July 2003 - Identity Theft When Good Names Get Bad Raps Identity Theft is the fastest growing crime in America, affecting approximately 900,000 new victims each year!" screams the Identity Theft Prevention and Survival website. "It is the number one problem facing our law enforcement community today," said Sonny Colley, president of Consumer Credit Counseling Service (CCCS) of Savannah. The frightening reality is that everybody is at risk. Instances of identity theft exploded in the 1990s, and the problem continues to grow. "Everything is automated today," said Colley. This makes identity theft easier to perpetrate than ever before, thanks to the relative ease with which criminals can gain access to confidential information. But it's not only professional identity thieves with the technological wherewithal to hack into business and government computer systems that we have to worry about. For example, in July 2002 a carrier for a local newspaper stole mail from several homes on her route in Bluffton, making off with at least one credit card and running up fraudulent charges. "The suspect has been apprehended and the case is going to federal court," said Debbie Szpanka, public information officer with the Beaufort County Sheriff's Office (BCSO). In this case, the credit card issuer notified the victim of suspicious transactions and the issue was easily resolved. Also, in June 2002 a Beaufort woman dropped her purse while entering her car and drove away. An "opportunist" found the purse and used personal information in the purse to pose as the woman's husband. The thief succeeded in opening fraudulent credit accounts and establishing cell phone service, all in the husband's name. A break in the case came a few weeks later when the thief attempted to use a fraudulent credit card to purchase a computer by telephone. An alert sales representative raised a red flag when the thief could not properly identify himself as the rightful credit card owner. "He gave just enough information about himself to make it fairly easy for me to track him down and make an arrest," said Chris Wilson of the BCSO, the investigator assigned to the case. Because the perpetrator was stopped relatively quickly, the illegal transactions ceased and the couple restored their credit record without further damage. Cases are not always as simple as these, though. Crime and Consequences Millions of transactions requiring confidential information occur every day, providing a target-rich environment for identity thieves. The tragedy is that the onus is on you to clear your good name. It can take months, even years, and cost thousands of dollars. Victims suffer humiliation and stress. Some may lose job opportunities, be refused loans, or even be arrested for crimes they didn't commit. Identity thieves will, for example, open credit card accounts in your name, change the mailing address on your credit card accounts and run up charges, establish cellular phone service and write bad checks on accounts opened in your name. The methods they employ to obtain confidential information range from stealing wallets to more high-tech styles like co-opting personal information on the Internet. Other examples include stealing mail, rummaging through trash for personal data, fraudulently obtaining credit reports, running business scams, often through email, and stealing files from, or hacking into, electronic files of offices where you work or do business. If it happens to you If an identity thief strikes, three basic actions are appropriate in nearly every case: o Request a "fraud alert" in your file with the three major credit bureaus: Equifax (800) 525-6285; Experian (888) 397-3742 and TransUnion (800) 680-7289 as well as a statement asking that creditors call you before performing any activity. Also, order copies of your credit reports and review them carefully for fraudulent activity. o Close all accounts that you know or believe have been tampered with. o File a police report. Help is available from law enforcement and crime prevention organizations at all levels. CCCS provides counseling and advice. Locally, CCCS, with offices in Savannah and Hilton Head, facilitates 230 workshops per year on ID theft, according to Colley. The Federal Trade Commission (FTC) offers a booklet, "When Bad Things Happen To Your Good Name," which covers: how identity theft occurs; minimizing risk; advice on sharing personal information; what to do in case of identity theft; advice on resolving credit problems and fraud; and information on relevant federal and state laws. It is available for download at www.consumer.gov/idtheft or by calling the hotline at (877) IDTHEFT (438-4338). The FTC ID Theft Hotline provides assistance in continuing the battle against identity theft. Counselors take complaints and advise on how to deal with the credit-related problems resulting from the crime. Additionally, the FTC, banks, credit grantors and consumer advocates have developed an ID Theft Affidavit - a form used to report information to multiple organizations, simplifying the process of disputing fraudulent charges. "From Victim to Victor, A Step-by-Step Guide to Ending the Nightmare of Identity Theft," by Mari J. Frank, Esq., an attorney, privacy consultant and identity-theft survivor, is another helpful resource. The book is an instruction manual for regaining your credit and identity and also includes attorney-composed form letters and tips and techniques for combating identity theft. Also by Frank is the "Identity Theft Survival Kit, A Complete Package for Restoring Your Credit and Peace of Mind," which includes "From Victim to Victor" plus a computer disk containing electronic copies of form letters and taped interviews with identity-theft experts. Both can be purchased at www.identitytheft.org. An ounce of prevention Total immunity to identity theft is impossible, but you can minimize your risk. There are a number of measures that everyone should employ. Placing passwords on credit card, bank and phone accounts, securing personal information in the home and being aware of information security procedures at work are some examples. Pay particular attention when revealing personal information. Never give out personal information on the phone, by mail or over the Internet unless you initiated the contact or are certain that you trust whom you are dealing with. Find out how it will be used and secured and whether it will be shared with others. Ask if you have a choice about the use of your information. Some businesses have a legitimate need for your Social Security number (SSN). Others don't. If someone asks for your SSN, ask them why they need it and how it will be used. Ask if you are required by law to provide it and what happens if you don't. If they cannot answer these questions, keep the number to yourself. In the "Information Age" the speed and alacrity with which information is shared and used simplifies our lives and creates opportunities for prosperity as never before. But the convenience comes with a responsibility. It is up to you to protect your personal information and guard against theft. Resources: o Identity Theft Prevention and Survival: (800) 725-0807, www.identitytheft.org. o Consumer Credit Counseling Service: (800) 821-4040, www.cccssavannah.org. o Federal Trade Commission (FTC): (877) IDTHEFT (438-4338), www.consumer.gov/idtheft. ™ When Your Wallet or Purse is Lost or Stolen Identity thieves can use information found in your wallet or purse to establish fraudulent accounts in your name. If your wallet or purse is lost or stolen, the Federal Trade Commission suggests that you take the following actions: o File a police report immediately. Be sure to get a copy in case your bank, credit card company or insurance company requires proof of the crime. o Cancel each credit and charge card and get new cards with new account numbers. o Call the fraud departments of the major credit reporting agencies: Equifax (800) 525-6285; Experian (888) 397- 3742 and TransUnion (800) 680-7289. Ask them to put a "fraud alert" on your account and add a "victim's statement" to your file requesting that creditors contact you before opening new accounts in your name. o Ask the credit bureaus for copies of your credit reports. Review your reports carefully to make sure no additional fraudulent accounts have been opened in your name or unauthorized changes made to your existing accounts. In a few months, order new copies of your reports to verify your corrections and changes and to make sure no new fraudulent activity has occurred. o Report the loss to your bank if your wallet or purse contained bank account information, including account numbers, ATM cards or checks. Cancel checking and savings accounts and open new ones. Stop payments on outstanding checks. o Get a new ATM card, account number and personal identification number (PIN) or password. o Report your missing driver's license to the Department of Motor Vehicles. If your state uses your Social Security number as your driver's license number, ask to substitute another number. o Change the locks on your home and car if your keys were taken. Don't give an identity thief access to even more personal property and information. ™