Prevent Identity Theft: Be Aware, Be Proactive, Be Assertive

An incorrect billing statement could be a simple error, or someone might be trying to impersonate you. Forged credit cards remain the bane of credit card users everywhere. But oddly enough, credit card fraud is not the biggest problem with identity theft. Chris Wright offers some practical tips to prevent identity theft and to begin the process of restoring your good name.

Identity theft involves acquiring key pieces of a person's identifying information in order to impersonate them, usually for financial gain. Such theft might include a person's name, address, date of birth, social security number, driver's license number, mother's maiden name, license plate number, or other identifying personal data. Once the thief has acquired this information, they can use it to commit numerous forms of fraud, including but not limited to:

• Taking over the victim's financial accounts;
• Opening up new bank accounts;
• Purchasing an automobile;
• Applying for loans or credit cards;
• Renting apartments;
• Obtaining social security benefits; and
• Establishing public services with phone companies and utilities

BE AWARE 

The biggest problem is that you might never know you're a victim until you notice something is amiss — you receive an invoice for something you didn't buy or a statement from a credit account you never opened. Perhaps you're denied credit based on negative information on your credit report. When you investigate, you discover charges and late payments that you didn't authorize and knew nothing about. It pays to keep your eyes open. If you think you might be a victim, tackle the problem immediately. Any delay will only hurt you and your credit further.

BE PROACTIVE 

While you can't prevent identity theft entirely, you can minimize your risk by managing personal information wisely, cautiously, and with awareness of the potential for identity theft. Effective guidelines for information management include, but are not limited, to:

• Don't reveal any personal identifying information until you know how it will be used and whether the information will be shared with others. Ask if you have a choice about the use of your information and whether it can be kept confidential.
• Pay attention to your credit card billing cycles. Follow up with creditors if your bills don't arrive on time. A missing credit card bill could mean that a thief has changed your billing address to cover their tracks.
• Guard your mail. Deposit outgoing mail in post office collection boxes or at your local post office. Remove mail from your mailbox promptly after it has been delivered. If you're planning to be away from home, request a vacation hold on your mail.
• Put passwords on your credit card, bank, and phone accounts.
• Don't carry more identification information and credit cards than you actually need.
• Don't give out personal information on the phone, through the mail, or over the Internet unless you initiated the contact or know with whom you're dealing. Legitimate organizations with which you do business have the information they need and won't ask you for it.
• Shred charge receipts, copies of pre-approved or actual credit applications, insurance forms, physician statements, checks, bank statements and other financial information. Do not simply discard them in the trash.
• Be cautious about where you leave personal information in your home. This is especially true if you have roommates, employ outside help, or are having service work done to your home.
• Verify that your personal information at work is kept in a secure location.
• Finally, give your Social Security Number (SSN) only when absolutely necessary. Your employer and financial institution will likely need the number for wage and tax purposes. Some businesses might ask for your SSN to do a credit check. However, you do not have to give a business the number just because they ask for it. Before providing your SSN, ask these questions:   

• Why do you need my SSN?
• How will it be used?
• What law requires me to give you my SSN?
• What will happen if I don't give you my SSN?

First, contact the fraud departments of each of the three major credit bureaus. Tell them that you believe you're an identity-theft victim. Request that a 'fraud alert' be placed in your file, as well as a 'victim's statement' asking that creditors call you before opening any new accounts or changing your existing accounts.

At the same time, request a copy of your credit report from each of the credit bureaus. They must give you a free copy if your report is inaccurate because of fraud or if you have been denied credit. Otherwise, you can obtain a copy for a small fee. The three major credit bureaus are:

Second, contact your creditors for any accounts that have been tampered with or opened fraudulently. Such creditors might include credit card companies, phone companies and other utilities, and banks and other lenders. Ask to speak with someone in the creditor's security or fraud department and follow your conversation with a letter. Credit card companies must be notified in writing as part of the statutory consumer protection procedure for resolving errors on credit card billing statements.

Third, file a report with your local police or the police in the community where the theft occurred. Get a copy of the police report in case you need proof of the crime when dealing with creditors.

It's also a good idea to contact the U.S. Secret Service. Although the Secret Service generally investigates cases in which the dollar loss is substantial, your information might provide evidence of a larger pattern of fraud requiring their involvement. You can find a local office in the telephone directory, or go to www.treas.gov/usss.

OTHER STEPS 

Stolen mail. If an identity thief has stolen your mail to get a new credit card, bank, and credit card statements, pre-screened credit offers, or tax information, or has falsified change-of-address forms, report the theft to your local postal inspector. Contact the local post office for the phone number or use the Postal Service Web site (www.usps.gov/websites/depart/inspect).

Change of address on credit card accounts. If you discover that an identity thief has changed the billing address on an existing credit card account, close the account. When you open a new account, ask that a password be required before any inquiries or changes can be made on the account.

Bank accounts. If you have reason to believe that an identity thief has tampered with your bank accounts, checks, or ATM card, close the accounts immediately. Again, when opening new accounts, insist on password-only access to the accounts.

Stolen or misused checks. Place stop payments on them and request the major check verification companies to notify retailers using their databases not to accept these checks. The major check verification companies are:

• National Check Fraud Service: (800) 571-2143;
• SCAN: (800) 262-7771;
• TeleCheck: (800) 710-9898 or (800) 927-0188;
• CrossCheck: (707) 586-0551;
• Equifax Check System: (800) 437-5120; and
• International Check Services: (800) 526-5380.

Investments. If you believe that an identity thief has tampered with your security investments or a brokerage account, immediately report the problem to your broker or account manager and to the Securities and Exchange Commission (http://www.sec.gov/).

Phone service. If an identity thief has set up new phone service in your name or is misusing your existing regular or cellular phone service, contact your service provider immediately and cancel the account. If you're having trouble settling the issue with the local phone company, contact the local Public Utility Commission for local service providers or the Federal Communications Commission for long-distance and cellular providers at (888) CALL-FCC or go to http://www.fcc.gov/complaints.

Employment. If you believe that someone is using your SSN to apply for a job, call the Social Security Administration's Fraud Hotline at (800) 269-0271. Also call the SSA at (800) 772-1213 to verify the accuracy of the earnings reported on your SSN and to request a copy of your Social Security Statement. Follow up your calls in writing.

Driver's license. If you suspect that an identity thief is using your name or SSN to get a driver's license or a non-driver's ID card, contact the Department of Motor Vehicles. If your state uses your SSN as a driver's license number, ask to substitute another number.

Bankruptcy. If you believe that someone has filed bankruptcy using your name, write to the U.S. Trustee in the Region where the bankruptcy was filed. For a listing of the U.S. Trustee Program's Regions, go to www.usdoj.gov/ust. You should also file a complaint with the U.S. Attorney or the FBI in the city where the bankruptcy was filed.