What is Identity Theft?
Identity theft involves acquiring key pieces of someone's identifying information, such as name, address, date of birth, social security number, and/or mother's maiden name in order to commit, aid, or abet any crime. This information enables a thief to commit various types of fraud, including taking over financial accounts of victims, opening new accounts, making purchases, applying and getting loans or other benefits, renting apartments, establishing utilities, or committing crimes under another's identity.
Here are some of the basic forms of identity theft:
- THEFT OF FINANCIAL INFORMATION - someone steals existing account information, such as a credit card or bank account, or opening a new account under a false name.
- BENEFIT FRAUD - obtaining money or benefits, such as Social Security, medical insurance, or welfare, using someone else's identity.
- CRIMINAL IDENTITY THEFT - committing a crime using someone else's identity. Many victims are unaware of this until being pulled over for a traffic violation and discovering there is a warrant for their arrest.
- IDENTITY CLONING - assuming someone else's identity. This may include using professional licenses or working under someone else's name. Many victims only discover this around tax time when the IRS reports that they have much more income than the individual earned.
- BUSINESS IDENTITY THEFT - to defraud or hurt a business - usually financially
There are many ways that thieves can steal your information:
- DUMPSTER DIVING - Thieves go through your trash or the trash behind businesses to obtain information.
- SKIMMING - Thieves copy your credit card information by hand or with a machine. This can happen any time that your credit card is out of your sight, such as when paying for a bill at a restaurant. In this case, you can still have your credit card and thieves can still use it.
- PHISHING - E-mails or pop-up adds that request you to provide personal and/or financial information. These often appear to be legitimate e-mails from a bank, etc.
- UNLOCKED MAILBOXES (Also called "red-flagging") - thieves check mailboxes for outgoing or incoming mail that includes checks, credit card offers, etc. Thieves can chemically erase certain inks and fill in the "Pay to the Order of" and amount sections on a check, while leaving a valid signature. Thieves also take credit card offers and open the accounts themselves.
- THEFT OF WALLET, CHECKBOOK, PDA, OR COMPUTER
- TAKING INFO FROM UNSECURED INTERNET WEBSITES
- SHOULDER SURFING/EAVESDROPPING
- DATA COLLECTION DEVICES - high tech theft - keynote loggers, skimmers, and camera phones, computer viruses
- THEFT BY FAMILY/FRIENDS/ACQUAINTANCES
- BUSINESS RECORD THEFT - employees stealing or selling customer information, etc.
- FRAUDULENT CALLS OR MAIL - requesting funds over the phone or in the mail for fraudulent purposes (i.e. false charities, etc.)
- CHANGE OF ADDRESS - mail is misdirected because of a change or lack of change of an address or thieves change your address.
Prevention & Detection
While it is impossible to completely eliminate your risk, there are many ways to reduce the risk of becoming a victim of identity theft, or to minimize the impact if your information is compromised.
- DO NOT carry your social security card with you. It should be locked in a secure place and used only when absolutely necessary, such as when you obtain a new job or apply for benefits. If someone requests your SSN, ask why it is needed and how it will be used and protected.
- DO NOT send identifying information via e-mail at all or to any site you do not know and trust.
- DO NOT give out personal information on the phone, through the mail, or over the internet unless you know with whom you are dealing.
- DO NOT respond to unsolicited mail, spam, or pop-ups. If you receive an e-mail that appears to be from your bank, contact your bank directly - do not respond to or click on a link in an e-mail.
- DO shred information that is no longer needed with a cross-shredder. (Using a shredder that gives straight strips is too easy for thieves to reassemble to get your information.)
- DO keep all personal information secure
- DO NOT leave checks in an unlocked mailbox. Drop mail off directly at the post office. If possible, obtain a locked mailbox or PO Box so incoming mail cannot be stolen.
- DO NOT use obvious passwords like date of birth, mother's maiden name, or the last four digits of your social security number.
- DO use a combination of numbers, upper and lower case letters, and special characters to create passwords.
- DO routinely monitor your accounts and credit reports for unauthorized activity.
- DO avoid telemarketing, contest/sweepstakes entries, chances to win, etc. Also, if you did not enter a sweepstakes contest, you did not win! Do not respond to e-mails telling you that you have won a contest.
- DO use computer safeguards, such as pop-up blockers, anti-spyware, and anti-virus programs, etc.
- DO monitor your accounts online when possible. You can catch unauthorized use much more quickly.
- DO use caution when making Internet or E-Bay purchases.
- DO carry only cards that are essential.
- DO NOT use a ball point pen to sign checks; the ink can be erased. Instead use a gel pen.
- DO ensure that checks have security features.
- DO opt out of credit card offers and put your phone numbers on the Do Not Call list
- DO stop your mail or put a hold on your mail if you will be out of the area.
- DO NOT put the flag up if you have outgoing mail.
- DO obtain your free credit report annually.
- DO look for security features online: a padlock and https://
- DO follow established practices for online auctions.
- DO designate one credit card for online purchases. This should NOT be a debit card that is directly connected to your bank account.
If you become a victim of identity theft, swift and well documented action is essential to reduce the impact. The sooner that identity theft is discovered and action is taken, the less financial and time loss to the victim.
MAINTAINING DETAILED, ORGANIZED, AND THOROUGH RECORDS IS VITAL
Close any accounts that were accessed or compromised.
Keep a detailed log of all contacts with agencies including date and time of calls, copies of all written correspondence (both sent and received), etc. Report the fraud to the major credit bureaus.
Create a fraud alert on your credit reports.
Request your free copies of your credit report. Your credit report is free if you are a victim of fraud.
Complete the FTC ID Theft Complaint form and report to the FTC.
Report to law enforcement and get copies of the police report.
Request information on fraudulent accounts. Share this information with law enforcement.
Contact additional fraud departments for creditors on affected accounts.
Review credit reports. Contact credit bureaus if there is any inaccurate information.
Document with follow-up letters. Send letters certified mail with a return receipt.
Notify the US Postal Inspector if your mail has been stolen or tampered with.
Get your free annual credit report at www.annualcreditreport.com
- Identity Theft Resource Center
www.idtheftcenter.org Learn how to prevent ID theft, read alerts on the latest scams, and find a victim assistance group in your area on the Identity Theft Resource Center website.
- Fight Identity Theft
www.fightidentitytheft.com A site with educational basics on ID theft, you can read news, sign up for a newsletter, and get tips on theft prevention.
- Federal Trade Commission (FTC)
www.consumer.gov/idtheft The identity theft center produced by the Federal Trade Commission offers a wealth of information for preventing and dealing with identity theft. The "ID Theft Affidavit" allows you to send companies an alert that a fraudulent new account has been opened in your name.
- Social Security, Office of the Inspector General
www.ssa.gov/oig If your Social Security number is being misused, you can report it to the Office of the Inspector General, the agency that investigates Social Security Administration related fraud.
- Privacy Rights Clearinghouse
www.privacyrights.org The Privacy Rights Clearinghouse has a collection of useful resources and first-hand victim accounts in its identity theft section.
- US Postal Inspection Services
www.usps.com or call 1-800-275-877 (1-800-ASK-USPS)
- Internal Revenue Service (IRS)
- Internet Crime Complaint Center