An identity thief doesn’t just steal your credit card and personal information to start buying madly in your name. You get new cards, open new loans, and leave a long trail of unpaid bills in your name. He even uses his identity to commit acts of terrorism or other crimes. What are you going to do?
Identity theft happens more often than you’d like to believe, and it’s often done by someone you know. This is what happened to Linda Foley, a magazine writer, who learned that her own employer had stolen her identity to open cell phone and credit card accounts. Now, Foley, along with her husband, are defending themselves as co-executive directors of the Identity Theft Resource Center (ITRC) in San Diego, California.
Can this happen to you?
After Bridget J. Thomas learned that a bank employee stole her identity at a branch 300 miles from the one she used, she was shocked. And that was just the beginning of her nightmare! When the robber was caught, she was working at a different bank in a different state. After her arrest, collection agencies continued to harass Ms. Thomas.
Putting things in order might not be so easy, or so fast!
Setting the record straight is the tip of a nightmarish iceberg that can take months, even years, often with undue pain and suffering for the victim. In severe cases, victims spend an average of 600 hours and $1,400 in out-of-pocket costs to repair their credit. Until they can prove their innocence, they are more likely to be:
• charged higher rates for insurance and credit card charges,
• turned down for student loans or home mortgages,
• arrested for crimes you did not commit.
• unable to get or keep a job,
A call from a collection agency or a loan denial is often the only indication that your identity has been stolen.
A thief needs only one thing to open the doors to his windfall: your Social Security number. Unfortunately, it is routinely used by government agencies, healthcare providers, utility companies, merchants, employers, and financial institutions. Often, your Social Security number is publicly available. This is how General John M. Shalikashvili, former Chairman of the Joint Chiefs of Staff, became a victim. His Social Security number and those of many other military officers were published in the “Congressional Record” and later posted on the Internet. The thieves used their identities to open 273 new credit card accounts and generate a bill of more than $200,000.00 in charges.
Develop a form of defense
To stop identity thieves in their tracks, there are several things you can do. You can start by freezing access to your credit file. By doing so, you make your file inaccessible to anyone who does not know the secret PIN (Personal Information Number) of your choice. This sets the wheels in motion to protect you from the bad guys: anyone who tries to apply for credit in your name. Causes your application to be denied; although your credit cards will not be affected. And if you want to apply for new credit or allow a bank, store, or agency to run a background check on you, you can get a credit thaw. For example, if you decide to buy an expensive item, like a car, you can unfreeze your history for car dealers.
Other things you can do – Starting NOW!
• Regularly review your credit report for suspicious activity. Americans are now entitled to one free annual credit report from each of the three bureaus: Experian, Equifax, and TransUnion.
• If you choose to shop online, use a credit card instead of a debit card. With a credit card, you have the added protection of a maximum liability of $50.00 for unauthorized purchases.
• Learn more about phishing email scams and other schemes, frauds and scams to separate you from your identity and your money. To learn more about these scams and the resources available to you, visit http://www.ProtectingYourIdentity.blogspot.com/
In case you become a victim
Here are some steps to follow:
• Act quickly and prepare for an uphill battle. Credit card agencies and law enforcement are not cooperative or supportive. For guidance and support, I suggest you turn to organizations and agencies such as ITRC (www.identitytheftcenter.org), the Federal Trade Commission (www.FTC.gov), and others.
• Call the fraud department. from one of the three credit bureaus, Experian, Equifax, and TransUnion, and request that a fraud alert be placed on your credit reports. (The other two credit bureaus will be automatically notified.) however, a word of caution is in order here. There are no legal requirements to comply with alerts, and merchants who are eager to make a sale can ignore them.
• Close your credit card accounts and change the passwords for all your financial and bank accounts.
• File a police report. While credit bureaus won’t issue a fraud alert without it, be aware that local police departments may be reluctant to provide a report. Many may lack the resources to properly investigate the crime.
• Mail copies of the police report to all three credit bureaus with a cover letter demanding your complete credit file.
• Call all creditors where you know a fake account has been created and ask them to close their file immediately. Demand copies of all fraudulent requests for account and credit statements. Creditors do not want to divulge that information, but they will if you attach a copy of a police report and send your request in writing via certified mail.
Conclusion:
Face it, identity theft is a growing problem that affects everyone in one way or another. With the increase in popularity of Internet use, it has become easier for cybercriminals to steal our identity. In 2002 alone, the total number of victims of identity theft rose to 10 million, a new high. The cost to the economy increased a staggering 41 percent to $52.6 billion, according to the Identity Theft Survey Report, available from the Federal Trade Commission’s website (www.consumer.gov/idtheft/). Each year these totals rise with no apparent sign of slowing down.
What are your chances of becoming a victim of some type of identity theft? According to the Federal Trade Commission it is one in ten.
“Then what should I do?” you ask. My recommendation is that you first educate yourself with the information and resources at your disposal. Next, buy identity theft insurance. Find more information at http://www.ProtectingYourIdentity.blogspot.com