birth, or other personal information out over the phone or Internet unless you initiated the contact and trust that business and their security precautions.
7. Carefully examine the charges on your credit card statements before paying them.
8. Shred all old bank, loan, and credit card statements, credit card offers, etc. before trashing them. Shred CD, DVD, Book club, etc. offers because someone else may use them and intercept the packages in your mailbox. Use a crosscut shredder. Crosscut shredders cost more than regular shredders but are superior.
9. If you have a Palm Pilots, your Palm Pilot or other handheld PDA devices contain a wealth of information about you and your friends that could increase the risk of identity theft should it get into the hands of thief. You should use password protection so that if your PDA is turned on by an unauthorized user, only a log-in screen will appear. You could also add instructions on how to contact you to return the device. Most password products range in features and price ($10-$30). Some of the more full-featured products offer data encryption, while others simply offer a password on startup, leaving the data in the device unencrypted. You should also keep a backup of the data on your PDA to use as a starting inventory should it be lost.
10. Wallets should be kept in your front pockets if possible, you are more sensitive there than your rear and it is easier to see someone trying to pick your pocket.
11. Purses with shoulder straps should be tucked under your arm. Make sure that your purse is in your line of vision. Book bags, Backpacks, and other carry-alls that hang on your back (out of sight) are easy targets.
12. Use a fanny pack to store your wallet and valuables when you know you will be in large crowds. Place the pack so that it is in front of your body and always in your line of vision.
13. Do not mail bill payments and checks from home. They can be stolen from your mailbox and washed clean in chemicals. Take them to the post office.
14. Get a locking Mailbox. Whether your mailbox is on the street or on your house, it can be gotten into and your mail may be your worst enemy. If you have a post office box, make sure it is not open at the back. People who have a box under, over, or beside yours; can reach through their box and pull your mail out of your box from the rear. Your Credit account Bills usually have your account number on them. someone who steals your name can send a letter claiming they are you and you have moved and lost your card, and get a new card issued.
15. Remove your name from the marketing lists of the three credit reporting bureaus to reduce the number of pre-approved credit offers you receive. To opt out of pre-approved offers of credit for all three bureaus, call (888) 5OPTOUT. You may choose a two-year opt-out period or permanent opt-out status. None of the Credit Bureaus make this easy, this is how they make money. You may call Equifax: (800) 525-6285; Experian: (888) 397-3742; and Trans Union: (800) 680-7289.
16. Add your name to the name-deletion lists of the Direct Marketing Association's Mail Preference Service and Telephone Preference Service (click here) used by banks and other marketers.
    • Mail Preference Service, P.O. Box 643, Carmel, NY 10512.
    • Telephone Preference Service, P.O. Box 1559, Carmel, NY 10512.
    Click here for the DMA's state do not call lists click here
17. Order your Social Security Earnings and Benefits statement once a year to check for fraud. (click here)
18. Monitor your credit report. It contains your Social Security Number, Date of Birth, present and prior employers, present and past addresses, a listing of all Credit, loan, and savings account numbers, (including those that have been closed), mortgage holder, and your overall credit score.
19. When applying for a loan, credit card, rental, or anything else that requires a credit report, request that your Social Security Number on the application be truncated or completely obliterated and your original credit report be shredded before your eyes or returned to you once a decision has been made. A lender or rental manager only needs to have your name and credit score to justify a decision.
20. Subscribe to a credit report monitoring service that will notify you whenever someone applies for credit in your name.

What to do if your identity is stolen?

• Alert the police that your wallet is stolen. Fill out a police report, and consider signing a written affidavit verifying that unauthorized transactions on your account are fraudulent. Send copies to creditors and credit bureaus as proof of the crime.
• If a civil judgment has been entered in your name for actions taken or debts incurred by your impostor, contact the court where the judgment was entered and report that you are a victim of identity theft. If you are wrongfully prosecuted for criminal charges, contact the state Department of Justice and the FBI and obtain information on how to clear your name.
• Contact the FTC: (877) 438-4338. or click here. While federal investigators only tend to pursue larger, more sophisticated fraud cases, they do monitor identity theft crimes of all levels in the hopes of discovering patterns and breaking up larger rings. Fill out the ID Theft Affidavit at the FTC's Web site (click above), make copies and send to creditors. The agency also has an online complaint form for other issues (click here).
• Report the fraud to the Federal Trade Commission Office of the Inspector General's fraud hotline
• For a suspected fraudulent Change of Address, contact your local USPS Postal Inspector. Call the U.S. Post Office to obtain the local phone number, (800) 275-8777. Find out where fraudulent credit cards were sent. Notify the local Postmaster for that address to forward all mail in your name to your own address. You may also need to talk with the mail carrier. www.usps.gov/websites/depart/inspect
• Notify the Social Security Administration to replace Social Security or Medicaid cards
• If you had a Military ID card, Immediately notify the personnel support detachment (PSD) and your immediate chain of command up to the commanding officer. Apply for a new ID card. In the event that a dependant's ID card is involved, notify your immediate supervisor, the PSD, and secure a replacement.
• If you lost a Birth certificate you need to Notify the issuing county recorders office of the loss. Request that they flag your account. In the future, you should never carry this on your person unless needed that day.
• Contact the Department of Motor Vehicles to get a new driver's license, Place a stolen/lost card warning on your file. At this time, request for a replacement. If you discover that a thief is using your license, you can always request a license number change at a future date. If your state uses your SSN as your driver's license number, request an alternate number be used for the new card. If your vehicle registration papers are missing, notify them of this as well.
• Contact the Immigration and Naturalization Service (INS), as well as your country's embassy to replace Green Card or immigration papers
• Notify the U.S. State Department if your passport is missing. click here If the passport was issued by another country, notify the issuing country's embassy.
• Contact the three major credit bureaus. Equifax: (800) 525-6285; Experian: (888) 397-3742; and Trans Union: (800) 680-7289. Use the fraud division number rather than the general number. Place a fraud alert with each agency stating something like "On (date) my purse/wallet/palm pilot was stolen/lost. Please do not issue credit, or allow address or name changes to be made without my express permission. I may be reached at (home phone number) and (alternate phone number, such as your cell phone number, Office phone number, etc.)
  
  While speaking with the agencies you should also order a copy of your credit reports. This is also a time to inquire if any new accounts have been opened recently or are pending. If so, get contact information for those creditors and contact them immediately. This allows you to check for any pending applications and verify that all the current information is correct. It becomes an accurate baseline for the fraud alert. For example, impostors might try to change your address. They can do so by applying for credit listing an address different than your current one. Differences in addresses are a warning flag for possible fraudulent activity.
  
  In 2 to 3 months you will need to order additional copies of your reports to check for fraudulent accounts. There may be a small charge for these reports if you are not yet a victim of identity theft.
• Contact creditors for any accounts that have been tampered with or opened without your knowledge. Be sure to put complaints in writing. Whenever possible, speak with a fraud investigator and not a customer-service representative. If you are not satisfied with the answers given, request to speak with a supervisor. Keep going up the chain of command until you reach a decision-maker. Request replacement cards with new account numbers. Ask the credit grantors to furnish copies of any fraudulent transactions that occurred after the card was stolen/lost. In California and Washington, they are required by law to give you these copies. Monitor your mail for collection notices, missing statements or bills. Check bills for evidence of new fraudulent activity. Report problems immediately to credit grantors.
• Change account passwords. Avoid using your mother's maiden name or the last four digits of your Social Security number, street address, birth date, or any easily guessed number as a personal identification number.
• Checking account or saving account numbers, checks, ATM, debit cards used without pin numbers: Contact the bank and close the account. Open a new account with a new number. Add a password on the account. It sometimes helps to go directly to the local branch and speak face-to-face with a bank administrator or fraud investigator. Do not waste time explaining your case to a teller. Many victims report that this was a good relationship to establish, especially when it came to frequent (free!) required notary signatures.
• If you had a Check cashing card you should notify your bank immediately. Cancel the card and request assistance on what to do next.
• If you had any supermarket "club" cards, including check cashing you should notify the store, cancel the card and request a new card.
• If you have a long distance calling card with pin number printed on the card you should cancel the card immediately and request a replacement card. Do not have your pin number printed on the card. Change password on the account.
• Library, video store, Auto Insurance/AAA, All other cards with a membership or identification number printed on the card (SSN or another number) contact the issuing company/agency/school/employer/etc. Notify them of the loss and ask for that account to be closed and another opened with a replacement number. In the event that your Social Security Number was the membership number, request that an alternate number be used or that a letter be added to the membership number. This will help to separate your usage from that of the thief. You may also want to add a password to the new account.
• If you had a renewable long distance calling card, Contact the company. Request that they transfer any remaining minutes to another card with a new account number. Close the account to the card. Contact your telephone and utility companies to prevent a con artist from using a utility bill as proof of residence when applying for new cards.
• You may want to consult a lawyer to determine legal action to take against creditors and/or credit bureaus if they are not cooperative in removing fraudulent entries from your credit report or if negligence is a factor. Call the local Bar Association or Legal Aid office to find an attorney who specializes in consumer law, the Fair Credit Reporting Act and the Fair Credit Billing Act.

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