Identity Theft
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What is identity theft?
"Identity theft" refers to crimes in which someone wrongfully obtains and uses another person's personal data (i.e., name, date of birth, social security number, driver's license number, and your financial identity— credit card, bank account and phone-card numbers) in some way that involves fraud or deception, typically for economic gain (to obtain money or goods/services). Criminals also use identity theft to fraudulently obtain identification cards, driver licenses, birth certificates, social security numbers, travel visas and other official government papers. 
Unlike your fingerprints (which are unique to you and can't easily be given to, or stolen by, someone else for their use), your personal data can be used, if it falls into the wrong hands, allowing criminals to profit at your expense. Plus, according to the FTC, —on average, most victims don't even know their identity has been stolen until more than a year later.
Identity theft can have devastating consequences for you, as the victim, who may face long hours of closing bad accounts, opening new ones, and repairing your wrecked credit record. And, it may take significant out-of-pocket expenses to clear your good name. In the meantime, you may be denied jobs, loans, education, housing, and cars, or even get arrested for crimes you didn't commit. Unfortunately, the experience of thousands of victims is that it often requires months, and even years, to navigate the frustrating, identity-recovery process.
How identity thieves GET
your personal information:
Identity thieves can use a variety of high/low tech means to gain access to your personal information. Here are some of the ways these imposters can get your personal information and take over your identity—
- Business Record Theft: They get your information from businesses or institutions by stealing files out of offices where you're a customer, employee, patient or student; or bribing an employee who has access to your files; or even "hacking" into the organization's computer files.
- Shoulder Surfing: A "shoulder-surfing" identity thief, standing next to you in a checkout line, can memorize your name, address and phone number during the short time it takes you to write a check. An identity thief can stand near a public phone and watch you punch in your phone or credit card numbers (or even listen in when you give your credit-card number over the phone for a hotel room or rental-car.)
- Dumpster Diving: They rummage through your trash, or the trash of businesses, and landfills for personal data.
- Under the Color of Authority: They fraudulently obtain credit reports by abusing their employer's authorized access to credit reports, or by posing as landlords, employers or others who may have a legitimate need/right to the information.
- Skimming: They steal your credit/debit card account numbers as your card is processed at a restaurant, store or other business location, using a special data collection/storage device (".)
And through other forms of
old-fashioned fraud and theft...
- Stealing wallets and purses containing identification and credit and bank cards.
- Stealing mail, including bank and credit card statements, pre-approved credit offers, new checks, or tax information.
- Completing a "change of address form" to divert your mail to another location.
- Stealing personal information from your home.
- Using personal information you share on the Internet.
- Scamming information from you, often through email, by posing as legitimate companies or government agencies.
How identity thieves USE
your personal information:
- Go on spending sprees using your credit and debit card account numbers to buy "big-ticket" items like computers that they can easily sell.
- 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.
- 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.
- Buy cars by taking out auto loans in your name.
- Establish phone or wireless service in your name.
- Counterfeit checks or debit cards, and drain your bank account.
- Open a bank account in your name and write bad checks on that account.
- File for bankruptcy under your name to avoid paying debts they’ve incurred under your name, or to avoid eviction.
- Give your name to the police during an arrest. If they’re released from police custody, but don’t show up for their court date, an arrest warrant is issued in your name.
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How can I tell if I'm a victim of identity theft?
- Monitor the balances of your financial accounts. Look for unexplained charges or withdrawals.
- Other indications of identity theft include:
- failing to receive bills or other mail, which may signal an address change by the identity thief,
- receiving credit cards, and/or statements of accounts, for which you did not apply
- a lender tries to repossess a car you didn't know you owned
- being contacted by the police after a crime is committed in your name.
- being denied credit for no apparent reason...
If you're ever denied credit, FIND OUT WHY, especially if you haven't reviewed your credit report lately. This may be the first indication you get that someone has stolen your identity and is racking up charges in your name.
- receiving calls or letters from debt collectors or businesses about merchandise or services you did not buy.
REACT QUICKLY if a creditor or merchant calls you about charges you didn't make. This, too, may be the first notice you get that someone has stolen your identity. Get as much information from them as you can and investigate immediately.
Although any of these indications could be a result of a simple error, you should not assume that there's been a mistake and do nothing. Always follow up with the business or institution.
If you think your identity has been stolen, here's what to do:
- Contact the fraud department of any one of the three major credit bureaus to place a "fraud alert" on your credit 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. As soon as the credit bureau confirms your fraud alert, the other two credit bureaus will be automatically notified to place fraud alerts, and all three credit reports will be sent to you free of charge.
Contact the fraud department of any of the three major credit bureaus:
Equifax - www.equifax.com
To order your report, call: 800-685-1111 or write:
P.O. Box 740241, Atlanta, GA 30374-0241
To report fraud, call: 800-525-6285 and write:
P.O. Box 740241, Atlanta, GA 30374-0241
(Hearing impaired calls: 1-800-255-0056 and ask the operator to call the Auto Disclosure Line at 1-800-685-1111 to request a copy of your report.)
Experian - www.experian.com
To order your report, call: 888-EXPERIAN (397-3742) or write:
P.O. Box 2002, Allen TX 75013
To report fraud, call: 888-EXPERIAN (397-3742) and write:
P.O. Box 9530, Allen TX 75013
TDD: 1-800-972-0322
Trans Union - www.transunion.com
To order your report, call: 800-888-4213 or write:
P.O. Box 1000, Chester, PA 19022
To report fraud, call: 800-680-7289 and write:
Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92634
TDD: 1-877-553-7803
When you contact the credit bureau's fraud department, 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.
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 have been entered and to make sure no new fraudulent activity has occurred.
{mospagebreak}
Creditor Documentation
Getting documentation from a creditor may be difficult, but you should try. Creditors' policies on confidentiality and recordkeeping vary and may prevent you from getting the paperwork you need to prove you didn't make a transaction.
On the upside, most victims can get accounts closed and debts dismissed by completing the creditor's fraud paperwork, or the ID Theft Affidavit, and including a copy of a police report.
Insist on a letter from the creditor stating that they have closed the disputed accounts and have discharged you of the fraudulent debts. This letter is your best defense if errors reappear or your personal information gets re-circulated. This letter also is the best document to give credit bureaus and debt collectors if your police report and ID Theft Affidavit aren't enough to resolve your problems with them.
{mospagebreak}
What are fraud alerts and victim statements? 
Fraud alerts let creditors know that fraud has been associated with your credit report. As a result, creditors may confirm that they're dealing with you and not an imposter before granting credit or other services.
Note: Fraud alerts and victim statements expire; you need to renew them periodically. Ask each bureau about its policy.
Victim statements tell creditors to contact you before granting credit or other services. Victim statements may cause delays in getting credit while the creditor tries to contact you. If you have a cell phone, you may want to include that number in your statement.
The following charts describe the current fraud alert and victim statement placement procedures of the credit bureaus. Please note: TransUnion and Equifax use a combined fraud alert and victim statement. Be sure to confirm these procedures when you contact the credit bureaus, as the procedures are subject to change.
INITIAL ALERT
| Credit Bureau |
Period of Initial Coverage |
Can You Request an Alert Online? |
Is a Free Credit Report Provided? |
| TransUnion |
12 Months |
No |
Yes |
| Equifax |
6 Months |
No |
Yes |
| Experian |
3 Month Fraud Alert |
Yes |
Yes, can be provided |
RENEWALS
| Credit Bureau |
Period of Renewal Coverage |
Is a Free Credit Report Provided? |
Number of Renewals Allowed |
| TransUnion |
12 Months or 7 Years |
Yes |
Unlimited |
| Equifax |
6 Months or 7 Years |
Yes |
Unlimited |
| Experian |
3 Month Fraud Alert or 7 Year Victim Statement |
Yes, provided online |
Unlimited |
Are fraud alerts and victim statements always effective?
No. Fraud alerts and victim statements are voluntary services provided by the credit bureaus. Creditors do not have to consider them when granting credit. That's why it's vital to continue checking your reports periodically. There's no federal law requiring credit reporting agencies to place fraud alerts, or sanctioning creditors who issue credit to an imposter after an alert is on the file, but some states have enacted laws.
 How much does a credit report cost?
Each credit bureau may charge you up to $9.00 for a copy of your report. However, you are entitled to one free report a year if you can show that your record is inaccurate because of fraud; you're on welfare; or you're unemployed and plan to look for a job within 60 days.
There is also no charge if a company has taken adverse action against you, such as denying your application for credit, insurance or employment, and you request your report wihtin 60 days of receiving notice of that adverse action.
(Recent changes in federal law mandating a free report, nationwide, will take effect in November, 2004.)
Updated: 01/21/2004, from the FTC website.
Note: Identity theft victims must act quickly to minimize damage. It's extremely important to keep good notes of all conversations (and maintain a record of all correspondence) with your financial institution and law enforcement agency contacts, logging the names, dates and phone number of your contacts.
{mospagebreak}
Consider using our simple three-page Identity Fraud Victim Worksheet to help you keep detailed, organized notes.You also should confirm the conversations/information in writing, sending your letters by certified mail, return receipt requested, to establish a record of your conversations/correspondence.
- Close the accounts that you know or believe have been tampered with or opened fraudulently.
Use the FTC's ID Theft Affidavit:
http://www.ftc.gov/bcp/conline/pubs/credit/affidavit.pdf
when disputing new unauthorized accounts.
a. Closing Credit Accounts
Credit accounts include all accounts with banks, credit card companies and other lenders, and phone companies, utilities, ISPs, and other service providers. If you are closing your existing accounts, use new Personal Identification Numbers (PINs) and passwords when you open new accounts. 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.
If the identity thief has made charges or debits, ask the company about the following forms for disputing those transactions:
- For New Unauthorized Accounts: Does the company accept the FTC's ID-Theft Affidavit? If not, ask the representative to send you the company's fraud dispute forms.
 For Your Existing Accounts: Ask the representative to send you the company's fraud dispute forms. If the company doesn't have special forms, use the FTC's recommended "sample dispute letter".
(Click HERE to view/print the FTC's recommended SAMPLE DISPUTE LETTER in Adobe .PDF format.) Need a PDF-format reader? Click here to download free Acrobat Reader software direct from Adobe.
b. Canceling
ATM Cards
If your ATM card has been lost, stolen or otherwise compromised, cancel the card as soon as you can. Get a new card with a new PIN.
c. Stopping Checks
If your checks have been stolen or misused, stop payment and ask your bank to notify the check verification service with which it does business. While no federal law limits your losses if someone steals your checks and forges your signature, state laws may protect you.
Most states hold the bank responsible for losses from a forged check. At the same time, however, most states require you to take reasonable care of your account. For example, you may be held responsible for a forgery if you fail to notify the bank in a timely manner that a check was lost or stolen. Contact your bank or the state banking or consumer protection agency for more information.
You can contact major check verification companies directly for the following services:
To request that they notify retailers (who use their databases) not to accept your checks, call:
- TeleCheck:
1-800-710-9898 or 1-800-927-0188
1-800-366-2425 (lost or stolen checks)
- Certegy, Inc.
(previously Equifax Check Services):
1-800-437-5120
If you've had bank accounts set up fraudulently in your name, call TeleCheck or Certegy. They can flag your file so that counterfeit checks will be refused.
Also, if fraudulent charges appear on your account, you can call the Consumer Credit Counseling Service (CCCS) at 800-388-2227 for help in clearing false claims from your credit report.
You can also direct your complaints to the following organizations if you think you're a victim of credit fraud:
- CSC (Computer Sciences Corp.) credit services fraud line at 1-800-272-9281.
- Better Business Bureau at (713) 868-9500.
- National Fraud Information Center at 1-800-876-7060.
Check Verification Companies
If your own checks are rejected at stores where you shop, contact the check verification company that the merchant uses.
You can also call these companies (listed below) to report fraudulent use of your checks, and to find out if the identity thief has been passing bad checks in your name (because you've had calls about checks you didn't write or entries on your account you didn't initiate) or you've had checks stolen or bank accounts fraudulently set up in your name:
| Check Verification Companies |
| National Check Fraud Center Hotline: |
1-843-571-2143 |
Certegy Check Services:
(formerly Equifax Check Services) |
1-800-437-5120
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| CheckRite: |
1-800-766-2748 |
| ChexSystems: |
1-800-428-9623 |
| CRA Security Systems: |
1-800-486-0955 |
| CrossCheck: |
1-800-552-1900 |
| Iinternational Check Services (ICS): |
1-800-631-9656 |
| National Processing Co. (NPC): |
1-800-526-5380 |
Shared Check Authorization Network
(SCAN): |
1-800-262-7771
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| TeleCheck: |
1-800-710-9898 or
1-800-927-0188
(1-800-366-2425
for lost/stolen checks) |
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Follow up all calls in writing. Send your letter by certified mail, return receipt requested, so you can document what the company received and when. Keep copies for your files.
d. Other Steps...
You may also want to contact the following
agencies for certain circumstances:
- Postal Inspection Service: if you suspect that an identity thief has used the mail to commit fraud with your identity. 1-207-871-8546 or 1-207-871-8587
- Social Security Administration: if you suspect that your Social Security Number is being used fraudulently. 1-800-269-0271
- Internal Revenue Service: if you suspect the improper use of your identity in connection with tax violations. 1-800-829-0433
- U.S. Secret Service: if you suspect you have been the victim of a fraud ring or if your case involves financial fraud with a high dollar amount. 1-207-780-3493
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- File a police report
(with your local police or the police in the community where the identity theft took place).
Get a copy of the report to submit to your creditors and others that may require proof of the crime.
Tips on Filing a Police Report
- Provide documentation. Furnish as much documentation as you can to prove your case. COPIES of debt collection letters, credit reports, your notarized Identity Theft Affidavit, and other evidence of fraudulent activity can help the police file a complete report. (Keep originals for your own files; you may need more copies.)
- Be persistent! —In 2003, over 60 percent of fraud victims who filed FTC complaints indicated they didn't notify their local police department.
Local authorities may tell you that they can't take a report. Stress the importance of a police report; many creditors require one to resolve your dispute. Also remind them that under their voluntary "Police Report Initiative," credit bureaus will automatically block the fraudulent accounts and bad debts from appearing on your credit report, but only if you can give them a copy of the police report. If you can't get the local police to take a report, try your county police. If that doesn't work, try your state police.
If you're told that identity theft is not a crime under your state law, ask to file a Miscellaneous Incident Report instead.
Be a motivating force. Ask your police department to search the FTC's Consumer Sentinel database for other complaints in your community. You may not be the first or only victim of this identity thief. If there is a pattern of cases, local authorities may give your case more consideration.
That's an important reason to file a complaint with the FTC. Law enforcement agencies use complaints filed with the FTC to aggregate cases, spot patterns, and track growth in identity theft. This information can then be used to improve investigations and victim assistance.
Tips on Organizing Your Case
Consider your identity theft incident as your "case". Your primary goals are to:
- close fraudulent accounts,
- clear yourself of responsibility for any debts or other criminal activities the thief has perpetrated in your name,
- ensure that your credit report is correct, and
- find out as much information about the suspect as you can so you can share that information with the police and the FTC.
Develop a plan of action to accomplish these goals. Make a list of the documents you'll need and a list of companies from which you'll need to get those documents.
Accurate and complete records will greatly improve your chances of resolving your identity theft case.
- Follow up in writing with all contacts you've made on the phone or in person. Use certified mail, return receipt requested.
- Keep copies of all correspondence or forms you send.
- Write down the name of anyone you talk to, what he or she told you, and the date that the conversation occurred. Use our simple three-page Identity Fraud Victim Worksheet to help you.
- Keep the originals of supporting documentation, like police reports, and letters to and from creditors; send copies only.
- Set up a filing system for easy access to your paperwork.
- Keep old files even if you believe your case is closed. One of the most difficult and annoying aspects of identity theft is that errors can reappear on your credit reports or your information can be re-circulated. Should this happen, you'll be glad you kept your files.
- File your complaint
at: https://rn.ftc.gov/pls/dod/widtpubl$.startup?Z_ORG_CODE=PU03
with the FTC. The FTC maintains a database of identity theft cases used by law enforcement agencies for investigations. Filing a complaint also helps us learn more about identity theft and the problems victims are having so that we can better assist you.
- Chart your course of action
Use our simple, three-page Identity Fraud Victim Worksheet to record the steps you've taken to report the fraudulent use of your identity. Keep this worksheet/list in a safe place for reference.
(Click HERE to view/print our Identity Fraud Victim Worksheet in Adobe .PDF format.) Need a PDF-format reader? Click here to download free Acrobat Reader software direct from Adobe.
WHY FILING A COMPLAINT WITH THE FTC (AND FBI) IS IMPORTANT
 Although the FTC does not have the authority to bring criminal cases, the Commission can assist victims of identity theft by providing them with information to help them resolve the financial and other problems that can result from identity theft. The FTC also may refer victim complaints to other appropriate government agencies and private organizations for further action. If you have been a victim of identity theft, you can file a complaint, online, with the FTC's Bureau of Consumer Protection's Consumer Response Center .
By sharing your identity theft complaint with the FTC, you will provide important information that can help law enforcement officials track down identity thieves and stop them. The FTC also refers victim complaints to other appropriate government agencies and private organizations for further action.
Methods of Contacting the FTC:
If you've been a victim of identity theft, file
a complaint with the FTC by contacting...
| the FTC's Identity Theft Hotline — |
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| by telephone: |
toll-free 1-877-IDTHEFT (438-4338);
TDD: 202-326-2502; |
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| by mail at: |
Identity Theft Clearinghouse
Federal Trade Commission
600 Pennsylvania Avenue, NW
Washington, DC 20580; |
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| or online at: |
www.consumer.gov/idtheft. |
If you've been victimized by any means involving the use of the Internet, you should also file a complaint with the FBI's Internet Fraud Complaint Center at http://www.IFCCFBI.gov.
Proving You’re a Victim, Not a Deadbeat. —Unlike victims of other crimes, who generally are treated with respect and sympathy, identity theft victims often find themselves having to prove that they’re victims, too - not deadbeats trying to get out of paying bad debts. So how do you go about proving something you didn’t do? Getting the right documents and getting them to the right people is key. Follow the steps outlined in this section (above) and maintain a good victim worksheet to help chart your course.
Seeking "Legal" advice...
If creditors and/or credit bureaus are not cooperative in removing fraudulent entries from your credit report (or if negligence is a factor) consider consulting a lawyer regarding possible legal action.
Call your local Bar Association or Legal Aid office to find an attorney specializing in consumer law, the Fair Credit Reporting Act and the Fair Credit Billing Act.
As a starting point for finding legal advice, you might want to jump to these pages at the American Bar Association (ABA) website:
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Written on Tuesday, 25 May 2010 08:50 by Perry A Pepin
Viewed 765 times so far.
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