Incidents of identity theft have more than doubled during the past three years and represent the leading consumer fraud reported to the Federal Trade Commission in 2003, accounting for 42 percent of all complaints.
Many identity fraud cases begin with the simple theft of a credit card number, as easy as taking the information from a paper receipt.
Stolen credit cards and Social Security numbers (SSN) can devastate your life, because when thieves effectively steal your identity they can do one or all of the following:
Open new credit card accounts using your name, birth date and SSN. Then they use the new account, don’t pay the bills and the delinquent account is reported on your credit record.
Call your credit card issuer pretending to be you and change the mailing address on your credit card account. Then they run up charges on your account, and because your bills are being sent to the new address, you may not realize there’s a problem.
Establish cellular phone service in your name.
Open a bank account in your name and write bad checks on that account.
You may not know your identity has been stolen until:
1. You receive bills for a credit card account you never opened.
2. Your credit report includes debts you never knew you had.
3. Billing cycles pass and you don’t receive a statement.
4. Charges appear on your bills that you didn’t authorize, didn’t sign for and know nothing about.
Among the common sense steps you can take to protect your SSN or credit card numbers from being stolen:
Don’t carry your Social Security card in a wallet or purse.
If your state uses SSNs for driver’s licenses, request a random license number.
Review your credit history every six months.
Always ask why a merchant needs your SSN and how it’ll be used. If you feel uneasy giving your SSN in a situation, don’t give it.
Remove your name from mailing lists you didn’t ask to be on.
Release your SSN only to agencies that require it for actions that you have initiated.
Never give your SSN or credit card number to unsolicited telephone callers or on the Internet, such as in e-mails. See the Federal Trade Commission’s Web site, www.ftc.gov, for current identity theft scams.
Shred documents containing your SSN and credit card information before you discard them.
Contact your creditors or service providers if expected bills don’t arrive.
If you do any catalog, phone or online shopping, there are a number of prudent practices you should follow that will help you shop safely.
Before you buy high-ticket items from an unknown seller, check their location and reputation with the Better Business Bureau or the state attorney general’s office in that state.
Always protect your privacy. Provide personal information only if you know who’s collecting it and why and how it’s going to be used. Never give your SSN to anyone on the Internet.
Buy online only from vendors with secure servers that protect your financial information with online orders. These secure servers are indicated by an unbroken key or padlock icon at the bottom of the browser window.
Guard your online passwords and use different passwords to make online purchases. Don’t use your log-in or network password for online purchases.
Credit card payments offer the greatest protection because transactions are protected by the Fair Credit Billing Act. Before you buy, understand the terms of purchase, refund and return policies, as well as any restrictions or additional costs.
Check delivery dates when you place an order.
Vendors usually tell you when to expect delivery, and federal law requires them to ship items as promised or within 30 days after the order date.
Print out Web pages with details about the transaction, including the seller’s name and URL, or Web site address, and any warranties or return and refund policies in case you’re not satisfied.
If your credit card or Social Security card is stolen, simply asking the Social Security Administration or credit card companies to assign you new numbers will not solve your problem.
Do three things. First, contact the fraud departments of each of the three major credit bureaus (see below) and report your stolen identity.
Ask that a “fraud alert” be placed on your file and that no new credit be granted without your approval.
Only use fraud alert and fraud victim statements if you believe you may be a fraud victim, because if you aren’t, the fraud alert makes it much harder to get legitimate credit.
Next, if any accounts have been fraudulently accessed or opened, contact the security departments of the appropriate creditors or financial institutions and close these accounts. Put passwords on any new accounts.
Finally, file a report with your local police or the police where the identity theft took place. Get a copy of the report in case the bank or the credit card company requires proof of the crime later on.
Also contact the fraud hotlines of the Social Security Administration at 1-800-269-0271 and of the Federal Trade Commission at 1-877-382-4357.
Credit bureaus:
Equifax
Report fraud: 1-800-525-6285
Order credit report:
1-800-685-1111
Web site: www.equifax.com
Experian
Report fraud: 1-888-397-3742
Order credit report:
1-888-397-3742
Web site: www.experian.com
TransUnion
Report fraud: 1-800-680-7289
Order credit report:
1-800-916-8800
Web site: www.tuc.com
The Federal Trade Commission has a free brochure called “ID Theft: When Bad Things Happen to Your Good Name.” You can visit them at www.consumer.gov/idtheft to request a copy. (BP)
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