IDENTITY THEFT – THE NEWEST CRIME WAVE
By Russell Tuncap, CMA, CPA
• In California, a woman is convicted of using a stolen Social Security
number to obtain thousands of dollars in credit and then filing for
bankruptcy in the name of her victim.
• In Florida, a woman was convicted of obtaining a fraudulent driver’s
license using the victim’s name, then using the license to withdraw more
than $13,000 from the victim’s bank account and charging another
$4,000 on five credit cards falsely obtained from five department stores.
• In another California case, a man was sentenced to 27 months for
obtaining private bank account information about an insurance company’
s policyholders and using that information to deposit $764,000 in
counterfeit checks into a bank account he established.
Unfortunately, with the new millennium, an old crime is experiencing a
resurgence with surprising speed. With more and more information being
stored on computer networks and databases, our personal lives and
identities are out there in “cyberspace.” The great majority of this
information is secure and protected. But to a growing number of
unscrupulous thieves, our information may be taken from us without our
knowledge to create an identity that steals, cheats, and lies. This crime,
as old as the Old Testament story of Jacob stealing his brother’s
blessing from their father Isaac, is identity theft. In 2003, an estimated
seven to ten million cases involving identity theft and identity fraud were
reported.
What is identity theft and identity fraud?
Sometimes used interchangeably, identity fraud or identity theft, is the
use of another person’s personal data to wrongfully and deceptively
profit at the victim’s expense. There are two types of identity theft. The
first, “identity fraud” sometimes called “application fraud” or “true name
fraud” is when the thief falsely opens new accounts using the victim’s
information. The second, “identity theft” or “account takeover” happens
when the thief uses an already existing account for criminal gain.
In the case of identity fraud, it could take weeks or even months to find
out that a crime has been committed. Often, the victim first learns of the
theft when a bill collector calls to demand payment. With identity theft,
the victim will discover the crime when they receive or review a bill or
statement.
How does identity theft or identity fraud occur?
People steal information from the rightful owners in several ways, from
simple to high tech methods.
In and around the home:
Delivered mail stolen from unprotected mailboxes. This could
include banking information on bank statements, credit card numbers
from statements, newly issued credit cards, “pre-approved” credit card
offers, insurance information, investment account information, etc.
Personal information left lying around the house. Identity theft or
fraud can be perpetrated either by someone who has broken into your
home or even by someone you have invited into your home. If you leave
bills, bank statements or other vital information lying around on the coffee
table or kitchen counter or at your home work station, then your
information may literally walk out the door.
Outgoing mail left in unprotected mailboxes. The flag on the
mailbox lets the letter carrier know that mail is in the box, but it also
signals the thief that important information may be there also. Typically,
outgoing mail will contain credit account numbers, phone numbers, utility
account numbers, etc. all accompanied with a paper check (with banking
information) accompanying the bill. If you mail out a credit account
application, then other information, such as proposed passwords and
credit references will be available.
“Dumpster diving,” or rummaging through trash for discarded but
important information is an activity that can produce credit applications,
discarded remittance statements from creditors, or other documents that
have valuable information on them.
Incoming telephone calls for every reason, from offering services
to “prize” distributions to asking for charity donations. Identity thieves
may even call posing to be government or business employees or
someone with a legitimate need for (and legal right to) the information.
They will try to talk you out of as much personal information as they can.
Alternatively, they might try to coerce or scare information out of you.
Such a scam would involve a thief posing as a utility company employee,
threatening to cut off your electricity because a payment was never
received. They offer to keep the power on and help to track down the
lost payment, if only you give them your banking information to process a
check-by-phone.
With the popularity of the Internet, identity thieves have found that
cyberspace is an appealing place to look for victims. For a number of
reasons, people respond to unsolicited e-mails, or “spam” that promises
them something beneficial but requests identifying data. Sophisticated
criminals from anywhere in the world can use the Internet to steal
information that will allow them to create or assume deceptive identities.
A computer hacker can install a type of computer program known as “spy
ware” on a computer without the knowledge of the owner. This program
looks for, and then transmits, passwords, accounts numbers, and other
information. Or in a scheme called “phishing,” the email will appear to
be from a legitimate source and request sensitive information, which the
victim supplies.
Around town:
The old-fashioned methods of getting your information is “purse
snatching” and pick pocketing. While these are low-tech methods, they
are still very effective on unsuspecting victims.
Using an ATM machine in public places. Thieves also practice
“shoulder surfing,” where they stand close enough to see your Private
Identification Number (PIN). Typically, banks provide a secure area for
ATM transactions, but more and more ATM’s are being placed in
convenience stores, shopping malls, and even fast food outlets. These
open and often congested machine placements are prime locations for
“shoulder surfing.” Sophisticated thieves may even use binoculars or
spyglasses to stay at a convenient distance while recording your PIN.
Using public telephones in an open area. Not only will thieves
watch for PIN codes being used to access long distance services, but
they may also stand close by, pretending to be using a phone. They will
listen as you give vital information, such as passwords or credit card
information. This can easily happen to you when making a hotel
reservation or purchasing tickets by phone.
Other methods that are not in your control:
Computer hackers can infiltrate a company’s database and steal
your personal information. Although most companies have protective
measures in place, it is always a game of one-upmanship between
thieves and honest society.
A disgruntled employee can steal your personal information, such
as a credit application or account numbers or passwords, and sell it to
identity thieves.
An actual theft of an organization can occur, with the target being
the files of the customers, students, clients, etc.
What happens with the information?
In the case of identity fraud, the thief may open new charge accounts
using your driver’s license number, Social Security number, birth date,
along with a false billing address so that you will never see the billing
statement. If they roughly resemble you, they may even apply for a new
driver’s license using their picture. They may sign up for new cell phone
services or buy long distance cards to resell. They may use your existing
credit history to take out new loans and never make a payment. They
may open up new checking accounts and write bad checks against the
accounts. They may sign a lease for either a short term or long-term
commitment, if there is immediate reward. They may even file for
bankruptcy to avoid paying the debts incurred under your name.
In the case of identity theft, the thief may simply start charging purchases
on your stolen credit card. They may initiate a change-of-address
process with credit card companies or department stores to keep you
from finding out the unauthorized charges for as long as possible. They
may write checks on your account or use debit card transactions to drain
your bank accounts. They may even give your name during a police
arrest. If they are released and then don’t show up, it will be you who the
police are after.
What happens to the victim?
In most cases, the Truth in Lending Act limits the consumer’s liability of
unauthorized charges on a credit card to $50, but you must meet certain
conditions. For other incurred debt, it can be much harder to mitigate the
damage. However, some creditors have their own credit protection plan
for their customers. But unfortunately, like the victims of so many
physical crimes, victims of identity theft and identity fraud are left
financially and emotionally hurting wondering “why” and “how much
longer.”
In a study released by the Identity Theft Resource Center, victims
experienced:
An emotional impact that is similar to feelings felt by victims of
rape, violent assault and repeated battering. Some victims reported
feeling dirty, defiled, embarrassed and undeserving of assistance. Other
victims reported a split with a spouse or significant other and being
unsupported by family members.
The average victim spends an average of 600 hours in time and
$1,400 in out-of-pocket expenses recovering from this crime. Often, the
recovery time drags out over a period of years.
Even after the thief stops using the information, the impact has a
lasting effect. Repercussions include increased insurance or credit card
fees, being denied for employment, being denied further credit (from
store accounts to home loans), battling bureaucracies in collection
agencies and credit reporting agencies, and even issuers who refuse to
clear records despite substantiating evidence of the crime.
About 85% of victims found out about the crime due to an adverse
situation, such as denied credit, denied employment, notification by
police or collection agencies, etc. Only 15% found out through pro-active
business’ that verified a submitted application or a change of address.
How do I prevent becoming a victim?
Like most situations in life, there are no guarantees. There is no
foolproof deterrent to identity theft or identity fraud, but by prudently
managing your personal information, you can lessen your chances of
becoming a victim.
In and around the home:
If your mailbox does not have a lock, try not to leave delivered mail
in your mailbox for excessive lengths of time.
Do not leave outgoing mail in your unprotected mailbox. Drop
your mail in a US Postal Service mailbox or other locked mailbox.
Do not to leave important information casually laying around your
home. For documents you only need occasionally, such as insurance
contracts or account listings, put these items in a fireproof safe or
lockbox. For documents you process on a regular basis, such as
monthly bills, keep these items in a locking desk or locking drawer,
especially if you have roommates, regular visitors or workers (house
cleaner, home nurse, baby sitter, etc.) come into your home. If you do
not have a locking desk or locking drawer, or do not have roommates or
regular visitors / workers, then at least do not leave your mail laying out
in the open. Put your important documents in a place that is not in a
common traffic area of your home.
If you do not already have a document shredder, invest in one.
When you are ready to discard old documents, such as canceled checks,
bank statements, credit card statements, etc. shred them before
disposing of them. Identity thieves can even use unsolicited credit card
offers and other junk mail. Shred them also.
When on the phone, do not give out personal information unless it
is necessary and you can confirm the person on the other end. For
example, if someone calls you saying that he or she is from your bank, it
is hard to confirm that it is really your bank. But if you initiate the call to
your bank, then it obviously would be bank personnel with whom you are
speaking.
On the Internet, do not respond to “spam” or unsolicited email.
This should prevent any installation of “spy ware” without your
knowledge. Some computer experts would warn not to even open email
from unknown sources, to protect you from computer viruses.
Use virus protection software on your computer at all times. On a
regular basis or when a new virus is announced, update the virus library.
When you order new checks, do not have them sent to your
unprotected mailbox. If you do not have a lockable mailbox, then have
the checks sent to the bank instead. You can pick them up from the
bank.
Create a list of all your account numbers, expiration date and
contact telephone numbers. Major credit issuers have special phone
numbers to call if your credit card is lost or stolen. Put this list in a safe
place in case you ever need to contact the creditors.
Around town:
It has been said that the best way to avoid becoming a victim of
pick pocketing is to keep your wallet in your front pockets. Keep purses
closed and fastened. Carry a purse with a strap over your neck and
shoulder, not just on your shoulder alone. Keep fanny packs zipped
closed, with the pouch worn on the front side of the body. Keep
backpacks zipped or latched closed. Under all circumstances, stay
aware of your surroundings and the people who are standing close to
you.
Do not carry your Social Security card, an excess number of credit
cards, birth certificate, or passport with you unless you will be using them.
Keep your wallet or purse in a safe place, whether at work, at
church, or at any social function.
When using an ATM machine, make sure that no one is standing
close by. Anyone who has real business at an ATM should show enough
courtesy to stand away while you are conducting your business. If
someone is standing too close, then a direct glare should be enough of a
signal that he or she is encroaching on your social space. Also, make
sure that you stand close enough to the machine so that your body
blocks any clear views of the key pad or touch screen.
Public telephones are often put in “telephone banks,” so people
may very well stand next to you without having any ill intent. However,
be aware of your surroundings when you are discussing sensitive
information. Talk in a way that would help muffle your voice, such as
holding your head downward or turning your back to someone while
speaking.
Other preventative actions:
Check your credit report every three months. This will give you
the ability to monitor any changes to your credit rating. See the listing
below for information on the three major credit-reporting companies.
Subscribe to a credit monitoring service. A service like this will
notify you within days, or even hours, of any changes to your credit
report.
Your Social Security number is tied closely to your personal
identity. Only give out your number when necessary. When possible,
ask to use another type of identification number.
Track the cycle of your monthly bills. You should receive your
recurring bills within the same 3 to 4 days every month. If you are
missing a bill, call to see if the issuer delayed the mailing. A missing bill
could be a signal that someone changed your billing address without
your consent.
Delete data files before you dispose of your old computer.
Deleting files using the commands available through your keyboard or
mouse may not completely erase the data. Although not evident, the
data is actually still on the hard drive. Files deleted in this manner will
still allow someone to retrieve a large amount of data. Instead, use a
utility software that is specifically designed to “wipe” the hard drive clean.
What if it happens to me?
If, by one way or another, you have found out that you have become a
victim of identity fraud or identity theft, the Federal Trade Commission
recommends the following four steps:
1. Place a “fraud alert” on your credit reports and review your credit
reports. Call any one of the three major credit-reporting companies with
a fraud alert. As soon as your fraud alert has been verified, the company
will notify the other two companies for you. All three credit-reporting
companies will send credit reports to you without charge. See the
information below for contact information.
2. Close any credit or checking accounts that have been tampered
with or opened fraudulently.
a. Credit accounts include accounts with banks, credit card
companies, phone companies, gas & oil companies, utilities, etc.
b. If you are closing existing accounts and opening new ones, use
new passwords and PIN’s.
c. If there are fraudulent charges or debits on new accounts, ask the
company for their fraud dispute form. The Federal Trade Commission
has an ID Theft Affidavit form available on the Internet for use on new
account fraud.
d. If there are fraudulent charges or debits on existing accounts, ask
the company for their fraud dispute form.
e. Complete the forms. Return the forms to the proper recipients,
and keep a copy of the form for your records.
f. If your checks have been stolen or misused, notify your bank
immediately. You should also notify the major check verification
companies. See the information below for contact information.
3. File a report with your local police or the police in the community
where the identity theft took place. Keep a copy of the crime report for
your records. You may need it to validate your claims to creditors.
4. File a complaint with the Federal Trade Commission. To file a
complaint or to learn more about the FTC’s Privacy Policy, go to www.
consumer.gov/theft or call 1-877-438-4338.
Another word of advice would be to document everything. Log the date
and time of phone calls to companies, along with the name of the person
with whom you spoke. Send all mail by Certified Mail and keep the
return card as proof of delivery. Save all of your receipts for expenses
incurred. They may be tax deductible as a casualty loss.
CREDIT REPORTING BUREAUS
Equifax
To order credit report: (800) 685-1111
To report fraud, call: (800) 525-6285 and write to:
P.O. Box 105069
Atlanta, GA 30348
Experian (formerly TRW)
To order credit report: (888) 397-3742
To report fraud, call: (888) 397-3742 and write to:
P.O. Box 9532
Allen, TX 75013
TransUnion
To order credit report: (800) 888-4213
To report fraud, call: (800) 680-7289 and write to:
P.O. Box 6790
Fullerton, CA 92834
CHECK VERIFICATION COMPANIES
TeleCheck – (800) 710-9898 or (800) 927-0188
Certegy – (800) 437-5120
International Check Services – (800) 631-9656
Note: You can also call SCAN to find out if the identity thief has been
passing bad checks in your name at (800) 262-7771.
About the author: Russell Tuncap is a Certified Public Accountant and a
Certified Management Accountant who lives in The Woodlands, TX. He
is self employed and can be reached at (281) 296-0922 or
russell@tuncap.com.
1 Reported on the U.S. Department Of Justice web site www.usdoj.
gov/criminal/fraud
2 “Identity Theft: The Aftermath – 2003” Key analysis was performed by
Dr. Dale Pletcher and Dr. Charles Nelson.
3 The complete report is available at www.idtheftcenter.org
4 Complete details can be found at www.ftc.
gov/bcp/conline/pubs/credit/idtheft.htm
5 The ID Theft Affidavit and instructions are available at www.ftc.
gov/bcp/conline/pubs/credit/affidavit/pdf
By Russell Tuncap, CMA, CPA
• In California, a woman is convicted of using a stolen Social Security
number to obtain thousands of dollars in credit and then filing for
bankruptcy in the name of her victim.
• In Florida, a woman was convicted of obtaining a fraudulent driver’s
license using the victim’s name, then using the license to withdraw more
than $13,000 from the victim’s bank account and charging another
$4,000 on five credit cards falsely obtained from five department stores.
• In another California case, a man was sentenced to 27 months for
obtaining private bank account information about an insurance company’
s policyholders and using that information to deposit $764,000 in
counterfeit checks into a bank account he established.
Unfortunately, with the new millennium, an old crime is experiencing a
resurgence with surprising speed. With more and more information being
stored on computer networks and databases, our personal lives and
identities are out there in “cyberspace.” The great majority of this
information is secure and protected. But to a growing number of
unscrupulous thieves, our information may be taken from us without our
knowledge to create an identity that steals, cheats, and lies. This crime,
as old as the Old Testament story of Jacob stealing his brother’s
blessing from their father Isaac, is identity theft. In 2003, an estimated
seven to ten million cases involving identity theft and identity fraud were
reported.
What is identity theft and identity fraud?
Sometimes used interchangeably, identity fraud or identity theft, is the
use of another person’s personal data to wrongfully and deceptively
profit at the victim’s expense. There are two types of identity theft. The
first, “identity fraud” sometimes called “application fraud” or “true name
fraud” is when the thief falsely opens new accounts using the victim’s
information. The second, “identity theft” or “account takeover” happens
when the thief uses an already existing account for criminal gain.
In the case of identity fraud, it could take weeks or even months to find
out that a crime has been committed. Often, the victim first learns of the
theft when a bill collector calls to demand payment. With identity theft,
the victim will discover the crime when they receive or review a bill or
statement.
How does identity theft or identity fraud occur?
People steal information from the rightful owners in several ways, from
simple to high tech methods.
In and around the home:
Delivered mail stolen from unprotected mailboxes. This could
include banking information on bank statements, credit card numbers
from statements, newly issued credit cards, “pre-approved” credit card
offers, insurance information, investment account information, etc.
Personal information left lying around the house. Identity theft or
fraud can be perpetrated either by someone who has broken into your
home or even by someone you have invited into your home. If you leave
bills, bank statements or other vital information lying around on the coffee
table or kitchen counter or at your home work station, then your
information may literally walk out the door.
Outgoing mail left in unprotected mailboxes. The flag on the
mailbox lets the letter carrier know that mail is in the box, but it also
signals the thief that important information may be there also. Typically,
outgoing mail will contain credit account numbers, phone numbers, utility
account numbers, etc. all accompanied with a paper check (with banking
information) accompanying the bill. If you mail out a credit account
application, then other information, such as proposed passwords and
credit references will be available.
“Dumpster diving,” or rummaging through trash for discarded but
important information is an activity that can produce credit applications,
discarded remittance statements from creditors, or other documents that
have valuable information on them.
Incoming telephone calls for every reason, from offering services
to “prize” distributions to asking for charity donations. Identity thieves
may even call posing to be government or business employees or
someone with a legitimate need for (and legal right to) the information.
They will try to talk you out of as much personal information as they can.
Alternatively, they might try to coerce or scare information out of you.
Such a scam would involve a thief posing as a utility company employee,
threatening to cut off your electricity because a payment was never
received. They offer to keep the power on and help to track down the
lost payment, if only you give them your banking information to process a
check-by-phone.
With the popularity of the Internet, identity thieves have found that
cyberspace is an appealing place to look for victims. For a number of
reasons, people respond to unsolicited e-mails, or “spam” that promises
them something beneficial but requests identifying data. Sophisticated
criminals from anywhere in the world can use the Internet to steal
information that will allow them to create or assume deceptive identities.
A computer hacker can install a type of computer program known as “spy
ware” on a computer without the knowledge of the owner. This program
looks for, and then transmits, passwords, accounts numbers, and other
information. Or in a scheme called “phishing,” the email will appear to
be from a legitimate source and request sensitive information, which the
victim supplies.
Around town:
The old-fashioned methods of getting your information is “purse
snatching” and pick pocketing. While these are low-tech methods, they
are still very effective on unsuspecting victims.
Using an ATM machine in public places. Thieves also practice
“shoulder surfing,” where they stand close enough to see your Private
Identification Number (PIN). Typically, banks provide a secure area for
ATM transactions, but more and more ATM’s are being placed in
convenience stores, shopping malls, and even fast food outlets. These
open and often congested machine placements are prime locations for
“shoulder surfing.” Sophisticated thieves may even use binoculars or
spyglasses to stay at a convenient distance while recording your PIN.
Using public telephones in an open area. Not only will thieves
watch for PIN codes being used to access long distance services, but
they may also stand close by, pretending to be using a phone. They will
listen as you give vital information, such as passwords or credit card
information. This can easily happen to you when making a hotel
reservation or purchasing tickets by phone.
Other methods that are not in your control:
Computer hackers can infiltrate a company’s database and steal
your personal information. Although most companies have protective
measures in place, it is always a game of one-upmanship between
thieves and honest society.
A disgruntled employee can steal your personal information, such
as a credit application or account numbers or passwords, and sell it to
identity thieves.
An actual theft of an organization can occur, with the target being
the files of the customers, students, clients, etc.
What happens with the information?
In the case of identity fraud, the thief may open new charge accounts
using your driver’s license number, Social Security number, birth date,
along with a false billing address so that you will never see the billing
statement. If they roughly resemble you, they may even apply for a new
driver’s license using their picture. They may sign up for new cell phone
services or buy long distance cards to resell. They may use your existing
credit history to take out new loans and never make a payment. They
may open up new checking accounts and write bad checks against the
accounts. They may sign a lease for either a short term or long-term
commitment, if there is immediate reward. They may even file for
bankruptcy to avoid paying the debts incurred under your name.
In the case of identity theft, the thief may simply start charging purchases
on your stolen credit card. They may initiate a change-of-address
process with credit card companies or department stores to keep you
from finding out the unauthorized charges for as long as possible. They
may write checks on your account or use debit card transactions to drain
your bank accounts. They may even give your name during a police
arrest. If they are released and then don’t show up, it will be you who the
police are after.
What happens to the victim?
In most cases, the Truth in Lending Act limits the consumer’s liability of
unauthorized charges on a credit card to $50, but you must meet certain
conditions. For other incurred debt, it can be much harder to mitigate the
damage. However, some creditors have their own credit protection plan
for their customers. But unfortunately, like the victims of so many
physical crimes, victims of identity theft and identity fraud are left
financially and emotionally hurting wondering “why” and “how much
longer.”
In a study released by the Identity Theft Resource Center, victims
experienced:
An emotional impact that is similar to feelings felt by victims of
rape, violent assault and repeated battering. Some victims reported
feeling dirty, defiled, embarrassed and undeserving of assistance. Other
victims reported a split with a spouse or significant other and being
unsupported by family members.
The average victim spends an average of 600 hours in time and
$1,400 in out-of-pocket expenses recovering from this crime. Often, the
recovery time drags out over a period of years.
Even after the thief stops using the information, the impact has a
lasting effect. Repercussions include increased insurance or credit card
fees, being denied for employment, being denied further credit (from
store accounts to home loans), battling bureaucracies in collection
agencies and credit reporting agencies, and even issuers who refuse to
clear records despite substantiating evidence of the crime.
About 85% of victims found out about the crime due to an adverse
situation, such as denied credit, denied employment, notification by
police or collection agencies, etc. Only 15% found out through pro-active
business’ that verified a submitted application or a change of address.
How do I prevent becoming a victim?
Like most situations in life, there are no guarantees. There is no
foolproof deterrent to identity theft or identity fraud, but by prudently
managing your personal information, you can lessen your chances of
becoming a victim.
In and around the home:
If your mailbox does not have a lock, try not to leave delivered mail
in your mailbox for excessive lengths of time.
Do not leave outgoing mail in your unprotected mailbox. Drop
your mail in a US Postal Service mailbox or other locked mailbox.
Do not to leave important information casually laying around your
home. For documents you only need occasionally, such as insurance
contracts or account listings, put these items in a fireproof safe or
lockbox. For documents you process on a regular basis, such as
monthly bills, keep these items in a locking desk or locking drawer,
especially if you have roommates, regular visitors or workers (house
cleaner, home nurse, baby sitter, etc.) come into your home. If you do
not have a locking desk or locking drawer, or do not have roommates or
regular visitors / workers, then at least do not leave your mail laying out
in the open. Put your important documents in a place that is not in a
common traffic area of your home.
If you do not already have a document shredder, invest in one.
When you are ready to discard old documents, such as canceled checks,
bank statements, credit card statements, etc. shred them before
disposing of them. Identity thieves can even use unsolicited credit card
offers and other junk mail. Shred them also.
When on the phone, do not give out personal information unless it
is necessary and you can confirm the person on the other end. For
example, if someone calls you saying that he or she is from your bank, it
is hard to confirm that it is really your bank. But if you initiate the call to
your bank, then it obviously would be bank personnel with whom you are
speaking.
On the Internet, do not respond to “spam” or unsolicited email.
This should prevent any installation of “spy ware” without your
knowledge. Some computer experts would warn not to even open email
from unknown sources, to protect you from computer viruses.
Use virus protection software on your computer at all times. On a
regular basis or when a new virus is announced, update the virus library.
When you order new checks, do not have them sent to your
unprotected mailbox. If you do not have a lockable mailbox, then have
the checks sent to the bank instead. You can pick them up from the
bank.
Create a list of all your account numbers, expiration date and
contact telephone numbers. Major credit issuers have special phone
numbers to call if your credit card is lost or stolen. Put this list in a safe
place in case you ever need to contact the creditors.
Around town:
It has been said that the best way to avoid becoming a victim of
pick pocketing is to keep your wallet in your front pockets. Keep purses
closed and fastened. Carry a purse with a strap over your neck and
shoulder, not just on your shoulder alone. Keep fanny packs zipped
closed, with the pouch worn on the front side of the body. Keep
backpacks zipped or latched closed. Under all circumstances, stay
aware of your surroundings and the people who are standing close to
you.
Do not carry your Social Security card, an excess number of credit
cards, birth certificate, or passport with you unless you will be using them.
Keep your wallet or purse in a safe place, whether at work, at
church, or at any social function.
When using an ATM machine, make sure that no one is standing
close by. Anyone who has real business at an ATM should show enough
courtesy to stand away while you are conducting your business. If
someone is standing too close, then a direct glare should be enough of a
signal that he or she is encroaching on your social space. Also, make
sure that you stand close enough to the machine so that your body
blocks any clear views of the key pad or touch screen.
Public telephones are often put in “telephone banks,” so people
may very well stand next to you without having any ill intent. However,
be aware of your surroundings when you are discussing sensitive
information. Talk in a way that would help muffle your voice, such as
holding your head downward or turning your back to someone while
speaking.
Other preventative actions:
Check your credit report every three months. This will give you
the ability to monitor any changes to your credit rating. See the listing
below for information on the three major credit-reporting companies.
Subscribe to a credit monitoring service. A service like this will
notify you within days, or even hours, of any changes to your credit
report.
Your Social Security number is tied closely to your personal
identity. Only give out your number when necessary. When possible,
ask to use another type of identification number.
Track the cycle of your monthly bills. You should receive your
recurring bills within the same 3 to 4 days every month. If you are
missing a bill, call to see if the issuer delayed the mailing. A missing bill
could be a signal that someone changed your billing address without
your consent.
Delete data files before you dispose of your old computer.
Deleting files using the commands available through your keyboard or
mouse may not completely erase the data. Although not evident, the
data is actually still on the hard drive. Files deleted in this manner will
still allow someone to retrieve a large amount of data. Instead, use a
utility software that is specifically designed to “wipe” the hard drive clean.
What if it happens to me?
If, by one way or another, you have found out that you have become a
victim of identity fraud or identity theft, the Federal Trade Commission
recommends the following four steps:
1. Place a “fraud alert” on your credit reports and review your credit
reports. Call any one of the three major credit-reporting companies with
a fraud alert. As soon as your fraud alert has been verified, the company
will notify the other two companies for you. All three credit-reporting
companies will send credit reports to you without charge. See the
information below for contact information.
2. Close any credit or checking accounts that have been tampered
with or opened fraudulently.
a. Credit accounts include accounts with banks, credit card
companies, phone companies, gas & oil companies, utilities, etc.
b. If you are closing existing accounts and opening new ones, use
new passwords and PIN’s.
c. If there are fraudulent charges or debits on new accounts, ask the
company for their fraud dispute form. The Federal Trade Commission
has an ID Theft Affidavit form available on the Internet for use on new
account fraud.
d. If there are fraudulent charges or debits on existing accounts, ask
the company for their fraud dispute form.
e. Complete the forms. Return the forms to the proper recipients,
and keep a copy of the form for your records.
f. If your checks have been stolen or misused, notify your bank
immediately. You should also notify the major check verification
companies. See the information below for contact information.
3. File a report with your local police or the police in the community
where the identity theft took place. Keep a copy of the crime report for
your records. You may need it to validate your claims to creditors.
4. File a complaint with the Federal Trade Commission. To file a
complaint or to learn more about the FTC’s Privacy Policy, go to www.
consumer.gov/theft or call 1-877-438-4338.
Another word of advice would be to document everything. Log the date
and time of phone calls to companies, along with the name of the person
with whom you spoke. Send all mail by Certified Mail and keep the
return card as proof of delivery. Save all of your receipts for expenses
incurred. They may be tax deductible as a casualty loss.
CREDIT REPORTING BUREAUS
Equifax
To order credit report: (800) 685-1111
To report fraud, call: (800) 525-6285 and write to:
P.O. Box 105069
Atlanta, GA 30348
Experian (formerly TRW)
To order credit report: (888) 397-3742
To report fraud, call: (888) 397-3742 and write to:
P.O. Box 9532
Allen, TX 75013
TransUnion
To order credit report: (800) 888-4213
To report fraud, call: (800) 680-7289 and write to:
P.O. Box 6790
Fullerton, CA 92834
CHECK VERIFICATION COMPANIES
TeleCheck – (800) 710-9898 or (800) 927-0188
Certegy – (800) 437-5120
International Check Services – (800) 631-9656
Note: You can also call SCAN to find out if the identity thief has been
passing bad checks in your name at (800) 262-7771.
About the author: Russell Tuncap is a Certified Public Accountant and a
Certified Management Accountant who lives in The Woodlands, TX. He
is self employed and can be reached at (281) 296-0922 or
russell@tuncap.com.
1 Reported on the U.S. Department Of Justice web site www.usdoj.
gov/criminal/fraud
2 “Identity Theft: The Aftermath – 2003” Key analysis was performed by
Dr. Dale Pletcher and Dr. Charles Nelson.
3 The complete report is available at www.idtheftcenter.org
4 Complete details can be found at www.ftc.
gov/bcp/conline/pubs/credit/idtheft.htm
5 The ID Theft Affidavit and instructions are available at www.ftc.
gov/bcp/conline/pubs/credit/affidavit/pdf
