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Frequently Asked Questions
Identity Theft
What is Identity Theft?
Traditionally, identity theft occurs when a person takes and assumes a victim's identity to obtain credit or credit cards from banks and retailers or to steal money from the victim's existing bank or brokerage accounts. In addition, some impersonators apply for loans in the name of the victim or obtain a job using the victim's name. More recently, criminals have been using the victim's medical identity to obtain health insurance coverage under the victim's name after the previously uninsured impersonator is diagnosed with serious illness.
How does a person's identity get stolen?
Unfortunately, stealing someone's identity is easy. If a criminal has access to your social security number and your birth date then confidential information can be accessed. Once enough data is gathered, the impersonator can obtain a false driver's license and begin the process of stealing your identity. With the new identification, they will apply for credit in person at a store or by mailing in a credit application. The new credit card may arrive directly at their residence or the impostor may check your mailbox daily to intercept the new credit card being delivered. Once that first account is open, a credit history is started and more cards are obtained in your name. Before you know it, your credit is ruined and it is very difficult to have it repaired after the fact.
How does the impersonator find information about me?
Think of the number of times you have provided someone (doctors, attorneys, accountants, insurance carriers, online retail stores) your confidential information or the times your confidential information is provided without your consent (such as during the probate of your will). All of this information should be protected for your benefit but often it is not, or, the protection in place is inadequate to prevent a theft from occurring. For example, many businesses continue to dump confidential information without cross-cut shredding it first. If you die, your social security number, date of birth, and residence address become public record when the death certificate is filed. In some counties, that information can be accessed freely through the internet. If you throw away bank statements, utility bills or other documents without cross-cut shredding them a thief may locate your information in your trash.
How can you stop the fraud?
If you find your identity has been stolen you need to contact all of the three major credit reporting agencies immediately and request a fraud alert be put on your file. To insure their compliance, you should follow up by mailing a letter to that effect. Also, ask them for a copy of your credit report so you can track accounts opened in your name and where they were opened. Once you determine where an account was opened you need to contact the local police or sheriff and advise them of the theft. Since the fraud occurred in their county or city, the jurisdiction for a criminal or civil case will likely be in that county.
Is there any way I can prevent a theft from occurring?
As a general rule, think of preventing everything you own from being "too public". For example, understand that anything you through in the trash can be searched by any person once it hits the curb. In order to prevent a thief from finding confidential information, use a cross-cut type shredder and shred all your important papers, including bank statements, brokerage statements, cancelled checks, credit card statements and receipts, and other financial information before throwing it away.
In addition, you should consider the following preventative measures:
- ATM Machines - Watch out for "shoulder surfers" when you are using an ATM. The thief could be hundreds of yards away with binoculars or just behind you as you entire your personal identification number (PIN). All they need after that is your debit card or the information on it. Cover up your hand as you enter your pin so no person can see what you type in. In addition, don't use an ATM at a location that doesn't appear very reputable. There have been scams where laptop computers were connected to the ATM and cameras installed to see you type in your PIN. You slide your card and all of your confidential data on that card is stored on the laptop. The thief takes the laptop home and creates new cards with all of your data and can now fully access your bank account through any ATM.
- Banking - Never throw away banking information without cross-shredding it even if the bank account is closed. When you order new checks, have them delivered to your bank and pick them up there so the thief cannot pull them out of your mailbox. When you pay your bills or otherwise put checks in the mail, drop them off at a post office or locked U.S. Mailbox. If the check is intercepted, the thief can easily change the payee to himself and cash the check at you bank.
- Credit Cards - You should always note on your calendar the date you order a new credit card or have a new card issued on an existing account. If your new card isn't received within 5-7 business days you need to contact the credit card company and find out the status of the delivery. You should also ask them if a change of address has been filed recently because that might indicate a theft of the card. If you haven't used a credit card for a year or more you should simply cancel the card and eliminate the risk of it being used by a criminal. Obtain credit cards with your photo on them if possible. If not, write "See Second ID" in the signature line on the back and provide them with your driver's license as additional identification. Finally, call the three credit reporting agencies and opt out of all pre-approved credit card offers.
- Monitor Your Accounts - Monitor all of your financial accounts and credit accounts on a monthly basis. You would be surprised at how often a fraudulent charge occurs on an account even when your identity isn't stolen. Any fake business could charge your account hundreds or thousands of dollars for a sham transaction. If that does occur you need to see it and call your credit company immediately. Order your credit report at least two times each year and check it carefully for fraudulent transactions. If you see one, contact all three of the major credit reporting agencies immediately and, if necessary, the lender on the fraudulent account. You should immediately follow up in writing to correct the mistakes with the agencies and the lender.
- Social Security Numbers - Never carry your social security card or other identification information (other than your driver's license) in your wallet or purse, unless absolutely necessary. If it is stolen the thief can use the information to access your credit or assets. Never put your social security number on a check. If a business requests your social security number explain to them that they can identify you without it. If a government agency requests your social security number it must be accompanied by a privacy notice.
- Telephone Inquisitors - Never give out any of your personal information over the telephone. No reputable lender or bank will request your confidential information unless you have called them to ask about your accounts. And, provide only the information you believe is absolutely necessary to complete the transaction.
- Post Office Box - If you do not have a locked mailbox you should seriously consider getting a post office box. An unlocked mailbox in front of your house is an easy target for a criminal to hit.
- Ask Questions - You should ask all banks, brokerage firms, doctors, and other institutions and individuals holding your confidential information what they do with your private information and how they protect it. Recent federal legislation requires medical records be private and release only to authorized agents, but you should still ask them how they intend to protect your information.
- Telephone Numbers - Consider having your phone number unlisted, or, use only your first initial and last name to identify the number.
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