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ID Theft: Your Wallet - A Loser's Manual
A thief who takes your wallet can steal your identity, too, and use your good name to run up big bills.
Here's how to protect your money and your credit record and your sanity if your wallet is lost or stolen.
Consider this: Your wallet is stolen. You immediately call your bank and credit card company to report
the problem, close old accounts and open new ones. You feel fairly confident that the incident is behind
you.
But a few weeks later you receive a threatening notice to pay a "past-due" bill for some merchandise you
know you never purchased. Next, your application for an auto loan gets rejected because of a poor credit
history, when you know you never missed a loan payment or bounced a check in your life. Shocked, you
immediately call one of the major credit bureaus (also called a credit reporting agency), which informs
you that numerous accounts have been opened, using your name and Social Security number, and with
thousands of dollars in debts to stores, credit cards, utilities and other companies. The good news: Your
actual liability for these unauthorized purchases is limited by law or industry standards. The bad news:
You still spend many frustrating hours trying to clear your name and straighten out your credit history.
Sound like fiction? It's not. It could happen to you any time, anywhere. We're talking about "identity
theft" - situations where a con artist obtains charge cards or enough personal information to establish new
accounts in your name.
"Most of us assume that thieves are interested in cash when they steal a wallet, but in many cases the
cash may be the least valuable item," says Pete Hirsch, a fraud examiner with the FDIC's Division of
Supervision in Washington. "Your wallet can provide a criminal with ready access to sensitive information
that can be used to steal your identity, drain bank accounts and make it difficult for you to obtain credit in
the future."
Identity theft is on the rise in the United States and, unfortunately, many consumers don't know how to
adequately protect themselves or the contents of their wallets. People too often assume that when a
wallet is lost or stolen they simply need to cancel their "plastic" (credit, debit, and ATM cards) and
replace lost identification. But there are other steps, including some preventive measures, that you can
take to greatly reduce your chances of becoming a victim.
Here's a collection of tips and information from FDIC Consumer News that we think can help you protect
against all kinds of financial fraud, even if you never lose your wallet. Remember: A con artist doesn't
need to steal your wallet to steal your money and your identity. A sophisticated thief simply needs a little
information about you - perhaps one of your credit card numbers or your Social Security number - to
make purchases or obtain new accounts in your name. So some of the suggestions in this report can
help.
Preventive Measures
One simple way to protect yourself against identity theft is to limit the amount of confidential information
you carry in your wallet. Experts recommend that you not carry around bank account numbers, personal
identification numbers (PINs), passports, birth certificates, and most importantly, Social Security cards.
(Although many states continue to use Social Security numbers on drivers' licenses, this practice is
changing.)
Avoid carrying more blank checks than you really need. Not only can a thief cash checks or use them for
purchases, but a crook also can make use of the sensitive information often pre-printed on your checks
(your address, bank account number, even your telephone number). Many consumers even print their
driver's license number or Social Security number on their checks. That's a definite no-no, because either
number could help a thief apply for a loan, credit card or bank account in your name.
Keep good backup information about your accounts, just in case your wallet is lost or stolen. You'll want
account numbers and phone numbers that can be used to report your losses or request new cards or
emergency cash. Some people recommend photocopying your credit, debit, and ATM cards, as
well as your driver's license and passport information. Another approach is to simply list key numbers on a
handy sheet of paper, and we've given you a start with this checklist.
"Keep these numbers in safekeeping or else they can
become tools for someone with criminal intent," says Deirdre Foley of the FDIC's Division of Compliance
and Consumer Affairs in Washington. You'll also want ready access to these papers, too. That's why a
safe deposit box or other restricted area might not be a good storage place for these numbers in case
you need immediate access at night or on a weekend or holiday.
If you're going on vacation, Ken Baebel, also from the Division of Compliance and Consumer Affairs,
recommends taking along a list of the toll-free telephone numbers for your banking and credit card
companies not your card numbers and keeping the list in a safe place other than your wallet. "If you
lose your wallet while you're away from home, having those phone numbers will help you quickly report
the problem and get replacement cash or cards," he says.
Why not take a list of card numbers with you on your trip? "The card numbers alone can be just as
valuable to a thief as the actual cards themselves, if not more valuable," explains Gene Seitz, a fraud
investigator in the FDIC's Division of Supervision in Washington. "If someone steals your wallet, you'll
probably notice that right away. But if someone steals a list of card numbers from your suitcase, you
might not be so quick to realize that, and that just gives the thief more time to run up fraudulent charges."
Consider canceling any credit cards you don't really need or use. Among the reasons: A thief can dust off
a "dormant" card and use card numbers and other personal information to make purchases or get a new
card. You'll only find out about the problem when the collection notices arrive at your address.
Never give out personal information (such as your Social Security number, credit card numbers or your
address) over the telephone unless you initiate the call, and it's to a well-known and trusted outfit. Also
try not to provide personal information when using a check or plastic for purchases at a cash register.
Many states even prohibit merchants from requiring personal details.
Don't just toss away those credit card applications you receive in the mail and don't intend to apply for.
Shred them as best you can. Crooks can easily use these applications to establish accounts in your
name and then change the mailing address so you're unaware of the fraud until it's too late. Also, if you
don't want to receive unsolicited credit card applications in the mail, by law you can demand that your
name be removed from the marketing lists that credit bureaus sell to credit grantors looking for new
customers. To "opt out" of these mailings, call any one of the following credit bureaus at these toll-free
numbers specifically established for this purpose: Equifax at (800) 556-4711, Experian at (800) 353-0809,
or Trans Union at either (800) 241-2858 or (800) 680-7293.
Review your credit card bills and your checking account statements as soon as they arrive, to ensure
that no fraudulent activity is taking place. Also make sure you get a statement from your creditors every
month. If no statement arrives, that could be a sign that someone has changed your billing address for
fraudulent purposes. And, finally, periodically request a copy of your credit report and check for signs that
someone has opened accounts in your name. The three major credit bureaus and their toll-free numbers
for requesting copies of your credit report are: Equifax at (800) 685-1111, Experian at (800) 682-7654, and
Trans Union at (800) 888-4213. If you've been denied credit, you may be entitled to a free copy of your
report.
While it may seem obvious, it can't hurt to mention a few basic words about protecting your wallet: Don't
take out your wallet until you actually need it, and don't forget your wallet before leaving a restaurant,
store or any public place. And never put your wallet down alongside a cash register, in a phone booth or
even on top of your car.
A good rule of thumb: Never set down your wallet unless your hand is attached to it.
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Copyright © FDIC Consumer News. Reprinted with permission.
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