What You Need to Know About Identity Theft

 

What Is Identity Theft?

Identity theft is a serious crime that is becoming more and more common. It occurs when someone uses your name, address, social security number, bank or credit card information without your knowledge to set up credit accounts, obtain loans, make purchases, or take other actions in your name. Identity theft is a criminal act of fraud.

If you become a victim of identity theft, it can take months and sometimes years to recover. Victims lose their good name and credit standing, are often turned down for loans, jobs, or insurance coverage, and in some cases are even arrested for crimes they didn't commit. Repairing the damage caused by identity theft is time consuming and burdensome, and it is the victim's responsibility to take the steps necessary to correct the problems created by these criminals.

Identity theft is a problem that is not going away, so it's important to stay informed. In this issue, we discuss the most common forms of identity theft, ways you can protect yourself, and what to do if you become a victim.

How Can My Identity Be Stolen?

The first step in avoiding identity theft is being aware of the methods used by identity thieves. Then you are better able to make decisions and take actions to protect yourself. Unfortunately, it is impossible to completely protect yourself from identity theft, but taking precautions to guard your personal information will certainly minimize your risk. We've listed some primary areas of risk below, as well as recommendations from the Federal Trade Commission (FTC) for steps you can take now to protect yourself.

 

Risks in the Workplace

How safe is your personal information in the workplace? A huge number of identity thefts occur here. Methods include everything from stealing or copying employee personnel files to hacking into a company's computer files to "dumpster diving", which is the familiar term for going through the trash of businesses looking for discarded personnel or client information.

What can you do? Ask your employer about the security procedures in place to make sure that they are adequate. If not, make suggestions for improvement. Perhaps your employer is simply not aware of the dangers that exist.

Risks on the Internet

As wonderfully convenient a resource as the Internet is, it's also a huge area of potential vulnerability when it comes to identity theft. "Skimming" or stealing credit or debit card account numbers and other personal data you enter online is just one way criminals operate on the web.

A lesser known method is "phishing", the act of sending e-mails that appear to be coming from a business you have a legitimate relationship with, requesting that you update your personal information with the company by clicking on a link contained in the body of the e-mail. The link takes you to a website that looks a lot like the real company's site; however, it is actually a website set up by scammers who will use the information you enter to steal your identity.

How can you protect your personal information online? Here are some important preventive measures:

  • Always keep your anti-virus software up to date. Consider subscribing to an anti-virus program that notifies you automatically when an update is available.
  • Download all security updates for your operating system, especially those that "plug" security holes in your Internet browser.
  • Use a firewall program. This is extremely important if you have a broadband connection to the Internet.
  • When submitting personal information online, make sure the website is secure. (Look for the "lock" icon at the bottom of your computer screen.)
  • Never, ever share your personal information with someone unless you are the one who initiated the contact.
  • Never download files before scanning them for viruses, and never follow hyperlinks sent to you by someone you don't know.

Risks from Your Telephone

"Pretexting" is a telephone scam. A scammer calls you, often posing as a representative from a survey firm, or as an employee from a legitimate company with authorized access to your account. They obtain personal information under these false pretenses and then sell the information to identity thieves.

How can you avoid the pretexting scam? Under no circumstances should you ever provide any personal information to a caller, no matter how legitimate the person seems. If you have a question about an account or wish to update your information, call the customer service number provided on invoices or other documentation you've received directly from the company you do business with. And please inform your elderly relatives and friends about this risk since senior citizens are frequently the targets of telephone scams.

Risks in Your Mailbox

Many identity thefts occur as a result of intercepted mail. Items you receive by mail everyday, such as bank account statements, pre-approved credit card offers, new checks, and tax documents, provide just the information about you that an identity thief is looking for.

This is more than just stealing mail from a person's mailbox. Some identity thieves will go as far as diverting your mail to a post office box by completing a change of address form. This is a way for the criminal to conceal for a longer period of time the theft of your identity and the fraudulent activities committed in your name.

How can you guard your mail? There are lots of practical things you can do. Here are a few:

  • Pick up your mail regularly. Don't let it sit in the box for several days. If you are going to be out of town, have the post office hold your mail until you return.
  • When paying bills or sending other confidential documents through the mail, drop the items into a post office collection box rather than leaving them in your unsecured mailbox at home.
  • Anytime you throw away mail or other papers containing personal information, shred them first!
  • Be conscious of whether you've received your normal monthly bills. If you notice you aren't receiving your bills on schedule, someone may have illegally changed your address. Contact the post office immediately if you suspect this.

Risks of Robbery

Did you know that when a thief steals your purse or wallet, it may not be your cash they're after?

In most cases, the identification, personal information, credit cards, and blank checks contained in a purse or wallet are much more valuable to a thief.

Another area where you could be at risk is in your own home. Stop for a moment to think about all the personal information kept in your home. If you have roommates, employ outside help or service contractors to perform work in your home, or if for any reason your home is accessible to strangers, be aware that you are vulnerable.

What security precautions can you take? Always keep your purse or wallet in a safe place, especially while at work, where many people let their guard down because the surroundings are familiar. Never carry your social security card in your purse or wallet. Never write down personal identification numbers (PINs) and store them in your wallet. Finally, lock up confidential information you keep at home. A small investment in a locking file cabinet or security box could save you from having to endure many financial headaches in the future!

How Can I Tell If My Identity Has Been Stolen?

One of the biggest problems with identity theft is that when your identity has been stolen, you might not learn about it for months. This gives the thief time to do immense damage to your good name and financial reputation. The best way for you to stay on top of identity theft is to track your credit and personal financial history on a regular basis. Here are some steps you can take to stay informed about what's going on with your financial accounts:

  • In the state of Georgia, you can receive two free credit reports. Request your credit reports, and then review them for accuracy. If you notice any unusual records or incorrect personal information, research the problem! It could be as simple as a typographical error, but it could also indicate identity theft.
  • Review your bank account statements on a regular basis. Watch for any odd transactions, withdrawals, or charges.
  • If you receive a credit card for which you have not applied, be alarmed! Call the credit card company immediately to determine who set up the account and then begin the steps to report the theft of your identity (listed in the next section).
  • If you are denied a credit card or loan for no apparent reason, you may be the victim of identity theft. Inquire as to why and investigate the issue thoroughly.
  • Be very suspicious if you begin receiving calls from debt collectors regarding accounts you have never heard of. This may be the most obvious indication of identity theft, and is usually the point at which a victim realizes their identity has been stolen.

Important First Steps To Take If Your Identity Has Been Stolen

  1. Contact one of the three national credit bureaus to place a "fraud alert" on your credit file. (When you contact one of the three main credit bureaus, the other two are automatically contacted regarding your account.) A fraud alert requires creditors to contact you directly before opening any type of credit account. You will also receive credit reports at no cost from each bureau. 
  2. Immediately close any unauthorized accounts opened in your name. Complete an Identity Theft Affidavit. (You can access this form from the Federal Trade Commission's website, www.consumer.gov/idtheft.) This document will inform creditors that you did not create the debt owed to their company. Keep in mind that you will still need to contact each company directly since some companies will accept the ID Theft Affidavit as proof of fraud, while others will require additional documentation. Completing this form does not guarantee that the fraudulent debts will be cleared or that the identity theft will be prosecuted. However, completing the ID Theft Affidavit immediately when you learn that your identity has been stolen is an important step in the right direction.
  3. File a police report. Request a copy of the report for you to keep. Additionally, creditors may request a copy to initiate the fraud reporting process.
  4. File your identity theft complaint with the FTC. The FTC maintains a database of identity theft victims, which aids law enforcement agencies investigating identity theft.

Investigating Identity Theft

Here are some pointers to remember if you ever have the unfortunate task of investigating the theft of your identity:

  • When investigating your case, try to find out as much as possible about the person who has stolen your identity. You will then be able to share this information with the police and the FTC.
  • Follow up in writing to all of the companies involved and save all of your documents.
  • Keep a list of contacts to whom you have spoken. By doing so, you'll have a starting point if another fraudulent transaction occurs.

Below is the contact information for each of the three national credit bureas: