How Does Identity Theft Occur?

Surprising to most people is that identity theft is actually a very easy crime to commit. In fact, over 1,400 people are victimized each day. That being the case, it is important for you to know how these thieves operate so you can protect your personal information.

At the heart of the crime is the thief obtaining information that most people would assume only the true owner of the information would know. Common examples are social security numbers, driver's license numbers, mother's maiden names, and passports.

Thieves obtain this information in numerous ways. Some thieves will steal wallets, purses, and even mail. Others will listen and/or watch a person conduct personal business, such as an automated teller machine. Thieves will also deceive or trick people into disclosing personal information through phone scams, via the mail, or on the Internet.

Very aggressive thieves will even obtain personal information by using a process referred to as "pretext calling." Pretext calling occurs when an individual contacts an entity in possession of a customer's personal information and cons the entity into releasing the information by acting as the customer or someone authorized to have the customer's information.

Once a thief has possession of the information, the thief will apply for credit cards, loans, phone services, or just about any other service where economic gain can be realized without actual payment. When applying for credit cards, loans, or other services, thieves will often intentionally use incorrect addresses or complete change of address forms on existing accounts so that the victim will not be immediately aware of the crime.

The following are just some of the ways you can reduce the risk of identity theft:

• Keep your credit cards, debit cards, personal identification numbers (PINs) and other passwords, checks, social security cards, other cards or documents which bear your social security number, health insurance cards, driver's license and number, and other personal information where they will be safe. When disposing of these items, do so by shredding.
• Keep your deposit and withdrawal slips, credit card purchase receipts, financial institution statements, credit card statements, utility bills, medical bills, insurance information, investment updates, and credit card solicitations where they will be safe. When disposing of them, do so by shredding.
• Don't put your trash out until shortly before it will be picked up.
• Mail bill payments and other items that contain personal information at a U.S. Postal Service drop box rather than in your curb side mailbox. Don't put any mail in your curb side mailbox until shortly before it will be picked up.
• Take your mail out of your curb side mailbox as soon as possible after it has been delivered. If you are traveling, have the U.S. Postal Service hold your mail or have someone you trust pick it up daily.
• Limit the information on your checks, and don't carry around any more cards than necessary.
• Don't give any of your personal information in person, over the telephone, or over the Internet to anyone unless you have a very good reason to trust them.
• Don't give any of your personal information in response to an unsolicited email claiming to be from your financial institution or some other highly credible source. This is a technique referred to as "phishing." (See more information below) Be sure to validate the request before providing the information (for example, contact the customer service telephone number on your account statement to ask about the request).
• Don't give any of your personal information to any web sites that do not use encryption or other secure methods to protect it.
• Use a firewall if you have a high-speed Internet connection. This software can be purchased online or from most software retailers.
• Don't use PINs or passwords that are easy to guess (for example, don't use birth dates, or spouse, child or pet names).
• Examine your credit card and financial institution statements immediately upon receipt to determine whether there were any unauthorized transactions. Report any that you find immediately to the financial institution.
• Make a prompt inquiry if bills or statements are not received in a timely fashion - this could mean that they are being diverted by an identity theft.
• Obtain copies of your credit report annually from each of the three major credit reporting agencies to be sure that they are accurate.

You may also wish to do the following:

• Request not to receive any further pre-approved offers of credit by calling 1-888-5-OPT-OUT.
• Ask to be removed from national direct mailing lists by writing to:

 DMA Mail Preference Service
P.O. Box 643
Carmel,  NY  10512

 Include your name and address.

•  Register with the National Do Not Call Registry by calling 1-888-382-1222 or going online at www.donotcall.gov. 

EQUIFAX
1-800-525-6285 
P.O. Box 740241
Atlanta,  GA  30374-0241 

 EXPERIAN
1-888-EXPERIAN (1-888-397-3742)
P.O. Box 9532
Allen,  TX  75013

 TRANSUNION
1-800-680-7289
Fraud Victim Assitance Division
P.O. Box 6790
Fullerton,  CA  92834-6790

2.  Close all accounts that are or may be affected by the identity theft. Also, regarding any checking accounts thus closed, contact the following major check verification companies and ask that retailers using their databases not accept checks drawn on the closed accounts:

• TeleCheck - 1-800-710-9898 or 1-800-927-0188
  
• Certegy, Inc. - 1-800-437-5120
  
• International Check Services - 1-800-631-9656

4.  Contact the Federal Trade Commission to report the theft and obtain further guidance as to how to protect yourself:

• Email:  www.consumer.gov/idtheft
  
• Call: 1-877-IDTHEFT (438-4338)
  
• Write: Identity Theft Clearinghouse
            Federal Trade Commission
        600 Pennsylvania Avenue,  NW
             Washington,  DC  20580

6. Keep detailed records of any theft of your identity and of your efforts to resolve the same.

• Log the date, time, and amount of any unauthorized activity on your accounts.
• Log the date, time, duration, and cost of any phone calls.
• Log the date and cost of any mailings and keep copies.

• If you get an e-mail that warns you­ with little or no notice-that an account of yours will be shut down or interest suspended unless you reconfirm your billing information, do not reply or click on the link in the e-mail. Instead, contact the legitimate company cited in the e-mail using a telephone number or web address you know to be genuine.
  
• Avoid e-mailing personal and/ or financial information.
  
• Look for the "lock" icon on the browser's status bar before submitting financial information through any web site. It signals that your information is secure during transmission.
  
• Review credit card and account statements as soon as you receive them to determine whether there are unauthorized charges. If your statement is late by more than a couple of days, call your credit card company immediately.
  
• Report suspicious activity to the FTC-­send the actual spam e-mail to uce@ftc.gov. If you believe you've been scammed, file your complaint at www.ftc.gov, then visit the FTC's identity theft web site at www.ftc.gov/idtheft to learn how to minimize your risk of damage from identity theft. To help fight fraud, the FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel (registered trademark) a secure, on-line database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad credit card company or financial institution to confirm your billing address and account balances.