In today’s technologically advanced society, identity theft is a common and serious offense. The Identity Theft and Assumption Deterrence Act of 1998 defines identity theft as the following: when someone “knowingly transfers or uses, without lawful authority, a means of identification of another person with the intent to commit, or to aid or abet, any unlawful activity that constitutes a violation of Federal law, or that constitutes a felony under any applicable State or local law.”
Identity theft occurs when someone uses your personal identifying information, such as your name, Social Security number, or credit card number) without your permission to commit fraud or other types of crime. According to the Federal Trade Commission (FTC, 2009), as many as 9 million Americans are affected annually.
The Internet and automated teller machines (ATMs), now widely used for a variety of financial transactions, such as shopping online and making cash withdrawals, are often cited as two contributing factors to identity theft.
If you’re concerned about your personal information getting into the wrong hands, familiarize yourself with the following ways a thief might obtain information with the intent to steal money or commit other crimes:
Old-Fashioned Stealing. Years ago, if your handbag was stolen or if your wallet was pickpocketed, you probably only worried about the loss of cash. Today, these losses could result in thousands of dollars in fraudulent purchases with credit cards. Thieves also steal personnel files and customer data from companies for Social Security numbers and other information.
“Dumpster Diving.” If you dispose of trash in a dumpster, others may have access to it. Thieves might “dive in” and easily find the information they need via old bank statements, credit card receipts, and bills, which can wreak financial havoc in your name.
Intercepting Mail. Thieves regularly watch mailboxes, waiting for the arrival of the next credit card pre-approval letter. They can then call the credit card company posing as the intended recipient in order to open an account. While you cannot stop all solicitations, you can choose to “opt out” of receiving some of these letters. Call 1-888-5-OPTOUT to minimize unsolicited mail and phone calls.
“Shoulder Surfing.” Shoulder surfing occurs when a thief lurks nearby while you provide personal information to another person or enter it into a machine. Typically, the thief peers over your shoulder and procures your information while you continue with your transaction.
Hacking. Many people rely on the Internet to manage their personal finances. While it can be a useful tool for banking or paying bills, the Internet can also be a haven for prospective identity thieves. Entering your personal information into an unsecured website may allow an experienced hacker to obtain that information.
Phishing: Some thieves also try to obtain personal information via email. They pretend to be financial institutions or companies and send spam or pop-up messages that ask you to reveal personal information.
Pretexting: In a similar way, thieves use false pretenses to trick you into revealing your personal information over the phone. They may pose as a representative from your bank, insurance company, or other service provider.
Skimming: After placing a special device on card processors and ATMs, thieves may be able to steal credit or debit card numbers when you swipe your card to make a purchase.
Protecting Yourself
Consider the following steps to help keep your name and credit protected:
- If you must give out personal information while making a purchase, be aware of your surroundings and do it discreetly.
- Order a copy of your credit report and check it for accuracy. Remember to do this at least once a year to stay informed of any significant changes in your credit history. You can contact any of the three major credit bureaus (listed below) for a copy. Under Federal law, you may request one free copy per year.
- Experian: 888-EXPERIAN (888-397-3742) Fraud Department: 888-EXPERIAN www.experian.com
- Equifax: 800-685-1111 Fraud Department: 800-525-6285 www.equifax.com
- TransUnion: 800-888-4213 Fraud Department: 800-680-7289 www.transunion.com
- Do not give out personal information over the phone unless you have made the call yourself. This will help ensure that only the people and businesses you have chosen to contact have access to your information.
- Purchase a paper shredder to destroy any documents, receipts, or mail that contain information an identity thief might find useful, such as bank statements or credit card pre-approval forms.
- Avoid using your Social Security number unless necessary. This includes using the number on your driver’s license instead. Most states now offer the option of choosing an alternate number.
- Secure your personal computer using firewall programs, anti-virus software, and secure browsers. Minimizing online access to your personal information can help thwart uninvited guests.
It Happened—What Do I Do?
Even after taking precautions, you may still be vulnerable to identity theft. If you have become a victim of identity theft, here are some ways to facilitate the process of clearing your name:
- Contact the Federal Trade Commission’s Identity Theft Hotline at 1-877-IDTHEFT (877-438-4338).
- Create a list of all the creditors whom you suspect have received fraudulent information. Keep records of all communications, including phone conversations and written or electronic correspondence.
- Inform the fraud departments of the three major credit bureaus (numbers listed above) and ask that a “fraud alert” be attached to your file. Although the credit bureaus are not required to attach “fraud alerts,” they generally will do so. This temporarily alerts creditors that fraudulent activity may have occurred on your accounts.
- Terminate any accounts you were not responsible for opening and any existing accounts that were fraudulently used.
- Report any relevant information you have to the police, and be sure to provide copies of all relevant documents.
Depending on the type of fraud that has been committed, you may need to take some additional steps. For example, if your Social Security number was used under pretenses, contact your local Social Security office. Or, if an identity thief created a cellular phone account with your billing information, contact the Federal Communications Commission (FCC).
Education and Reaction
Educating yourself on how to avoid becoming a victim and how to react should you become a victim are the first steps in the fight to stop identity theft. If you become a victim of identity theft, it can be financially as well as emotionally devastating. With your personal information, a criminal might be able to open a credit card account and make fraudulent charges, or in more extreme cases, he or she may even assume your identity to get a job, file a tax return, and commit more serious crimes—all under your name. These are just some of the ways criminals may commit identity theft. Take steps now to protect yourself and your loved ones. For more details on avoiding identity theft, visit the Federal Trade Commission (FTC) online at www.ftc.gov.
"ID Theft: How Does it Happen?" FMeX. 2015.
"Identity Theft." FMeX. 2015.
