Identity theft happens when someone gets your personal information and makes purchases, financial transactions and other unlawful activities under your name. Identity theft is a federal crime. The crime of identity theft is rising and can cost banks, financial institutions and consumer’s time and money.
Thieves steal and fraudulently use the names, addresses, social security numbers, bank account information, credit card numbers and other personal information. Identity thieves frequently open new accounts in the name of the identity they have stolen. They apply for new credit cards using this information, make charges, and leave the bills unpaid. It is also become to see telephone and utility service set up under stolen identities. Thieves will also often access existing accounts of the stolen identity. They may take money from their bank accounts; make charges on the credit cards, and use checks and credit to make down payments for loans and purchase goods and services. Some thieves will also use the stolen identity when they’re arrested.
Some figures have shown that as many as four out of five victims have no idea how an identity thief obtained their personal information. Unfortunately, thieves often use a stolen identity again and again. It is very common for victims to learn that thieves have opened and accessed numerous accounts, often over a long span of time.
Methods of Identity Theft
Among those who think they know what happened, many believe the identity theft occurred when their purse or wallet was stolen or lost. There are a variety of identity theft crimes taking place daily. The simplest ones may involve stealing a wallet, or digging through your trash. The thieves will steal wallets and purses; information from your mailbox, including bank and credit card statements; pre-approved credit offers; and new checks or tax information. They steal personnel records from their employers, or bribe employees who have access. Thieves stealing identities by “dumpster diving” do it at homes and places of employment. Mail can be stolen from your home mailbox, from a drop-box, at businesses, and even directly from postal workers. Home computers can be infected with viruses that transmit your data to thieves.
More sophisticated methods include targeting the information of the deceased through the use of obituaries, stealing or diverting your mail and obtaining credit card or bank account information via pretexting, skimming, phishing and pharming.
Pretexting is a method of identity theft that is on the rise. The identity thief poses as a legitimate representative of a survey firm, bank, Internet service provider, employer, landlord, or even a government agency. The thief contacts you through the mail, telephone, or e-mail, and attempts to get you to reveal your information, usually by asking you to verify some data.
Skimming is a high-tech theft that uses an electronic device to steal credit card or bank account information. Skimming generally occurs when your credit card is used to make a purchase, and the person processing your card uses a skimmer to capture personalized access information. It has also been found on ATMs. They steal credit/debit card numbers by attaching a special storage device to the swiping mechanism, and/or keypad overlay, that will download your account information and possibly your PIN, so that your card can later be duplicated and used for purchases and/or withdrawals.
Phishing is one of the most widely publicized methods of personal identity theft. Phishing is a form of online identity theft that lures consumers into divulging their personal financial information to fraudulent web sites. Phishing is a scheme used by fraudsters – posting as a trusted financial institution, ATM/debit network, credit card company, online retailer or other service provider – to trick unsuspecting individuals into disclosing personal and/or financial information. Phishers create a website that looks very similar to the site of a legitimate enterprise. The phisher sends an email message out to lure unsuspecting individuals to to click on the link to a bank’s web site to confirm his account information. The unsuspecting customer enter their personal data, which is then used by the thieves. The phisher can then use this information to clean out the victim’s bank accounts or commit other forms of identity theft.
Pharming is similar to phishing but more sophisticated. Pharmers also send emails. The consumer, however, can be duped by the pharmer without even opening an email attachment. The consumer compromises his personal financial information simply by opening the email message. The pharming email message contains a virus or malicious software that installs a program on the user’s computer. Subsequently, when the consumer tries to visit an official web site, the pharmer’s software program redirects the browser to the pharmer’s fake version of the web site. In this way, the pharmer is able to capture the personal financial information that the consumer enters into the counterfeit web site, and the consumer’s account is again compromised. Since little or no participation on your part is necessary, and the redirect happens behind the scenes, pharming is extremely difficult to detect.
More Financial Scams
Fraudulent address change requests. With this scam, identity theives divert your billing statements to another location by completing a change of address form. Once the change takes place, thieves either use the new address to create a false identity or use your mail to steal account information.
ATM tampering. Thieves tamper with ATM in various ways in order to steal your personal information and tap into your accounts. A perpetrator may attach a device that blocks the cash slot. When you do not receive your cash, you are likely to cancel the transaction and leave. However, the cash has already been dispensed, and the fraudster will then approach the machine and remove the device to get the money.
Prize and lottery scams. In these scams a caller or letter states you won a big lottery prize but you must send money before you can collect. Scam artists pressure you for an answer, saying the offer will expire or go to the next person if you don’t act now. Legitimate lottery and sweepstakes administrators never charge fees to deliver your prize. If you send money, you are pretty much guaranteed that you will never get it back.
Avoiding Identity Theft
Being the victim of identity theft can be extremely devastating not only because it’s your money being stolen, but your name. Identity thieves can be very skilled at finding their targets and then exploiting their findings. For this reason, to protect yourself you need to stay all the more alert and knowledgeable. There are several steps you can and should take to protect yourself if you are a victim of identity theft. Some of the precautions that can be used to minimize the chances of being a victim of identity theft include;
Protect your social security number. You social security number is a critical piece of personal information. Do not print your social security number on any form of personal identification. Never have it printed on your checks; simply write it on the check in the rare occasions it’s needed. Never carry your social security card in your wallet, and avoid using your social security number as a personal identifier if at all possible.
Protect your inbound and outbound mail. To make your mailbox a less attractive target for identity thieves, try to reduce the amount of unsolicited offers. Opt out of pre-approved credit card offers and insurance by calling 888-5OPT-OUT or by logging onto https://www.optoutprescreen.com. Choose five-year or permanent opt out. When you do receive offers in the mail, shred them before you discard them.
Remember to cancel mail delivery when you go on vacation. If you don’t, that mountain of mail makes a tempting target. Outgoing mail requires protection too. When you write a check and mail it to your credit card company, don’t include information that is complete enough for someone to use: only write the last four digits of your account number – your credit card company has all the information they need to identify you.
Protect what you discard. Shred documents that have your name, social security number, bank account numbers, credit card numbers, driver’s license data, or other private information before throwing them out. The items you discard, including credit card offers, ATM receipts, bank statements, credit statements/receipts and utility bills, all contain personal information. With a bit of effort, thieves can collect this information and use it to steal your identity. When you discard of old credit cards, be sure to destroy them completely first.
Becareful of inbound telephone calls and solicitors. Never offer financial or personal information to people over the phone, through the mail, or over the Internet, unless you know them well. High-pressure callers often trick people into demanding personal information with scams that promise cheap vacations or programs for winning prizes and awards. To avoid these scams, never provide personal information over the phone if you did not initiate the call. To limit the number of these calls you receive, ask the callers if you can join the do-not-call list. When you do receive a call, simply hang up.
Protect your computer. Never respond to unsolicited requests for personal information and always use virus protection. Guard your computer with a password, change it frequently and don’t share your password with anyone. From time to time, search the internet for your name and the last four digits of your SSN. You never know what you might find.
Safeguard your purse or wallet. Keep your wallet, checkbook, credit card, driver’s license, and social security card in secure places and be careful when you use them in public. Thieves can look over your shoulder or distract you to memorize key information. Photocopy everything in your wallet, including credit card numbers and the contact numbers of the issuers, and store this information in a secure location. If your wallet is lost or stolen, all the information you’ll need to cancel your credit cards will be readily accessible.
Always report suspicious activity involving your accounts and transactions. Review your credit report at least once a year and contact your creditors immediately if you note suspicious activity.
Responding to Identity Theft
If you become a victim of identity theft or fraud, act immediately to minimize the damage to your personal funds and financial information. Make sure to document your actions and all contacts. Keep copies of correspondence and documents related to the theft. Write letters to confirm all phone conversations. Make notes of everyone you speak with; ask for names, department names, phone extensions and record the date you speak with them.
Inform your bank if your wallet or purse was stolen or lost. Tell them what bank account information, including account numbers, ATM cards, or checks it contained. Cancel checking and savings accounts and open new ones. Place stop-payment orders on any outstanding checks that may not have cleared. Get a new ATM card, account number, and PIN or password.
Contact all financial institutions where you have accounts that an identity thief has taken over or that were created in your name but without your knowledge.
File a police report and get a copy of the report to be used if need to show proof of the crime.
Contact the fraud departments of the three major credit bureaus:
Equifax
www.equifax.com
To report fraud;
call: 800-525-6285
Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
To order a report;
call: 800-685-1111
Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
Experian
www.experian.com
To report fraud
call: 888-397-3742
Experian
P.O. Box 9530
Allen TX 75013
To order a report;
call: 888-397-3742
Experian
P.O. Box 2002
Allen TX 75013
Trans Union
www.transunion.com
To report fraud
call: 800-680-7289
Trans Union
Fraud Victim Assistance Division
P.O. Box 6790
Fullerton, CA 92634
To order a report;
call: 800-888-4213
Trans Union
P.O. Box 1000
Chester, PA 19022
Contact the Federal Trade Commission (FTC) to file a complaint. You can access the FTC Identity Theft site Online at http://www.consumer.gov/idtheft, call toll-free at 1-877-IDTheft (877-438-4338) or TDD at 202-326-2502, or send mail to Consumer Response Center, FTC, 600 Pennsylvania Avenue, N.W., Washington, DC 20580.
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