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Part I: ID Theft - When Bad Things Happen To Your Good Name
Listen to these consumers...
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.
...From a consumer complaint to the FTC
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.
...From a consumer complaint to the FTC
Help! Someone is using my Social Security number to get a job.
...From a consumer complaint to the FTC
My elderly parents are victims of credit fraud. We don't know what to do.
Someone applied for credit cards in their name and charged nearly $20,000. Two
of the card companies have cleared my parents's name, but the third has turned the
account over to a collection agency. The agency doesn't believe Mom and Dad
didn't authorize the account. What can we do to stop the debt collector?
...From a consumer complaint to the FTC, October 7, 1999
Introduction
In the course of a busy day, you may write a check at the grocery store, charge tickets to a ball
game, rent a car, mail your tax returns, call home on your cell phone, order new checks or apply
for a credit card. Chances are you don't give these everyday transactions a second thought. But
someone else may.
The 1990's spawned a new variety of crooks called identity thieves. Their stock in trade are
your everyday transactions. Each transaction requires you to share personal information: your
bank and credit card account numbers; your income; your Social Security number (SSN); and
your name, address and phone numbers. An identity thief co-opts some piece of your personal
information and appropriates it without your knowledge to commit fraud or theft. An
all-too-common example is when an identity thief uses your personal information to open a credit
card account in your name.
Can you completely prevent identity theft from occurring? Probably not, especially if someone is
determined to commit the crime. But you can minimize your risk by managing your personal
information wisely, cautiously and with heightened sensitivity.
The Congress of the United States asked the Federal Trade Commission to provide information
to consumers about identity theft and to take complaints from those whose identities have been
stolen. If you've been a victim of identity theft, you can call the FTC's Identity Theft Hotline
toll-free at 1-877-IDTHEFT (438-4338). The FTC puts your information into a secure
consumer fraud database and may, in appropriate instances, share it with other law enforcement
agencies and private entities, including any companies about which you may complain.
The FTC, working in conjunction with other government agencies, has produced this booklet to
help you guard against and recover from identity theft.
How Identity Theft Occurs
Despite your best efforts to manage the flow of your personal information or to keep it to
yourself, skilled identity thieves may use a variety of methods - low- and hi-tech - to gain access
to your data. Here are some of the ways imposters can get your personal information and take
over your identity.
How identity thieves get your personal information:
- They steal wallets and purses containing
your identification and credit and bank cards.
- They steal your mail, including your bank
and credit card statements, pre-approved
credit offers, telephone calling cards and tax
information.
- They complete a "change of address form" to
divert your mail to another location.
- They rummage through your trash, or the
trash of businesses, for personal data in a
practice known as "dumpster diving."
- They fraudulently obtain your credit report by
posing as a landlord, employer or someone
else who may have a legitimate need for —
and a legal right to — the information.
- They get your business or personnel records
at work.
- They find personal information in your home.
- They use personal information you share on
the Internet.
- They buy your personal information from
"inside" sources. For example, an identity
thief may pay a store employee for
information about you that appears on an
application for goods, services or credit.
How identity thieves use your personal information:
- They call your credit card issuer and,
pretending to be you, ask to change the
mailing address on your credit card account.
The imposter then runs up charges on your
account. Because your bills are being sent to
the new address, it may take some time
before you realize there's a problem.
- They open a new credit card account, using
your name, date of birth and SSN. When
they use the credit card and don't pay the
bills, the delinquent account is reported on
your credit report.
- They establish phone or wireless service in
your name.
- They open a bank account in your name and
write bad checks on that account.
- They file for bankruptcy under your name to
avoid paying debts they've incurred under
your name, or to avoid eviction.
- They counterfeit checks or debit cards, and
drain your bank account.
- They buy cars by taking out auto loans in
your name.
Minimize Your Risk
While you probably can't prevent identity theft entirely, you can minimize your risk. By
managing your personal information wisely, cautiously and with an awareness of the issue, you
can help guard against identity theft:
- Before you reveal any personally identifying information, find out how it will be used and
whether it will be shared with others. Ask if you have a choice about the use of your
information: can you choose to have it kept confidential?
- 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 an identity thief has taken over your credit card
account and changed your billing address to cover his tracks.
- Guard your mail from theft. Deposit outgoing mail in post office collection boxes or at
your local post office. Promptly remove mail from your mailbox after it has been
delivered. If you're planning to be away from home and can't pick up your mail, call the
U.S. Postal Service at 1-800-275-8777 to request a vacation hold. The Postal Service
will hold your mail at your local post office until you can pick it up.
- 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 SSN or your phone number, or a series of consecutive numbers.
- Minimize the identification information and the number of cards you carry to what you'll
actually need.
- 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're dealing with. Identity thieves
may pose as representatives of banks, Internet service providers and even government
agencies to get you to reveal your SSN, mother's maiden name, financial account numbers
and other identifying information. Legitimate organizations with whom you do business
have the information they need and will not ask you for it.
- Keep items with personal information in a safe place. To thwart an identity thief who may
pick through your trash or recycling bins to capture your personal information, tear or
shred your charge receipts, copies of credit applications, insurance forms, physician
statements, bank checks and statements that you are discarding, expired charge cards and
credit offers you get in the mail.
- Be cautious about where you leave personal information in your home, especially if you
have roommates, employ outside help or are having service work done in your home.
- Find out who has access to your personal information at work and verify that the records
are kept in a secure location.
- Give your SSN only when absolutely necessary. Ask to use other types of identifiers
when possible.
- Don't carry your SSN card; leave it in a secure place.
- Order a copy of your credit report from each of the three major credit reporting agencies
every year. Make sure it is accurate and includes only those activities you've authorized.
The law allows credit bureaus to charge you up to $8.50 for a copy of your credit report.
Your credit report contains information on where you work and live, the credit accounts that
have been opened in your name, how you pay your bills and whether you've been sued, arrested
or filed for bankruptcy. Checking your report on a regular basis can help you catch mistakes and
fraud before they wreak havoc on your personal finances. See "this article" for details about
removing fraudulent and inaccurate information from your credit report.
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Copyright © Federal Trade Commission. Reprinted with permission.
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