A good deadbolt on your front door won't protect you from one of the more modern and sinister crimes out there: identity theft. Here's what you need to know to protect yourself.
What's Below:
How can my identity be stolen?
If my identity gets stolen, what can the thief do with my personal information?
Will I be held responsible if a thief uses my identity to commit a crime?
What can I do to protect my identity from theft?
What should I do if I discover that my identity has been stolen?
Are there any laws that specifically prohibit identity theft?
Someone could steal your identity very easily by:
- stealing your wallet
- filling out a change of address form for you and collecting your mail
- snatching your unshredded pre-approved credit slips from the trash
- ordering unauthorized credit reports on you by posing as a potential employer, landlord
- looking over your shoulder at phones and ATM's to gather PIN numbers (sometimes with binoculars or listening devices)
- using phony telemarketing schemes to con you into giving your personal data
- illegally tapping a computer at a business to which you have provided information or by which you have been granted credit (this is often done by dishonest or disgruntled employees), or
- gathering sensitive information and using it as a way to extract revenge (this is usually done by a former friend, lover, roommate or co-worker -- and it's more common than most people realize).
Perhaps the most frightening (and most thorough) way for a thief to steal someone's identity is by purchasing it at one of the identity search companies that have sprouted on the Internet. For as little as $49.99, these companies will sell you someone's Social Security number (the heart of identity theft), their mother's maiden name (the second most valuable piece of information), their home and employment address, their previous addresses, their credit history and more.
If my identity gets stolen, what can the thief do with my personal information?A lot. A thief can cash a check, obtain a loan, open credit accounts and charge them to the max, rent an apartment, buy a car, purchase a cell phone and talk to someone long distance all day, and, worse, commit a serious crime -- all in your name.
Will I be held responsible if a thief uses my identity to commit a crime?
Yes and no. From a monetary standpoint, if a thief uses your credit card in a credit scam, you'll likely be responsible for only $50, or possibly nothing. However, you may spend months hassling with credit agencies, financial institutions and police departments trying to clear your name and repair the lingering damage. Almost certainly you will have to take time off from work to write letters, make calls, collect evidence and demand action.
There is also the cost of anxiety and mental suffering to consider. Victims of identity theft report that policy agencies are sometimes dismissive or even abusive, credit reporting agencies unresponsive, credit collection agencies hostile, and credit grantors disbelieving.
When victims are actually accused of committing crimes, they are sometimes repeatedly detained by police and have trouble trying to convince law enforcement officials that the person they're holding is not the person they want.
What can I do to protect my identity from theft?
Minimizing the disaster of identity theft depends primarily on your vigilance in guarding your privacy. You've got to guard your personal information diligently. Here are some tips for keeping your private information secure:
- Never carry your Social Security card in your wallet.
- Don't have your Social Security number or your driver's license number pre-printed on your checks.
- Install a locking mailbox or a mail slot that goes directly into your house. Send your mail, especially payments, directly from the post office (don't put it in the mailbox for the postal carrier to pick up).
- Order your credit report every year. Promptly respond to any inaccurate information.
- Change your passwords and PIN numbers regularly. Don't use obvious codes such as birthdays, or the name of your spouse, child, or pet. Memorize passwords and PIN numbers and shred any piece of paper on which they are written.
- Diligently review credit card statements, phone, and utility bills. Call if you don't recognize a charge or phone call.
- Always take your credit card receipts, and never throw them away in public.
- Tear up any offers of pre-approved credit cards you don't intend to use and beware of offers from companies you don't recognize. It's easy to create an official-looking and completely phony credit application offering you pre-approved credit if you provide your Social Security number, mother's maiden name (for supposed security reasons), and a signature.
- Don't give personal information over the phone unless absolutely necessary, and don't ever give it unless you initiated the phone call. If someone calls who says they are calling from your bank or credit company, ask for a number to call them back -- and then make sure it's really an official number.
- Beware of anyone asking for your Social Security number. If they refuse to complete a transaction without it, consider taking your business elsewhere.
- Pick up your new checks from the bank instead of having them sent to your home.
- Don't put personal information on a computer home page or personal computer profile.
- If you find your personal information posted somewhere on the Internet, demand that it be removed.
What should I do if I discover that my identity has been stolen?
If someone steals your credit cards, driver's license, Social Security number, or any other type of identifying information about you, that person has stolen your identity. As soon as you are aware of the problem, you need to do the following:
Make an identity theft affidavit (and plenty of copies). The Federal Trade Commission has an official identity theft affidavit that you can use to alert different companies, including the major credit bureaus, your credit card companies, your banks, and so on. This helps you avoid having to fill out a different form for each company. You can download the affidavit atwww.consumer.gov/idtheft.
Contact the police. File a police report and keep a copy.
Cancel your credit cards, ATM cards, and phone cards. Notify your bank of the problem and close all existing bank accounts. Banks may require that you sign notarized affidavits stating that you have been a victim of fraud.
Call the credit bureaus. They can issue a fraud alert and attach a statement to your report. The major credit bureaus are:
- Equifax: www.equifax.com; 800-525-6285
- Experian: www.experian.com; 888-397-3742
- Trans Union: www.transunion.com; 800-680-7289
Tell the credit bureaus that you're an identity theft victim and request that they place a "fraud alert" note in your file as well as a victim's statement asking that creditors call you before opening any new accounts or changing your existing accounts.
Report stolen checks. Contact your bank and the following agencies:
- Equifax: 800-437-5120
- Telecheck: 800-710-9898
- International Check Service: 800-631-9656.
Alert the post office if you suspect the thief may have filed a change of address form in your name. That form will be an important piece of evidence for the police to follow.
Alert the utility and phone companies. They can close your existing accounts and be alert to attempted fraudulent uses. If you're having trouble getting fraudulent phone charges removed from your account, contact your state Public Utility Commission for local service providers or the Federal Communications Commission for long-distance service providers and cellular providers atwww.fcc.gov (or 888-CALL-FCC).
Consider having your Social Security number changed. Contact your local Social Security Administration for more information and check the SSA website (www.ssa.gov) to learn about this process.
Changing your Social Security number, however, should be a last resort. The Social Security Administration will change your number only if you fit their fraud victim criteria. In any case, a new number may not solve your problems and may even create new ones. For example, a new number does not ensure that you will get a new credit record because credit bureaus may combine the records from your old number with your new records.
If someone is using your driver's license number fraudulently, obtain a new number. You should be prepared to show proof of theft and damage.
Keep records. Keep short, dated notes of your conversations and interactions with everyone you notify of the theft. Make copies of all correspondence you send and receive relating to the theft.
Take control. Most important, you need to take control of the situation and not waste time waiting for someone else to step up and help you. Vigilance is essential. Do not pay bills that you are not responsible for. Be persistent with police, credit bureaus, credit card companies, and banks. Continue to call and write letters. Keep track of your efforts to stop the theft and reverse the damage.
Are there any laws that specifically prohibit identity theft?
Yes. In 1998, Congress passed the Identity Theft and Assumption Deterrence Act (18 U.S.C. § 1028). The Act makes the use of another person's identification with the intent to commit any unlawful activity a federal felony. Federal agencies -- including the U.S. Secret Service, the FBI, and the U.S. Postal Inspection Service -- investigate suspected violations of the Act. The U.S. Department of Justice handles prosecutions.
Additionally, many states have passed or are considering laws related to identity theft. Even if your state does not have a law specifically called an identity theft law, the issue is likely covered under other state laws. To see a list of state identity theft laws, go towww.consumer.gov/idtheft.
