|
How Identity Theft Occurs | How to Protect Yourself | What To Do if You are a Victim
HOW IDENTITY THEFT OCCURS
Despite your best efforts to manage the flow of your personal information or to keep it to yourself, skilled identity thieves may use a variety of methods - low- and hi-tech - to gain access to your data. Here are some of the ways imposters can get your personal information and take over your identity.
 |
They steal wallets and purses containing your identification and credit and bank cards. |
|
They steal your mail, including your bank and credit card statements, pre-approved credit offers, telephone calling cards and tax information. |
|
They complete a "change of address form" to divert your mail to another location. |
|
They rummage through your trash, or the trash of businesses, for personal data in a practice known as "dumpster diving." |
|
They fraudulently obtain your credit report by posing as a landlord, employer or someone else who may have a legitimate need for - and a legal right to - the information. |
|
They get your business or personnel records at work. |
|
They find personal information in your home. |
|
They use personal information you share on the Internet. |
|
They buy your personal information from "inside" sources. For example, an identity thief may pay a store employee for information about you that appears on an application for goods, services or credit. |
|
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.
|
HOW IDENTITY THIEVES USE YOUR PERSONAL INFORMATION
|
They call your credit card issuer and, pretending to be you, ask to change the mailing address on your credit card account. The imposter then runs up charges on your account. Because your bills are being sent to the new address, it may take some time before you realize there's a problem. |
|
They open a new credit card account, using your name, date of birth and SSN. When they use the credit card and don't pay the bills, the delinquent account is reported on your credit report. |
|
They establish phone or wireless service in your name. |
|
They open a bank account in your name and write bad checks on that account. |
|
They file for bankruptcy under your name to avoid paying debts they've incurred under your name, or to avoid eviction. |
|
They counterfeit checks or debit cards, and drain your bank account. |
|
They buy cars by taking out auto loans in your name. |
HOW TO PROTECT YOURSELF FROM IDENTITY THEFT
|
Get a copy of your credit report from each of the three major credit bureaus every year. It lists all of the lines of credit in your name. Check to be sure that everything is accurate, that all of the accounts are yours and that accounts you have requested to be closed are marked closed. Bureau reports cost around $8 each. However, if you have been turned down for credit, you are eligible for a free report. To order credit bureau reports, call:
|
|
|
Trans Union Credit Services |
800-888-4213 |
|
Equifax Credit Services |
800-685-1111 |
|
Experian Credit Services |
888-397-3742 |
|
|
Keep an eye on your accounts throughout the year by reading your monthly/periodic statements thoroughly. That is an easy way for you to be sure that all of the activity in your accounts was initiated by you. |
|
Tear up or shred pre-approved credit offers, receipts and other personal information that link your name to account numbers. Do not leave your ATM or credit card receipt in public trash cans. Crooks (a.k.a dumpster divers) are known to go through trash to get account numbers and other items that will give them just enough information to get credit in your name. |
|
If your credit card or other bills are more than two weeks late, you should do three things: First, contact the Postal Service to see if someone has forwarded your mail to another address. Second, contact your bank to ask if the statement or card has been mailed. Third, contact the businesses that send you bills. |
|
When you pay bills, do not put them in your mailbox with the red flag up. That is a flashing neon light telling crooks to grab your information. Use a locked mailbox or the post office. |
|
Protect your account information. Do not write your personal identification number (PIN) on your ATM or debit card. Do not write your social security number or credit card account number on a check. Cover your hand when you are entering your PIN number at an ATM. |
|
Do not carry your Social Security card, passport or birth certificate unless you need it that day. Take all but one or two credit cards out of your wallet, and keep a list at home of your account information and customer service telephone numbers. That way, if your wallet is lost or stolen, you will only have to notify a few of your creditors and the information will be handy. |
|
Never provide personal or credit card information over the phone, unless you initiated the call. Crooks are known to call with news that you have won a prize and all they need is your credit card number for verification. Do not fall for it. Remember the old saying, "if it sounds too good to be true, it probably is." |
WHAT TO DO IF YOU ARE A VICTIM
Sometimes an identity thief can strike even if you've been very careful about keeping your personal information to yourself. If you suspect that your personal information has been hijacked and misappropriated to commit fraud or theft, take action immediately, and keep a record of your conversations and correspondence. You may want to use the attached form [PDF only]. Exactly which steps you should take to protect yourself depends on your circumstances and how your identity has been misused. However, three basic actions are appropriate in almost every case.
Your First Three Steps:
First, contact the fraud departments of each of the three major credit bureaus.
Tell them that you're an identity theft victim. Request that a "fraud alert" be placed 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. This can help prevent an identity thief from opening additional accounts in your name.
At the same time, order copies of your credit reports from the credit bureaus. Credit bureaus must give you a free copy of your report if your report is inaccurate because of fraud, and you request it in writing. Review your reports carefully to make sure no additional fraudulent accounts have been opened in your name or unauthorized changes made to your existing accounts. Also, check the section of your report that lists "inquiries." Where "inquiries" appear from the company(ies) that opened the fraudulent account(s), request that these "inquiries" be removed from your report. In a few months, order new copies of your reports to verify your corrections and changes, and to make sure no new fraudulent activity has occurred.
Second, contact the creditors for any accounts that have been tampered with or opened fraudulently.
Creditors can include credit card companies, phone companies and other utilities, and banks and other lenders. Ask to speak with someone in the security or fraud department of each creditor, and follow up with a letter. It's particularly important to notify credit card companies in writing because that's the consumer protection procedure the law spells out for resolving errors on credit card billing statements. Immediately close accounts that have been tampered with and open new ones with new Personal Identification Numbers (PINs) and passwords. Here again, avoid using easily available information like your mother's maiden name, your birth date, the last four digits of your SSN or your phone number, or a series of consecutive numbers.
Third, file a report with your local police or the police in the community where the identity theft took place.
Get a copy of the police report in case the bank, credit card company or others need proof of the crime. Even if the police can't catch the identity thief in your case, having a copy of the police report can help you when dealing with creditors.
Your Next Steps
Although there's no question that identity thieves can wreak havoc on your personal finances, thereare some things you can do to take control of the situation. For example:
|
Stolen mail. If an identity thief has stolen your mail to get new credit cards, bank and credit card statements, pre-screened credit offers or tax information, or if an identity thief has falsified change-of-address forms, that's a crime. Report it to your local postal inspector. Contact your local post office for the phone number for the nearest postal inspection service office or check the Postal Service web site at www.usps.gov/websites/depart/inspect.
|
|
Change of address on credit card accounts. If you discover that an identity thief has changed the billing address on an existing credit card account, close the account. When you open a new account, ask that a password be used before any inquiries or changes can be made on the account. Avoid using easily available information like your mother's maiden name, your birth date, the last four digits of your SSN or your phone number, or a series of consecutive numbers. Avoid using the same information and numbers when you create a PIN.
|
|
Bank accounts. If you have reason to believe that an identity thief has tampered with your bank accounts, checks or ATM card, close the accounts immediately. When you open new accounts, insist on password-only access to minimize the chance that an identity thief can violate the accounts. In addition, if your checks have been stolen or misused, stop payment. You can contact the following major check verification companies to learn more about the services they provide in helping you track your stolen or misused checks.
|
SCAN |
1-800-262-7771 |
|
TeleCheck |
1-800-710-9898 or 927-0188 |
|
CrossCheck |
1-707-586-0431 |
|
Equifax Check Systems |
1-800-437-5120 |
|
International Check Services |
1-800-526-5380 |
If your ATM card has been lost, stolen or otherwise compromised, cancel the card as soon as you can and get another with a new PIN.
|
|
Investments. If you believe that an identity thief has tampered with your securities investments or a brokerage account, immediately report it to your broker or account manager and to the Securities and Exchange Commission.
You can file a complaint with the SEC by visiting the Complaint Center at www.sec.gov/complaint.shtml. Be sure to include as much detail as possible. If you do not have access to the Internet, write to the SEC at: SEC Office of Investor Education and Assistance, 450 Fifth Street, NW, Washington, DC 20549-0213, or call 202-942-7040.
|
|
Phone service. If an identity thief has established new phone service in your name; is making unauthorized calls that seem to come from - and are billed to - your cellular phone; or is using your calling card and PIN, contact your service provider immediately to cancel the account and/or calling card. Open new accounts and choose new PINs. If you are 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 at 1-888-CALL-FCC.
|
|
Employment. If you believe someone is using your SSN to apply for a job or to work, that's a crime. Report it to the SSA's Fraud Hotline at 1-800-269-0271. Also call SSA at 1-800-772-1213 to verify the accuracy of the earnings reported on your SSN, and to request a copy of your Social Security Statement. Follow up your calls in writing.
|
|
Driver's license. If you suspect that your name or SSN is being used by an identity thief to get a driver's license or a non-driver's ID card, contact your Department of Motor Vehicles. If your state uses your SSN as your driver's license number, ask to substitute another number.
|
|
Bankruptcy. If you believe someone has filed for bankruptcy using your name, write to the U.S. Trustee in the Region where the bankruptcy was filed. A listing of the U.S. Trustee Program's Regions can be found at www.usdoj.gov/ust, or look in the Blue Pages of your phone book under U.S. Government - Bankruptcy Administration. Your letter should describe the situation and provide proof of your identity. The U.S. Trustee, if appropriate, will make a referral to criminal law enforcement authorities if you provide appropriate documentation to substantiate your claim. You also may want to file a complaint with the U.S. Attorney and/or the FBI in the city where the bankruptcy was filed.
|
|
Criminal records/arrests. In rare instances, an identity thief may create a criminal record under your name. For example, your imposter may give your name when being arrested. If this happens to you, you may need to hire an attorney to help resolve the problem. The procedures for clearing your name vary by jurisdiction.
|
Information gathered from the Federal Trade Commission and the American Bankers Association
|
