According to the FBI, identity theft is the fastest growing white-collar crime in the nation.  It involves criminally using another individual’s personal identifying information, which can be acquired through various means, including your own mail box.  Identity thieves need only obtain your name, address, and bank or credit card account numbers, or your social security number, etc., to take over your identity.  The crooks can then change your address, open new accounts at banks and credit card companies in your name, and deplete your funds, running up huge credit card balances and generally creating havoc with your good name and credit rating.  Here are a couple of typical complaints to the Federal Trade Commission and a few pointers to help you avoid becoming a victim.

“Someone used my social security number to get credit in my name.  This has caused a lot of problems.  I have been turned down for jobs, credit, and refinancing offers.  This is stressful and embarrassing.  I want to open my own business, but it may be impossible with this unresolved problem hanging over my head.”

“Someone is using my name and social security number to open credit card accounts.  All the accounts are in collections.  I had no idea this was happening until I applied for a mortgage.  Because these ‘bad’ accounts showed up on my credit report, I didn’t get the mortgage.”

These complaints reflect just two of the tens of thousands of instances of identity theft that have impacted ordinary people.  Identity theft can impact anyone, not just the wealthy.  Identity theft results in loss of employment opportunities, denied loans and impaired credit history.  Repairing the damage from identity theft may take months, even years. 

 

There are ways to help protect against identity theft.  Some of this is accomplished when a bank asks you for identification or your credit card company calls to verify a recent purchase.  Banks and law enforcement will do what they can, but identity theft is often very difficult to detect. 

 

 

 

Identity Theft and Assumption Deterrence Act of 1998
The Identity Theft and Assumption Deterrence Act makes it a federal crime when someone:

“knowingly transfers or uses, without lawful authority, a means of identification of another person with the intent to commit, or to aid or abet, any unlawful activity that constitutes a violation of federal law, or that constitutes a felony under any applicable state or local law.”

Note that under the Act, a name or Social Security Number is considered a “means of identification”.  So is a credit card number, cellular telephone electronic serial number or any other piece of information that may be used alone or in conjunction with other information to identify a specific individual. 

This is chiefly your responsibility.  You are in the best position to protect your own identity by taking some basic precautions.  The list that follows suggests some of the things you can do.

• Use passwords on all accounts on your PC that are difficult to guess – and don’t use the same password for everything.  Don’t use passwords that relate to family names, birth dates, your SSN, addresses, or your job.
• Do not keep passwords on you, and don’t write such information on debit or ATM cards.
• Be careful what you throw in the trash such as bills, cancelled checks, account statements, marketing solicitations and similar documents.
• Shred or tear up your charge receipts, credit card solicitations, expired cards, statements, checks and other sensitive personal information.
• Carry only the identification and bank/credit cards you actually need.
• Review your monthly statements promptly, carefully and immediately report anything that you question, or if the bill does not arrive on time.
• Call your credit card company immediately if your new card has not arrived.
• Destroy and cancel old, unwanted or unused credit cards.  Cutting them up is not enough.
• Don’t give private information to anyone unless you are certain of who the person is and that they have a legitimate need to know.
• Never lend your password to anyone – you will probably be responsible for everything that results.
• Guard your mail.  Deposit outgoing mail at the post office rather than in your mailbox, and promptly remove mail from your mailbox when it arrives.
• Be absolutely certain of the identity of anyone telephoning you to request personal information.  Be especially cautious of anyone claiming to be a law enforcement official.  Arrange to call the person back, using a phone number you can verify in the phone book.
• Do not give our personal data over the phone, through the mail, or on the Internet unless you have initiated the contact.
• Periodically check your credit report to see if there are loans or credit cards outstanding that you don’t know about.
• Never write down PINs – memorize them and do not use any part of your social security number, mother’s maiden name, birth date or address.
• Guard YOUR social security number.  Never carry it in your wallet, or write it on checks.
• Give your social security number only when absolutely necessary.  Ask to use other identifiers.
• Be careful and mindful of who is around you at ATMs and when using phone cards.  “Shoulder surfers” can get your PIN number and gain access to your account.
• Do not allow your credit card out of your sight when paying for products or services.