Beware of Identity Theft

Identity theft, or ID theft, is becoming increasingly more prevalent in our society. But what is the definition of  identity theft, and how can it be prevented?

Stealing Personal Information: Identity Theft

What does identity theft mean? When you think of theft, what's the first thing that comes to mind? Stealing a car? Or maybe it's stealing from a store? What you probably don't think of is someone stealing your identity. If someone has stolen your identity, it means your personal information has been taken and possibly used without your knowledge for the purpose of committing fraud or theft. Examples of information that can be stolen from you are:

• Your name

• Your address

• Your Social Security Number

• Your date of birth

• Your credit card number

Once someone has this information, it is possible to:

• Charge items and services on your credit card

• Obtain and use credit in your name

• Start a cellular phone agreement in your name

• Open a checking account in your name

• Secure a bank loan in your name

• Apply for a job using your Social Security Number

What If It Happens to You?

What can you do if you think your identity has been stolen? You can get valuable information from the U.S. Federal Trade Commission (FTC). There are two laws that address issues concerning identity theft: the 1998 Identity Theft and Assumption Deterrence Act, or Identity Theft Act, and the 2003 Fair and Accurate Credit Transactions Act (FACTA).

The Identity Theft Act makes stealing personal information and using it fraudulently a federal crime. It also makes the FTC the federal agency responsible for tracking and taking action on identity theft complaints.

FACTA requires that certain measures to combat identity theft be made available to consumers, including being able to “opt out” of credit card offers (and having this information on every credit card offer you receive), being entitled to a free credit report once a year, and requiring that all credit card receipts show only the last five numbers of the card.

The FTC is the federal agency that provides a database and clearinghouse for identity theft complaints and helps consumers who have been targeted by this type of criminal activity. The FTC does the following:

• Logs all identity theft complaints

• Provides information about identity theft

• Refers victims to appropriate agencies

• Maintains a national Do Not Call registry for consumers who do not want to receive telemarketing calls

For more information, visit the FTC Identity Theft website. If you are an identity theft victim, you can call the FTC Identity Theft Hotline at 877-IDTHEFT (438-4338). You can also submit a Consumer Complaint online to the FTC.

Help is Available

The FTC will guide you through the following steps to address the situation. First, you should contact the fraud units of the three major credit bureaus. You can reach them by phone at:

• Equifax
  800-525-6285

• Experian
  888-397-3742

• TransUnion
  800-680-7289

The credit bureaus will put a fraud alert and a victim's statement in your file asking all creditors to contact you before opening new accounts or making changes to existing accounts.

Next, contact the creditors of the accounts that have been opened or modified as a result of the fraudulent activity. It's a good idea to call them immediately and then follow up in writing to ensure your rights are preserved. You'll have to close your existing accounts and open new ones. It also makes sense to put a password on the new accounts so no one other than you has access to them.

Finally, you need to file a police report. The Identity Theft Act stipulates that ID theft is a crime; therefore, it must be reported. You can file a report at your local police department or at the police department in the town where the theft occurred. Make sure to get a copy of the police report in case you ever need to show proof of the crime to other lenders or your insurance company. See the FTC booklet Take Charge: Fighting Back Against Identity Theft for more detailed information.

An Ounce of Identity Theft Prevention

You now know what to do if you are the victim of ID theft. But what can you do to safeguard your personal information?

• Unless it's absolutely necessary, don't carry extra credit cards or your Social Security card. Leave these items securely at home or, better yet, in a safe deposit box.

• Review your credit report once a year and correct inaccurate information. You are entitled to a free copy of your credit report every 12 months; you can also get a free credit report if you are an identity theft victim, but you must first place a fraud alert with the credit bureaus (Experian, Equifax, andTransUnion). To get your free once-a-year credit report, visitAnnualCreditReport.com. You can request a credit report by phone (1-877-322-8228) or write to:
  
  Annual Credit Request Service
  P. O. Box 105281
  Atlanta, GA 30348-5281

• Be careful about giving out information over the phone. Be sure you are speaking with a company that you trust. If you didn't make the call, there's no reason you should provide personal information to the caller. You can place you name on the FTC's national Do Not Call registry. Under the law, telemarketers are forbidden from calling you if your name is on this list. The service is free and your name remains on the list for five years.

• Pay close attention to documents containing your personal information. It's a good idea to destroy or shred anything with information on it that can be used by someone else. This includes credit card receipts, utility bills, and pre-approved offers for credit cards. In fact, you may want to stop receiving pre-approved credit card offers. You can place your name on a list at the OptOutPrescreen.com website or call them at 1-888-5-OPTOUT (567-8688). For more information about your privacy options, read the Reality Check newsletter article Opting Out for Peace and Security, or the Bankrate.com article Opt-Out Options.

• When transacting business online, be sure to read the privacy and security statements on the website. These statements will let you know how your information is collected and shared on the Internet. It's a good idea to look for sites that transfer data on a secure server. See the FTC's OnGuardOnline.gov website for more resources about Internet fraud. Also read the related articles in the CareOne Credit Knowledge Center Library.

Follow these steps to help insure that you won't be a victim of identity theft. If you pay attention to these details, it will minimize your risks. For more information about identity theft, visit the Department of Treasury's Identity Theft Resources website.

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Related Credit Protection articles:

• Fraud: Don’t Become a Victim - On your phone, through the mail, and even at your door- you could be a victim of fraud almost anywhere. Protect yourself and your family before it’s too late.

• Know Your Service Provider through the Better Business Bureau - Unsure about where to take you car for repairs? Planning on buying from an online store? Check out the BBB to make sure you’re using a reputable company.