October 2001: IDENTITY THEFT – When Bad Things Happen to Your Good Name

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 his or her own use. In short, identity theft occurs when someone appropriates your personal information without your knowledge to commit fraud or theft. Identity theft is the fastest growing crime in America, affecting approximately 900,000 new victims each year. Here are some resources that will help you be prepared, both at home and in the workplace. 

March 2002 Update - Identity Theft: Incidence and Cost Appear to Be Growing. GAO-02-363  http://www.gao.gov/cgi-bin/getrpt?GAO-02-363

The US Federal Trade Commission’s web site on Identity Theft, is the U.S. government's central website for information about identity theft. Here, you will find information on prevention, the laws, what to do, an ID Theft Affidavit, and an excellent downloadable (.pdf) booklet (see sidebar) that provided the title for the October 2001 theme “When Bad Things Happen to Your Good Name.” 

At the Federal Deposit Insurance Corporation (FDIC) website, you’ll find “Classic Cons… and How to Counter Them.” Turn there for more information on ATM theft, check fraud, credit card fraud, debt relief fraud, fraudulent certificates of deposit, and more.

The Privacy Rights Clearinghouse, www.privacyrights.org, offers a guide for victims, and advice of how it happens, its impact on victims, and legislative solutions. They also sponsor the Identity Theft Resource Center (www.idtheftcenter.org/index.htm), a nonprofit organization dedicated to developing and implementing a comprehensive program against identity theft. 

By being vigilant in all of your financial matters, you become the first line of defense in reducing your chances of becoming a victim, says the FBI’s Community Alert & Education feature, Protecting Yourself Against Identity Fraud. This helpful site offers tips for individuals to protect themselves from fraud, and advice for what to do if victimized.

Terrence Berg, Assistant Attorney General and Head of the Michigan High Tech Crime Unit, wrote an excellent article on Fighting Identity Crime Theft. (full article) 

While you can't prevent identity theft, you can minimize your risk by managing your personal information wisely. We are reminded by this recent case cited below from the US Attorney for the Southern District of Florida that this is a real problem, and it happens in the workplace too. 

“…The conspiracy involved theft of more than 39,000 credit card account numbers from computer systems of restaurants in Florida. …There were more than 78,000 fraudulent charges made from account numbers taken from computer systems of restaurants.

 …Credit card companies estimate that the fraud loss attributable to this scheme exceeds more than $8 million.”

Pay attention to your billing cycles. Follow up with creditors if your bills don’t arrive on time. A missing credit card bill could mean that an identity thief has taken over your credit card account and changed your billing address to cover his tracks.

Do not give out personal information on the phone, through the mail, or over the Internet unless you have initiated the contact or know who you are dealing with.

Put passwords on your credit card, bank, and phone accounts. Avoid using easily available information, like your mother’s maiden name, your birth date, the last four digits of your Social Security number, your phone number, or a series of consecutive numbers.

Don’t carry your SSN card. Lave it in a secure place.

Order a copy of your credit report from each of the three major credit reporting agencies (see the booklet for the address of the agencies) every year. Make sure it is accurate and includes only those activities you have authorized. The law allows credit bureaus to charge you up to $8.50 for a copy of your credit report.