ID Theft:  Are You Protected?

 

Identity theft is one of the fastest-growing crimes in the United States .  The number of fraud complaints has skyrocketed soaring from 220,000 in 2001 to 380,000 in 2002.  Over ten times the 31,000 reported in 2000.  ID Theft is not only a burden to consumers, but last year cost financial institutions $3.4 billion, according to Financial Insights, an industry research firm.

Mary Rosenberger, senior risk management specialist at CUNA Mutual, explains that identity theft occurs when a criminal steals a person's identity -- and their good credit -- without their knowledge.  "The thieves continue to open up new accounts and obtain new credit cards, withdraw money, and change addresses," Rosenberger says.  And because the bills often go directly to the address supplied by the thief, the victim isn't likely to uncover the charges draining their accounts and ruining their good credit until it's too late.

Thieves use many simple tactics to prey on unsuspecting targets.  They lift checks from mailboxes and dig through wastebaskets and dumpsters looking for credit card receipts.  Often, the thief is someone known to the victim -- a friend, relative, or roommate, for example -- anyone who has access to bills, receipts, wallets, or purses.  And even when a thief is arrested, it can take 400 hours, or 10 full workweeks, for the victim to straighten out credit, including closing and reopening accounts with financial institutions and re-establishing credit with credit reporting agencies.

Rosenberger says that you can take several steps to make it more difficult for a thief to succeed:

 

Are you at risk?
Precautions should be taken very seriously.  Identity theft is more than an inconvenience to those that are attacked.  It can haunt victims for years.  The Department of Justice  has an Identity Theft Quiz that you may take to help you understand the full impact of ID Theft and judge how vulnerable you may be and what you can do to protect yourself.

Precautions: Order a credit report
Many times people don’t realize that they have been a victim until long after the ID Theft has occurred.  One way to be more vigilant and detect theft early is to order a credit report at least annually from the three major credit bureaus; EquifaxExperian, and TransUnion.  Until recently, each report had to be purchased separately, but the bureaus have joined forces and created a combined report that may be ordered from the bureau of your choice.  The combined report not only saves the consumer money, but it also makes it easier for the consumer to detect fraud. In addition, the three recently announced that victims of ID theft can now call any bureau toll-free to report a theft and that the information would be relayed to all three agencies.  Previously, such information had to be reported to all three separately.

When reviewing the report it is important to:

  1. Ensure all accounts listed are legitimate accounts and the balances are what you expect them to be.
  2. Look for anything suspicious. Review who has ordered your credit report and make sure you’ve authorized all of the inquiries.  Names of companies that you are not familiar with may be a sign of fraud.
  3. Check for addresses where you have never lived.
  4. Check for typos in your social security number.
  5. If there is any incorrect information in the records contact the credit bureau, creditor, employer, or government agency immediately.  Follow up with a letter describing what actions were taken.

Precautions: Protect Your Personal Information
If you receive pre-screened credit card offers and don’t tear them up, identity thieves could retrieve the offers and use them to steal your identity without your knowledge.  To opt out of receiving pre-screened credit card offers, call:  1-888-5-OPTOUT (1-888-567-8688).  In addition, you can contact the three major credit bureaus and request that your personal information is not shared for promotional purposes by writing to:

Equifax, Inc.
Options
PO Box 740123
Atlanta , GA   30374-0123

Experian
Consumer Opt-Out
701 Experian Parkway
Allen , TX 75013

TransUnion
Marketing List Opt Out
PO Box 97328
Jackson , MS 39288-7328

Contact the Direct Marketing Association’s to opt-out of direct mail, telemarketing, and e-mail. 

For Direct Mail go online at Off Direct Mail List or write:
Mail Preferences Service
PO Box 643
Carmel , NY 10512

For Telemarketing go online at Off Telephone Mail List or write:
Telephone Preferences Service
PO Box 1559
Carmel , NY 10512

In addition, you may register for a state “do not call” list.  To see whether one is available in your state, please see, FTC Do Not Call.

For E-mail go online at Off Email List.  Your online request will be effective for one year.

There are many resources on identity theft available on the Internet that discuss prevention as well as what to do if you should unfortunately become a victim of ID Theft.  Here are two such resources you may wish to see:  FTC and Federal Reserve Bank of Boston.