Identity Theft

The financial crime known as "identity theft" is on the rise. Identity theft occurs when someone
appropriates your personal information without your knowledge to commit fraud or theft. It can
happen when the identity theft involves acquiring key pieces of someone’s identifying information, (i.e., name and social security number) in order to impersonate them.

Using a variety of methods, criminals steal credit card numbers, driver's license numbers, Social Security numbers, ATM cards, telephone calling cards and other key pieces of individuals' identities. They use this information to impersonate their victims, spending as much money as they can in as short a time as possible before moving on to someone else's name and account information.

Unfortunately, you may not find out that your identity has been stolen until you receive bills for credit card accounts that you never opened, debts that you never incurred, or charges on your bills that you didn't sign for, authorize, or know anything about. By the time most identity theft victims learn what has happened, their credit is ruined and bill collectors are hounding them.

Facts about identity theft

The key findings of a report entitled ¡°Nowhere to Turn: Victims Speak Out on Identity Theft,¡± published in May 2000 by the consumer advocate organizations CALPIRG (California Public Interest Research Group) and the Privacy Rights Clearinghouse noted:

The average amount of time it took victims to resolve their cases was nearly 2 years (23 months).
The average total fraudulent charges on new and existing accounts of those surveyed was $18,000.
Victims spent an average of 175 hours and $808 in out-of-pocket costs (not including lawyer's fees) trying to fix their problem.
76% of the respondents who contacted the police found them to be unhelpful; 60% found credit bureaus, banks, and department stores unhelpful.
45% of the reported cases involved the victim's driver's licenses.
15% of the respondents noted that there was a criminal investigation or warrant for their arrest due to their identity theft.

How can someone steal your identity?

By co-opting your name, Social Security number, credit card number, or some other piece of your personal information for their own use. In short, identity theft occurs when someone appropriates your personal information without your knowledge to commit fraud or theft.

How identity thieves get your personal information:

They go through your trash can looking for straight cut or unshredded papers.
They steal wallets and purses containing your identification and credit and bank cards
They steal your mail.
They complete a "change of address form" to divert your mail to another location.
They buy the information either on the Internet or from someone who might have stolen it.
They steal it from a loan or credit application form you filled out or from files at a hospital, bank, school, car lot or business that you deal with. They may have obtained it from dumpsters outside of such companies.
They get your business or personnel records at work
They get it from your computer, especially those without firewalls.
They may be a friend or relative or someone who works for or with you who has access to your information.
They listen in on conversations you have in public.

How to Prevent Identity Theft

Always shred pre-approved credit applications, credit card receipts, bills and other financial information you don’t want before throwing into the trash.
Quickly remove mail from your mailbox or use a P.O. box. Deposit outgoing mail at the post office or in another secure receptacle.
Regularly check your credit report for unauthorized accounts.
Ask questions of businesses you deal with as to how your information will be used and disposed of once no longer needed.
Always use a firewall and virus protection on your computer if connected to the Internet. Keep all programs updated, including your operating system (i.e., Windows 98,
XP, etc.)
Do not allow anyone you don’t fully trust access to your computer or personal information.
Be aware of your surroundings when you have conversation in public.

Check your credit report every year!

One of the best ways to detect your identity theft is checking your credit reports frequently. There are three major credit reporting bureaus that keep information about your credit history--loans, credit cards, mortgages, etc--.on file. You can order a copy of your reports from any or all three bureaus at any time. By monitoring your credit report, you can make sure no one else has been using your credit.

Credit monitoring service companies make this process easier by notifying you any suspicious activities on your credit file.

To learn how to protect yourself and monitor your credit reports, see "Credit Monitoring."

If you're a victim of identity theft, click here for more information