Identity Theft Effect
IDENTITY THEFT CAUSE, PREVENTION, AND EFFECT
INTRODUCTION
A major growing problem within the United States is identity theft. Identity theft is the stealing and use of someone's personal information used primarily for monetary gain. I will elaborate on how identity theft occurs and I will describe what criminals can do with the information they obtain. I will also explain some of the prevention plans that companies have put into place to protect themselves and discuss how individuals can protect themselves as well. The Federal Trade Commission estimates that ten million Americans were victims of identity theft in 2002. 27.3 million Americans have been victims of some form of identity theft from 1998 to 2003. In 2004, merchandise …show more content…
and services obtained by identity theft perpetrators exceeded $52 billion. Identity theft is currently the fastest growing crime according to the Federal Bureau of Investigation. (Hamilton, Trethewey, Urrico)
WAYS IDENTITY THIEVES CAN OBTAIN PERSONAL INFORMATION:
A criminal can obtain personal information on another person in many ways. "Dumpster Diving" is a method perpetrators use by going through a person's garbage, communal dumpsters, or trash bins. These criminals can obtain copies of checks, credit card statements, bank statements, receipts, and carbons. The criminal will search for anything bearing your name, address, telephone number, and social security number. (Collins)
Another way identity thieves can obtain information is through "Shoulder Surfing". This is a method perpetrators use by looking over an individual's shoulder while in a checkout lane and memorizing the information on a check or a credit card. The perpetrator can also get calling card information or credit card information by looking over the shoulder of a person on a public telephone or just by eavesdropping if someone is giving their credit card information over the phone. (Hamilton)
"Skimming" is another way for information to be obtained. There are different types of skimming. A waiter at a restaurant may take a person's credit card to process their bill and then make a copy of the card. A store clerk can copy a credit/ debit card number from the carbon that the store keeps from a person's receipt. Also, skimming can occur when a criminal attaches a small skimmer device to an ATM machine and when the individual slides their card through, it records the magnetic stripe details. (Credit Card, Hamilton)
The internet has become an appealing place for criminals to obtain personal data. The novelty of the internet encourages people to explore. They often respond to unsolicitated emails that promise them something but require personal data from the person to process the request. In most cases, there is no intention of giving out anything. Today, half of all credit card fraud is conducted on-line. (DOJ)
"Phishing" is yet another method to obtain someone else's personal data. Phishing is the act of emailing a person and stating there is a problem with their account, then requesting personal information so the problem can be corrected. A new phishing scam that banks must face, which is hard to identify, is when a bank customer opens an email or even deletes the email without clicking on any embedded links, there is an program attached to the email by the criminal who silently runs a script. When the banking customer logs onto there bank website the code redirects the person to a fraudulent web site. (Federal Trade Commission, Ramsaran)
"Pretexting" is the act of calling a victim on the phone and stating they have a problem with their account and they need to verify information to fix the problem. (Federal Trade Commission)
"Spoofing" is when an individual receives fake email messages from a recognizable company requesting an update on their information. The website is hyper-linked and when accessed the criminal is able to obtain the individuals logon and password. (Urrico)
"Pharming" is a technique criminals use by setting up a phony web server and intercepting user names and PIN numbers. (Urrico)
Perpetrators can also obtain personal information by bribing employees who have access to personal records, stealing records while on the job, conning information out of employees, hacking personal records, stealing your wallet or purse, or stealing from your home. (Collins, Federal Trade Commission)
Criminals can also pose as a legitimate business and buy personal information from companies that collect personal data to be sold for verification purposes such as a background check on a potential employee. (Data Security)
WHAT CRIMINALS CAN DO WITH THE INFORMATION THEY OBTAIN:
· When criminals use the skimming technique that copies the magnetic stripe of a credit card, they can sell the stripe on the black market and from there the stripe can be cloned to make several cards. (Credit Card)
· Criminals can use credit cards or debit cards to go on shopping sprees. They will often buy large, expensive items such as computers, TVs, and stereos that are easily sold.
· Criminals can open new credit card accounts or loans in the victim's name and when the bills are not paid, the delinquent accounts are reported on the victim's credit report.
· Criminals can open wireless services or establish a phone in the victim's name.
· Criminals can open bank accounts and write bad checks or authorize electronic transfers and drain the victim's bank account.
· Criminals may buy a car in your name or file for bankruptcy for debt they have incurred using your personal information.
· Criminals can avoid law enforcement by using a victim's name during an arrest. When the victim does not show up to court, because they were unaware, there is a warrant issued in the victim's name.
· Criminals can fraudulently use calling cards. (Hamilton)
· Criminals can submit a change of address form redirecting mail to the perpetrators address so victims do not know there is a problem until it is too late.
· Criminals can establish false identities by obtaining a driver's license with their picture and the victim's information.
· Criminals can get a job or file for fraudulent tax returns. (Federal Trade Commission)
WHAT CONGRESS IS DOING TO STOP IDENTITY THEFT:
In 1998, Congress passed the Identity Theft and Assumption Deterrence Act which prohibits: "Knowingly transfer(ring) or us(ing), without lawful authority, a means of identification of another person with the intent to commit, or to aid and abet, any unlawful activity that constitutes a violation of Federal law, or that constitutes a felony under any applicable state or local law".
Violating this act, in most cases, carries a maximum of fifteen years in prison, a fine, and the criminal must surrender any personal property used or intended to be used to commit the offense. Federal prosecutors work with agencies such as the Federal Bureau of Investigation, United States Secret Service, and the United States Postal Inspection Service to prosecute criminals. …show more content…
(DOJ)
Since then, many bills involving the privacy of personal information have been introduced to Congress. In May 2002, the Consumer Privacy Protection Act was introduced. This act provides help to victims of identity theft and places requirements on organizations that collect personal information. In January 2003, the Identity Theft Prevention Act was introduced to aid in the prevention of criminals wrongfully obtaining the personal information of another person. Also in January 2003, the Social Security Number and Misuse Prevention Act was established. This act prevents the sale and display of social security numbers on public documents placed on the internet or issued to the public through electronic media. This act would also limit businesses from requesting social security numbers from customers. (Riordan)
Some bills that are currently under discussion in Congress:
In October 2005, the "Financial Data Protection Act of 2005" was introduced to Congress. This act is "to amend the Fair Credit Reporting Act to provide for secure financial data and for other purposes" (H.R. 3997). (Consumers Union)
In October 2005, the "Data Accountability and Trust Act (DATA)" was introduced "to protect consumers by requiring reasonable security policies and procedures to protect computerized data containing personal information, and to provide for nationwide notice in the event of a security breach" (H.R. 4127). (Consumers Union)
In September 2005, the "Personal Data Privacy and Security Act of 2005"was introduced. This act is designed "to prevent and mitigate identity theft, to ensure privacy, to provide notice of security breaches and to enhance criminal penalties, law enforcement assistance, and other protections against security breaches, fraudulent access and misuse of personally identifiable information" (S.1789). (Consumers Union)
In July 2005, the "Identity Theft Prevention Act" was introduced to Congress.
This act is designed to "strengthen data protection and safeguards, require data breach notification, and further prevent identity theft" (S.1408). (Consumers Union)
WHAT COMPANIES ARE DOING TO PREVENT IDENTITY THEFT:
Consumers have the most control over protecting their personal information. Therefore, educating consumers is the most important aspect of a successful identity theft protection program. Companies must convince consumers that it is their own personal responsibility to be aware of the risks of identity theft and that consumers must be diligent in taking steps to protect their personal information. Companies have introduced many safeguards to prevent identity theft. The following are some services offered by companies to prevent identity theft:
IDTheftBlock is a service that provides identity theft monitoring and protection for its subscribed members. (San Filippo)
eStamp is a service provided by credit unions designed to make the consumers feel comfortable when using the Internet. This service provides each member a personalized watermark graphic so they know they are dealing with the real credit union. (San
Filippo)
DeleteNow is a subscription-based service that examines web-based directories and search engines for personal information and then requests that that information be deleted from those directories. (Delaney)
IDWatch is a service that scans public filings and notifies subscribers when any changes are made to diver's licences, birth certificates, property records and many other public records. If prevention fails, there is $25,000 Identity theft insurance that covers any direct losses. (Delaney)
FraudProtect is a service that monitors different sources such as government records, credit agencies (Equifax, Experian, and Transunion), and the Internet for changes and then notifies the subscriber. (Delaney)
MyPublicInfo is a service that determines whether someone has stolen a customer's personal information to setup alternative addresses, avoid law enforcement, or take out loans. They also offer customer service support to help customers understand potential problems. (Delaney)
PEMCO's PRISM software is a service that reviews consumers habits and spending patterns for Mastercard, VISA, and ATM card issuers. If fraud is suspected, the company will contact the cardholder to verify the purchase. If the cardholder is unavailable, the company will put a block on the card until such time that the cardholder is contacted. (Urrico)
There are many other services companies provide, usually for a fee, that can help in stopping identity theft. Some companies will ask questions that only the actual consumer would know, such as an old address or the name of a financial institution that the consumer has a loan through. Some companies will also require the cardholder to call from their home phone in order to activate a new card. (Urrico)
STEPS TO TAKE TO AVOID BECOMING A VICTIM OF IDENTITY THEFT:
· Gain as much knowledge as possible on identity theft and ways you could be victimized. Being educated is the main defense against identity theft.
· If consumers are unsure of a company's credibility, they can call the Better Business Bureau to get information about companies that have had many complaints reported against them.
· When leaving town, for business or pleasure, individuals should have someone they know and trust pick up their mail or call the postal service and ask them to hold their mail until they return.
· Check bank and credit card statements thoroughly and regularly. If statements do not arrive monthly, consumers should notify the financial institution.
· Ask every so often for a copy of your credit report. Under the Fair Credit Reporting Act the government must provide your credit report to any person that requests it, free of charge, once per year. Individuals can obtain this free copy at annualcreditreport.com.
· Hold onto your financial statements for at least one year, if not longer. (DOJ)
· If you receive mail for accounts you did not open or credit cards that you did not apply for, notify the company immediately.
· Put passwords on bank, credit card and telephone accounts.
· Do not use your mother's maiden name when filling out an application. Ask to use a password instead.
· Discuss security procedures with your place of employment or at other companies/ institutions that collect your personal information. Verify that your information is handled securely.
· Never give out personal information over the phone, on the internet, or through the mail unless you are the one who made contact and you know you can absolutely trust the source.
· Pick up new checks from the bank rather than having them mailed to you.
· If your driver's license or student identification number is your social security number, ask for it to be changed to a different number.
· Use credit monitoring but be aware that not all services offer monitoring on all three credit reporting companies, so be sure you know what you are paying for. (Federal Trade Commission)
· Keep a close eye on your credit card every time you use it. Do not let it out of your sight and put it away quickly.
· Sign your credit cards as soon as you get them.
· Keep a list of your account numbers and expiration dates, so if something unusual does appear you have something to verify it against. (Lanford)
· Never give out personal information over the phone unless you are in a secluded area where you are sure no one is listening.
· Support new bills designed to protect personal information. (Riordan)
· Safeguard your social security number. Your social security number should only be given out to your employer, bank, and credit card companies unless there is a specific law that requires it. Do not just give it to anyone. Do not routinely carry your social security card in your wallet/ purse.
· Before giving out personal information ask how the information will be used. Some banks and companies share your information with other companies. Take whatever steps possible to avoid programs that allow this.
· Do not carry all of your credit cards/ debit cards or identification cards together. Only take with you what you will use that day.
· Get a home floor safe to store important documents with personal information or account numbers on them.
· Destroy all documents with personal information that are not needed such as pre-approved credit cards, insurance forms, receipts, or carbons by shredding or ripping to pieces to avoid criminals getting information through "dumpster diving". (Trethewey)
· For internet protection, consumers should be aware of unwelcome emails, and should install anti-virus and anti-spyware programs on computers along with firewall protection.
· Individuals should not keep PIN numbers in their wallet/ purse and should never write their PIN number on the back of their card. (Urrico)
STEPS TO TAKE IF YOU HAVE BEEN A VICTIM OF IDENTITY THEFT:
If you think you have been a victim of identity theft, act quickly to minimize the damage:
· Contact the Federal Trade Commission (FTC), your local office of the Federal Bureau of Investigation, or the United States Secret Service to report the incident. You can contact them by mail, computer, or telephone to file an identity theft report.
· Contact the Social Security Administration if you think your social security number has been used in fraudulent activities.
· Contact the Internal Revenue Service if you think there have been fraudulent activities regarding taxes in your name.
· Contact any companies and financial institutions where you think your personal data was used fraudulently and close those accounts.
· Notify the major check verification companies (CheckRite, ChexSystems, CrossCheck, Equifax, National Processing Co., SCAN, and TeleCheck) if you have had checks stolen or bank accounts fraudulently set up in your name. (DOJ)
· Call the three credit reporting companies (Equifax, Experian, and TransUnion) to report the fraud and place a fraud alert on your credit report. A fraud alert notifies the creditor to contact you before making changes to your accounts or opening any new accounts. An initial fraud alert, for consumers who suspect identity theft, stays on your credit report for 90 days. An extended fraud alert, for customers who have been victims of identity theft, stays on your credit report for seven years. An extended fraud alert entitles the victim to two free credit reports a year and credit reporting companies will remove your name from marketing lists for pre-screened credit offers for five years unless you request your name to be put back on before those five years are up.
· If your license or other identification document was issued fraudulently in your name, notify the agency that issued it.
· If your purse/ wallet was stolen or your home/ car was broken into, notify the police immediately and call one of the credit reporting companies to put an initial fraud alert on your credit reports. (Federal Trade Commission)
· Look into your state legislation to see if putting a "Security Freeze" on your account is possible. A "security freeze" prevents anyone, including the consumer, from opening new credit cards or getting loans instantly. The consumer must provide additional information to prove their identity. About twenty states now have pending legislation that would force credit bureaus to give consumers the right to put a "security freeze" on their accounts. (San Filippo, Swartz)
THE EFFECTS OF IDENTITY THEFT
The effects of identity theft on a victim can be very damaging. Along with being harassed by creditors and having your credit rating ruined, it takes, on average, over two years before victims of identity theft can restore their credit ratings and an average of $3,000.00 to repair the damages and that is only if the criminal did not pass your information on to other thieves. Victims will be asked for additional identifying information when making purchases or applying for credit which can become very frustrating. (Trethewey)
CONCLUSION
Identity theft is rapidly becoming one of the costliest crimes in America. Despite this growing threat to our most valued personal information, many consumers are still uneducated on this topic. Government, businesses and consumer groups must all work together to inform individuals about successful prevention techniques. Ultimately, the most powerful defense against identity theft is the individual's determination to keep their most valued personal information private.
INTRODUCTION
A major growing problem within the United States is identity theft. Identity theft is the stealing and use of someone's personal information used primarily for monetary gain. I will elaborate on how identity theft occurs and I will describe what criminals can do with the information they obtain. I will also explain some of the prevention plans that companies have put into place to protect themselves and discuss how individuals can protect themselves as well. The Federal Trade Commission estimates that ten million Americans were victims of identity theft in 2002. 27.3 million Americans have been victims of some form of identity theft from 1998 to 2003. In 2004, merchandise …show more content…
and services obtained by identity theft perpetrators exceeded $52 billion. Identity theft is currently the fastest growing crime according to the Federal Bureau of Investigation. (Hamilton, Trethewey, Urrico)
WAYS IDENTITY THIEVES CAN OBTAIN PERSONAL INFORMATION:
A criminal can obtain personal information on another person in many ways. "Dumpster Diving" is a method perpetrators use by going through a person's garbage, communal dumpsters, or trash bins. These criminals can obtain copies of checks, credit card statements, bank statements, receipts, and carbons. The criminal will search for anything bearing your name, address, telephone number, and social security number. (Collins)
Another way identity thieves can obtain information is through "Shoulder Surfing". This is a method perpetrators use by looking over an individual's shoulder while in a checkout lane and memorizing the information on a check or a credit card. The perpetrator can also get calling card information or credit card information by looking over the shoulder of a person on a public telephone or just by eavesdropping if someone is giving their credit card information over the phone. (Hamilton)
"Skimming" is another way for information to be obtained. There are different types of skimming. A waiter at a restaurant may take a person's credit card to process their bill and then make a copy of the card. A store clerk can copy a credit/ debit card number from the carbon that the store keeps from a person's receipt. Also, skimming can occur when a criminal attaches a small skimmer device to an ATM machine and when the individual slides their card through, it records the magnetic stripe details. (Credit Card, Hamilton)
The internet has become an appealing place for criminals to obtain personal data. The novelty of the internet encourages people to explore. They often respond to unsolicitated emails that promise them something but require personal data from the person to process the request. In most cases, there is no intention of giving out anything. Today, half of all credit card fraud is conducted on-line. (DOJ)
"Phishing" is yet another method to obtain someone else's personal data. Phishing is the act of emailing a person and stating there is a problem with their account, then requesting personal information so the problem can be corrected. A new phishing scam that banks must face, which is hard to identify, is when a bank customer opens an email or even deletes the email without clicking on any embedded links, there is an program attached to the email by the criminal who silently runs a script. When the banking customer logs onto there bank website the code redirects the person to a fraudulent web site. (Federal Trade Commission, Ramsaran)
"Pretexting" is the act of calling a victim on the phone and stating they have a problem with their account and they need to verify information to fix the problem. (Federal Trade Commission)
"Spoofing" is when an individual receives fake email messages from a recognizable company requesting an update on their information. The website is hyper-linked and when accessed the criminal is able to obtain the individuals logon and password. (Urrico)
"Pharming" is a technique criminals use by setting up a phony web server and intercepting user names and PIN numbers. (Urrico)
Perpetrators can also obtain personal information by bribing employees who have access to personal records, stealing records while on the job, conning information out of employees, hacking personal records, stealing your wallet or purse, or stealing from your home. (Collins, Federal Trade Commission)
Criminals can also pose as a legitimate business and buy personal information from companies that collect personal data to be sold for verification purposes such as a background check on a potential employee. (Data Security)
WHAT CRIMINALS CAN DO WITH THE INFORMATION THEY OBTAIN:
· When criminals use the skimming technique that copies the magnetic stripe of a credit card, they can sell the stripe on the black market and from there the stripe can be cloned to make several cards. (Credit Card)
· Criminals can use credit cards or debit cards to go on shopping sprees. They will often buy large, expensive items such as computers, TVs, and stereos that are easily sold.
· Criminals can open new credit card accounts or loans in the victim's name and when the bills are not paid, the delinquent accounts are reported on the victim's credit report.
· Criminals can open wireless services or establish a phone in the victim's name.
· Criminals can open bank accounts and write bad checks or authorize electronic transfers and drain the victim's bank account.
· Criminals may buy a car in your name or file for bankruptcy for debt they have incurred using your personal information.
· Criminals can avoid law enforcement by using a victim's name during an arrest. When the victim does not show up to court, because they were unaware, there is a warrant issued in the victim's name.
· Criminals can fraudulently use calling cards. (Hamilton)
· Criminals can submit a change of address form redirecting mail to the perpetrators address so victims do not know there is a problem until it is too late.
· Criminals can establish false identities by obtaining a driver's license with their picture and the victim's information.
· Criminals can get a job or file for fraudulent tax returns. (Federal Trade Commission)
WHAT CONGRESS IS DOING TO STOP IDENTITY THEFT:
In 1998, Congress passed the Identity Theft and Assumption Deterrence Act which prohibits: "Knowingly transfer(ring) or us(ing), without lawful authority, a means of identification of another person with the intent to commit, or to aid and abet, any unlawful activity that constitutes a violation of Federal law, or that constitutes a felony under any applicable state or local law".
Violating this act, in most cases, carries a maximum of fifteen years in prison, a fine, and the criminal must surrender any personal property used or intended to be used to commit the offense. Federal prosecutors work with agencies such as the Federal Bureau of Investigation, United States Secret Service, and the United States Postal Inspection Service to prosecute criminals. …show more content…
(DOJ)
Since then, many bills involving the privacy of personal information have been introduced to Congress. In May 2002, the Consumer Privacy Protection Act was introduced. This act provides help to victims of identity theft and places requirements on organizations that collect personal information. In January 2003, the Identity Theft Prevention Act was introduced to aid in the prevention of criminals wrongfully obtaining the personal information of another person. Also in January 2003, the Social Security Number and Misuse Prevention Act was established. This act prevents the sale and display of social security numbers on public documents placed on the internet or issued to the public through electronic media. This act would also limit businesses from requesting social security numbers from customers. (Riordan)
Some bills that are currently under discussion in Congress:
In October 2005, the "Financial Data Protection Act of 2005" was introduced to Congress. This act is "to amend the Fair Credit Reporting Act to provide for secure financial data and for other purposes" (H.R. 3997). (Consumers Union)
In October 2005, the "Data Accountability and Trust Act (DATA)" was introduced "to protect consumers by requiring reasonable security policies and procedures to protect computerized data containing personal information, and to provide for nationwide notice in the event of a security breach" (H.R. 4127). (Consumers Union)
In September 2005, the "Personal Data Privacy and Security Act of 2005"was introduced. This act is designed "to prevent and mitigate identity theft, to ensure privacy, to provide notice of security breaches and to enhance criminal penalties, law enforcement assistance, and other protections against security breaches, fraudulent access and misuse of personally identifiable information" (S.1789). (Consumers Union)
In July 2005, the "Identity Theft Prevention Act" was introduced to Congress.
This act is designed to "strengthen data protection and safeguards, require data breach notification, and further prevent identity theft" (S.1408). (Consumers Union)
WHAT COMPANIES ARE DOING TO PREVENT IDENTITY THEFT:
Consumers have the most control over protecting their personal information. Therefore, educating consumers is the most important aspect of a successful identity theft protection program. Companies must convince consumers that it is their own personal responsibility to be aware of the risks of identity theft and that consumers must be diligent in taking steps to protect their personal information. Companies have introduced many safeguards to prevent identity theft. The following are some services offered by companies to prevent identity theft:
IDTheftBlock is a service that provides identity theft monitoring and protection for its subscribed members. (San Filippo)
eStamp is a service provided by credit unions designed to make the consumers feel comfortable when using the Internet. This service provides each member a personalized watermark graphic so they know they are dealing with the real credit union. (San
Filippo)
DeleteNow is a subscription-based service that examines web-based directories and search engines for personal information and then requests that that information be deleted from those directories. (Delaney)
IDWatch is a service that scans public filings and notifies subscribers when any changes are made to diver's licences, birth certificates, property records and many other public records. If prevention fails, there is $25,000 Identity theft insurance that covers any direct losses. (Delaney)
FraudProtect is a service that monitors different sources such as government records, credit agencies (Equifax, Experian, and Transunion), and the Internet for changes and then notifies the subscriber. (Delaney)
MyPublicInfo is a service that determines whether someone has stolen a customer's personal information to setup alternative addresses, avoid law enforcement, or take out loans. They also offer customer service support to help customers understand potential problems. (Delaney)
PEMCO's PRISM software is a service that reviews consumers habits and spending patterns for Mastercard, VISA, and ATM card issuers. If fraud is suspected, the company will contact the cardholder to verify the purchase. If the cardholder is unavailable, the company will put a block on the card until such time that the cardholder is contacted. (Urrico)
There are many other services companies provide, usually for a fee, that can help in stopping identity theft. Some companies will ask questions that only the actual consumer would know, such as an old address or the name of a financial institution that the consumer has a loan through. Some companies will also require the cardholder to call from their home phone in order to activate a new card. (Urrico)
STEPS TO TAKE TO AVOID BECOMING A VICTIM OF IDENTITY THEFT:
· Gain as much knowledge as possible on identity theft and ways you could be victimized. Being educated is the main defense against identity theft.
· If consumers are unsure of a company's credibility, they can call the Better Business Bureau to get information about companies that have had many complaints reported against them.
· When leaving town, for business or pleasure, individuals should have someone they know and trust pick up their mail or call the postal service and ask them to hold their mail until they return.
· Check bank and credit card statements thoroughly and regularly. If statements do not arrive monthly, consumers should notify the financial institution.
· Ask every so often for a copy of your credit report. Under the Fair Credit Reporting Act the government must provide your credit report to any person that requests it, free of charge, once per year. Individuals can obtain this free copy at annualcreditreport.com.
· Hold onto your financial statements for at least one year, if not longer. (DOJ)
· If you receive mail for accounts you did not open or credit cards that you did not apply for, notify the company immediately.
· Put passwords on bank, credit card and telephone accounts.
· Do not use your mother's maiden name when filling out an application. Ask to use a password instead.
· Discuss security procedures with your place of employment or at other companies/ institutions that collect your personal information. Verify that your information is handled securely.
· Never give out personal information over the phone, on the internet, or through the mail unless you are the one who made contact and you know you can absolutely trust the source.
· Pick up new checks from the bank rather than having them mailed to you.
· If your driver's license or student identification number is your social security number, ask for it to be changed to a different number.
· Use credit monitoring but be aware that not all services offer monitoring on all three credit reporting companies, so be sure you know what you are paying for. (Federal Trade Commission)
· Keep a close eye on your credit card every time you use it. Do not let it out of your sight and put it away quickly.
· Sign your credit cards as soon as you get them.
· Keep a list of your account numbers and expiration dates, so if something unusual does appear you have something to verify it against. (Lanford)
· Never give out personal information over the phone unless you are in a secluded area where you are sure no one is listening.
· Support new bills designed to protect personal information. (Riordan)
· Safeguard your social security number. Your social security number should only be given out to your employer, bank, and credit card companies unless there is a specific law that requires it. Do not just give it to anyone. Do not routinely carry your social security card in your wallet/ purse.
· Before giving out personal information ask how the information will be used. Some banks and companies share your information with other companies. Take whatever steps possible to avoid programs that allow this.
· Do not carry all of your credit cards/ debit cards or identification cards together. Only take with you what you will use that day.
· Get a home floor safe to store important documents with personal information or account numbers on them.
· Destroy all documents with personal information that are not needed such as pre-approved credit cards, insurance forms, receipts, or carbons by shredding or ripping to pieces to avoid criminals getting information through "dumpster diving". (Trethewey)
· For internet protection, consumers should be aware of unwelcome emails, and should install anti-virus and anti-spyware programs on computers along with firewall protection.
· Individuals should not keep PIN numbers in their wallet/ purse and should never write their PIN number on the back of their card. (Urrico)
STEPS TO TAKE IF YOU HAVE BEEN A VICTIM OF IDENTITY THEFT:
If you think you have been a victim of identity theft, act quickly to minimize the damage:
· Contact the Federal Trade Commission (FTC), your local office of the Federal Bureau of Investigation, or the United States Secret Service to report the incident. You can contact them by mail, computer, or telephone to file an identity theft report.
· Contact the Social Security Administration if you think your social security number has been used in fraudulent activities.
· Contact the Internal Revenue Service if you think there have been fraudulent activities regarding taxes in your name.
· Contact any companies and financial institutions where you think your personal data was used fraudulently and close those accounts.
· Notify the major check verification companies (CheckRite, ChexSystems, CrossCheck, Equifax, National Processing Co., SCAN, and TeleCheck) if you have had checks stolen or bank accounts fraudulently set up in your name. (DOJ)
· Call the three credit reporting companies (Equifax, Experian, and TransUnion) to report the fraud and place a fraud alert on your credit report. A fraud alert notifies the creditor to contact you before making changes to your accounts or opening any new accounts. An initial fraud alert, for consumers who suspect identity theft, stays on your credit report for 90 days. An extended fraud alert, for customers who have been victims of identity theft, stays on your credit report for seven years. An extended fraud alert entitles the victim to two free credit reports a year and credit reporting companies will remove your name from marketing lists for pre-screened credit offers for five years unless you request your name to be put back on before those five years are up.
· If your license or other identification document was issued fraudulently in your name, notify the agency that issued it.
· If your purse/ wallet was stolen or your home/ car was broken into, notify the police immediately and call one of the credit reporting companies to put an initial fraud alert on your credit reports. (Federal Trade Commission)
· Look into your state legislation to see if putting a "Security Freeze" on your account is possible. A "security freeze" prevents anyone, including the consumer, from opening new credit cards or getting loans instantly. The consumer must provide additional information to prove their identity. About twenty states now have pending legislation that would force credit bureaus to give consumers the right to put a "security freeze" on their accounts. (San Filippo, Swartz)
THE EFFECTS OF IDENTITY THEFT
The effects of identity theft on a victim can be very damaging. Along with being harassed by creditors and having your credit rating ruined, it takes, on average, over two years before victims of identity theft can restore their credit ratings and an average of $3,000.00 to repair the damages and that is only if the criminal did not pass your information on to other thieves. Victims will be asked for additional identifying information when making purchases or applying for credit which can become very frustrating. (Trethewey)
CONCLUSION
Identity theft is rapidly becoming one of the costliest crimes in America. Despite this growing threat to our most valued personal information, many consumers are still uneducated on this topic. Government, businesses and consumer groups must all work together to inform individuals about successful prevention techniques. Ultimately, the most powerful defense against identity theft is the individual's determination to keep their most valued personal information private.