Identity Theft Protection: How to Avoid Becoming a Statistic By Sharon Secor, Staff Writer Identity thieves are an inventive bunch,
coming up with new and different ways to hijack the personal information
of their victims every day. As soon as one scam is discovered and publicized,
alerting the public to its deceptive tactics, a new scheme is born to
replace it. These thieves can wreak havoc that can take years to straighten
out, stealing your savings or ruining your credit rating, making it crucial
for consumers to be ever vigilant about their personal and financial
information to avoid becoming yet another victim amongst the millions
Americans that are affected by identity theft every year. What
is Identity Theft? Identity
theft is a crime in which another person obtains and uses personal
information, such as your social security number, credit card numbers,
or banking account numbers, to assume your identity fraudulently. What
Can Be Done With Your Information? Most
often these bits of identifying information are used to start
credit accounts in the name of the victim, allowing the thief
to steal goods and services by charging on these fraudulent
cards. Often, thousands of dollars worth of debt are run
up in the victim’s name before the criminal activity is discovered. Other
identity thieves specialize in draining the cash from the
victim’s bank accounts, either by cloning the ATM card
of the victim, or with the use of fraudulent check drawn
on the account. Identity thieves can also start a new bank
account in your name, and bounce checks for purchases. Many
use stolen identities to commit much more complex financial
crimes, such as loan fraud, secure in the knowledge that
the financial information used in their schemes will
not lead authorities to their door. False
documents can be issued under your name, such as a
fraudulent driver’s license or government ID card.
Government benefits can be applied for in your name
with the help of these documents, leaving you open
to charges of welfare or social security fraud. If
the identity thief commits a crime, the fraudulent
identification can lead to the false arrest of the
victim, whose name and information is shown on its
face. Phone or utility accounts
can be opened in your name by an identity thief,
who will then run up exorbitant bills, or your identity
could be used to obtain medical treatment, leaving
the bills assigned to you. Common
Tactics Used To Steal Consumer Information There
is a wide range of methods used by unscrupulous
operators to get their hands on the information
they need to steal identities. There are a
few classic schemes that seem to rope in new
victims no matter how many times consumers
are publicly warned about them. Once they are
discovered, and the public warned, these thieves
simply vary the scam slightly and set up shop
again. Among the most
popular of these scams is the unsolicited
phone call, telling the consumer that they
have just won a tidy sum of money in a lottery
or contest. Then the scam artist will ask
for personal and financial data in order
to forward the prize. Some will even ask
for bank account numbers to electronically
withdraw a “processing fee” before the prize
can be awarded. This scam is also run on
consumers over the Internet or through the
mail. Calls claiming
to be from your financial institution can
be scam artists at work as well, especially
if they ask for your information over the
phone, such as account numbers or pin numbers.
Often these callers state that there has
been a problem with your account, and they
need your information to sort it out. This
tactic is often done by Internet phishing
also, with official looking emails sent
that claim to be from your bank. When you
click on a link to confirm your information,
it is collected for the thieves by
a fraudulent web site and your identity
is stolen. Another
phone scam that has become quite popular
with identity thieves is a call that
claims to be from the local authorities,
informing the recipient that they have
failed to report for jury duty and a
warrant has been issued for their arrest.
Once the victim has been panicked, the
caller will assure them that since they
made an honest mistake or were not properly
notified of their obligation, the whole
matter can be straightened out, just
confirm your social security number and
other personal information please. Of
course, there is always the traditional
direct theft method, like stealing
credit card or bank statements from
a victim’s mailbox, purse snatching,
or searching your trash for documents
or mail that holds personal information. Detecting
Identity Theft and Minimizing the
Damage The
average time that lapses before
a consumer realizes their identity
has been hijacked is 12 months,
giving experienced identity thieves
plenty of opportunity to rack
up huge debts before being discovered.
To avoid providing an identity
thief with such a wide window
of opportunity to lay waste to
your finances, it is essential
to be aware of the common signs
of possible identity theft and
be vigilant in watching for them. Monitor
your credit
report on a regular basis
to ensure that all the entries
reflect your own financial
activity. If you find any accounts
listed that you have not opened,
report the fraud immediately
to the creditors in question
and file a police report. Placing
a fraud alert on your credit
report is a very important
step, should you suspect identity
theft, and in some states you
can freeze access to your credit
file to help protect against
further fraud. Placing a complaint
with the Federal Trade Commission is
a good step to take as well. Pay
careful attention to credit
card statements as you receive
them, making sure that all
charges listed are your own.
If fraudulent charges are
found, report them immediately
and close out the account
to prevent continuing theft
from the account. If
you find, when writing
a check at a familiar retail
store, that your name has
been flagged for writing
bad checks, this can certainly
indicate identity theft.
Contact your bank quickly
to minimize the damage,
and your account should
be closed and a new one
issued. If
credit or loan applications
are denied, despite your
good credit rating, it
could indicate a problem
that you should investigate.
It is possible that accounts
opened fraudulently are
affecting your credit
score. Calls or letters
from collection agencies
that concern accounts
you are unfamiliar with
are another warning sign. Identity
theft is a crime that
one can never be completely
protected against in
today’s world, but
an alert consumer stands
a much better chance
of avoiding it, or
nipping it in the bud
should the worst happen.
As with most criminals,
identity thieves will
most often choose the
easiest victim. Simple
steps, like shredding
documents before disposing
of them and taking
care to monitor your
finances carefully
can help prevent this
crime from intruding
upon your life. Useful External Resources: | 