Identity theft, the fraudulent use, and frequent destruction, of your good name and credit, is a growing epidemic. The number of identity theft complaints registered with the FTC and FBI last year was double the amount in 2001. This problem represented 43% of all consumer complaints, topping the government’s list of consumer fraud for the third year in a row. The Justice Department indicated that as many as 700,000 people in the US are victimized each year with an estimated average cost of $1,000 in expenses to the victims as they attempt to correct the damage.* As access to private information becomes easier, your chances of becoming a victim will continue to increase unless you make efforts to protect yourself. The potential to steal from you is considerable. Thieves take out credit cards, change the address of your existing cards and request duplicates, open cellular accounts, borrow from banks, lease cars, or even present false ID with your name to police and bail providers during an arrest. Needless to say, if you are a victim, correcting these problems can be very difficult.

HOW DO I HELP PREVENT BEING A VICTIM?

Be very careful what information you provide to others: The potential for falling victim to identity fraud is directly related to how readily available your personal information is to others. Key data thieves crave includes your social security number, date of birth, driver’s license number, mother’s maiden name, passwords and credit card numbers. There have been a number of scams where victims gave up sensitive information to seemingly legitimate companies or government agencies that asked for passwords or personal information in order to "confirm" their records. In many cases, thieves combine this information about you with other data they can gather from the internet to ultimately access your credit cards and bank accounts. You should always give out sensitive information sparingly and question why someone needs it. Be especially wary of someone who contacts you seeking this information. Refuse to give sensitive data to anyone who cannot completely justify why they need it. Consider doing business with someone else if the company you are dealing with, even if legitimate, demands too much sensitive information. Don’t carry your social security card in your wallet; it may only help a pickpocket further victimize you.

Destroy or shred offers of pre-approved credit or cash withdrawals: A common ploy for thieves is to search open mailboxes and/or garbage containers for discarded mailings offering pre-approved credit cards or blank checks that can be drawn on a credit card. Thieves can easily alter the address, establish an account in your name and relatively safely draw on your accounts. Because they use a different address and you don’t see a bill, you will likely never be aware of the theft until months later. Avoid letting mail accumulate in an open mailbox, shred or tear up offers from companies that extend credit, and be alert to a regular credit card or loan bill that you have not received. Better still, opt out of all new pre-approved credit card offerings.

Periodically check your credit: An insidious part of identity theft is that it can be happening to you now but you may not find out about it for months or even years. A periodic check of your credit reports will alert you to any credit activity that you did not authorize. In addition, take the time to contact the three main credit bureaus to request that they not share your personal information for promotional purposes. This is best done in writing; the list of credit bureau names and addresses is located below.

Avoid storing sensitive data on your computer: Even if you maintain good firewall and data security, get in the habit of using passwords that use both numbers and letters to guard all your sensitive data. Besides the obvious risk to data on laptops, all computers are occasionally available to "guest" users. The fact of the matter is that the unscrupulous guy you hired to clean your carpets may in fact be more interested in your computer than the jewelry in you drawer. When choosing passwords, never use a portion of your social security number or family birthdates or anniversaries.

WHAT DO I DO IF I AM A VICTIM?

Contact the fraud units at the three major credit bureaus: You can request that a fraud alert be put on your accounts to help prevent further access to your credit. While you are at it, order credit reports from all three credit bureaus in order to identify accounts that weren’t opened by you.

Close out accounts you think are fraudulent or have been tampered with: Immediately notify credit card companies, lenders and banks of your situation. When in doubt close the account. Fill out an ID Theft Affidavit or whatever form each lender or bank specifies. To be safe, immediately change all passwords on ATM, debit and credit cards.

Contact the police and file a report: If you are sure you are a victim, contact your local police. This serves two purposes, it notifies the police and provides you with a police report number to give to creditors. This is essential in demonstrating that you are a victim and not a deadbeat trying to avoid paying legitimate debts.

Clearing your credit can take many months depending upon the extent of the damage done. Every fraudulent account and charge will need to be resolved and you will need to work with all three credit bureaus to investigate and correct your credit history. The good news is you can get help. The section below provides a listing of resources and services you can use to help correct and hopefully prevent identity theft from happening to you. I encourage you to make a copy and keep it handy. You never know when you might need it.

Randy Gridley

February 2003

* Source, The Wall Street Journal

(February 2003)