Identity Theft: Protect Yourself
Written by: Katie Leboeuf, MA
CIGNA Behavioral Health
Growing up, Karen's parents often told her, "Protect yourself, be safe, there is only one of you and we would hate to lose you." Of course, she
rolled her eyes thinking with a sarcastic invincibility that all teenagers seem to possess, "Well I'd hate to lose myself too, thanks for
the 'advice'!"
Now years later, Karen looks back on those words and they carry a totally different meaning and weight. She wishes she hadn't been so glib and
quick to assume she could never be a victim. She did heed their advice at times, and feels she had been diligent, for the most part, with her
safety and life routines, but like everyone else, she was not invincible. No matter how secure she thought she had made herself, she was still
vulnerable, thus opening the door for her to become a victim of identity theft - a crime that has left her feeling powerless, used, and very
much alone. When it was all over, she had a sense that she really had lost herself.
The National Crime Prevention Council (2005) defines identity theft as a "criminal offense." "It occurs when a person 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
and Assumption Deterrence Act, 18 USC, 1028 (a)(7), 2005)."
According to the Consumer Sentinel, the Federal Trade Commission's (FTC) complaint database, the FTC received more than 635,000 complaints
about fraud and identity theft in 2004. A total of 388,603 (61%) of these complaints were fraud-related, and 246,570 (39%) were reports
of identity theft. This information represents a dramatic increase from the 516,740 total complaints lodged in the previous year. In 2004,
the most common type of identity theft took the form of credit card fraud, followed by phone or utilities fraud, bank fraud, and employment
fraud. That same year, consumers reported $547 million in losses from fraud (FTC, 2005).
How Identity Theft Occurs
Skilled identity thieves use a variety of ways to gain access to your personal information. For example, they may get information
from businesses or other institutions by stealing it while they're on the job; bribing an employee who has access to these
records; hacking these records, and conning information out of employees (FTC, 2005). Or, they may:
- steal your wallet or purse.
- steal your personal information through e-mail or the phone by saying they're from a legitimate company and claiming that you have
a problem with your account. This practice is known as "phishing" online, or "pretexting" by phone.
- steal your credit or debit numbers by capturing the information in a data storage device in a practice known as "skimming." They may
swipe your card for an actual purchase, or attach a device to an ATM machine where they may enter or swipe your card.
- get your credit reports by abusing the authorized access that was granted to their employer, or by posing as a landlord, employer,
or someone else who may have a legal right to your report.
- rummage through your trash, the trash of businesses, or public trash dumps in a practice known as "dumpster diving."
- steal personal information they find in your home.
- steal your mail, including bank and credit card statements, credit card offers, new checks, and tax information.
- complete a "change of address form" to divert your mail to another location.
Identity theft often occurs because someone has been casual with personal information. Leaving personal information unsecured in your home,
office, or sharing personal data on the Internet is an invitation to potential identity thieves; as is throwing out sensitive information
such as bank statements, tax forms, or credit card information.
If you can, invest in a good shredder. Whether or not you use a shredder, inspect your bills, receipts, and discarded documents for
any information that would make them useful to an identity thief. Look for personal data such as social security numbers, birth
date, bank and credit card identifiers, stock or financial account information, maiden names, employment information, driver's license
number, or old identification cards and credit cards. If you find something, don't just dispose of it; destroy it!
Once identity thieves have your personal information, they may use it to commit fraud or theft. The FTC (2005) offers the following examples of
what might occur should an identity thief get hold of your personal information. They may:
- call your credit card issuer to change the billing address on your account. The imposter then runs up charges on your account. Because
the bills are being sent to a different address, it may be some time before you realize there's a problem.
- open new credit card accounts in your name. When they use the credit cards and don't pay the bills, the delinquent accounts are
reported on your credit report.
- establish phone or wireless service in your name.
- open a bank account in your name and write bad checks on the account.
- counterfeit checks or credit or debit cards, or authorize electronic transfers in your name, and drain your bank account.
- file for bankruptcy under your name to avoid paying debts they've incurred under your name, or to avoid eviction.
- buy a car by taking out an auto loan in your name.
- get identification such as a driver's license issued with their picture, in your name.
- get a job or file fraudulent tax returns in your name.
- give your name to the police during an arrest. If they don't show up for the court date, a warrant for arrest is issued in your name!
How can you tell if you're a victim of identity theft?
If an identity thief is opening new credit accounts in your name, these accounts are likely to show up on your credit report. You can find out
by ordering a copy of your credit report from the three nationwide consumer-reporting companies. If you have lost any personal information - or
it has been stolen - you may want to check all your reports more frequently for the first year.
Monitor the balances of your financial accounts. Look for unexplained charges or withdrawals. Other indications of identity theft can be:
- Failing to receive bills or other mail. This could mean an identity thief has submitted a change of address.
- Receiving credit cards for which you did not apply.
- Denial of credit for no apparent reason.
- Receiving calls from debt collectors or companies about merchandise or services you didn't buy.
Identity theft victims: Immediate steps
If you are a victim of identity theft, take the following four steps as soon as possible and keep records of your conversations and copies of
all correspondence.
- Place a fraud alert on your credit reports, and review your credit reports. Fraud alerts can help you prevent an identity thief from
opening any more accounts in your name. Contact the toll-free fraud number of any of the three consumer reporting companies below to place
a fraud alert on your credit report. You need to only contact one of the three companies to place an alert. The company you call is
required to contact the other two, which will place an alert on their versions of your report too.
- Equifax: 1.800.525.6285; www.equifax.com; P.O. Box 740241, Atlanta, GA 30374-0241
- Experian: 1.888.397.3742; www.experian.com; P.O. Box 9532, Allen, TX 75013
- TransUnion: 1.800.680.7289; www.transunion.com; Fraud Victim Assistance Division, P.O. Box 6790 Fullerton, CA 92834-6790
- Close the accounts that you know or believe to have been tampered with or opened fraudulently. Call and speak to someone in the security
or fraud department of each company. Follow up in writing and include copies (NOT originals) of supporting documents. It's important to
notify credit card companies and banks in writing. Send your letters by certified mail, return receipt requested so you can document what the
company received and when. Keep a file of your correspondences and enclosures.
When you open new accounts, use new Personal Identification Numbers (PINs) and passwords. Avoid using easily available information like your
mother's maiden name, your birth date, the last four digits of your SSN or your phone number, or a series of consecutive numbers (e.g. 1234). Do
not use the same password for all your accounts - while it may be easier for you to remember, it also makes it easier for an identity thief
to access all of your personal and financial information. Don't cut corners or take shortcuts when protecting yourself!
If the identity thief has made charges or debits on your accounts, or on fraudulently opened accounts, ask the company for the forms to dispute
these transactions.
- File a report with your local police or the police in the community where the identity theft took place. Then, get a copy of the police report,
or at the very least, the number of the report. It can help with creditors who need proof of the crime.
- File a complaint with the Federal Trade Commission. By sharing your identity theft complaint with the FTC, you will provide important
information that can help law enforcement officials across the nations track down identity thieves and stop them.
You can file a complaint online at www.consumer.gov/idtheft. If you don't have internet access, call the FTC's Identity Theft Hotline, toll-free:
1.877.ID.THEFT (438.4338); TDD: 202.326.2502; or write: Identity Theft Clearinghouse, Federal Trade Commission, 600 Pennsylvania Avenue, NW,
Washington, DC 20580
Moving Forward
Karen's experience with identity theft left her feeling exposed, angry, and violated. Emotions such as these are normal reactions to the devastating
effects that can occur when someone has invaded your personal space - your identity. If it becomes difficult to cope with the aftermath of
identity theft - take control back and seek help! Counseling or professional guidance may be necessary, and definitely helpful on the road to
regaining the sense of self that was stolen. Contact your healthcare insurance company with questions or concerns, and to seek referrals.
Taking the steps outlined above should, in most cases, resolve your identity theft problems, but sadly identity theft or related credit problems
may reoccur. Stay alert! Daily diligence will keep you feeling safer and more aware. Again, don't handle this situation alone - make use of
the resources available and ask for professional help when things get overwhelming. You are not alone - by networking and reaching out, you might
prevent someone else from become an identity theft victim.
Any references in this material to other organizations or companies, including their Internet Websites, is not an endorsement or warranty of services,
information or products provided by those organizations or companies. Information in this document is not intended as legal advice or guidance. Only
a licensed attorney can provide legal advice. Please consult your legal counsel and human resources professionals for guidance. Additionally,
Information in this document is taken from the resources cited and developed for use by the general public. It is not intended as medical/clinical
advice or treatment. Only a healthcare provider can make a diagnosis or recommend a treatment plan. For more information about your behavioral
health benefits, you can call the member services or behavioral health telephone number listed on your healthcare identification card.
Resources:
Federal Trade Commission. (2005). ID theft: What it's all about. Retrieved July 14, 2005 from
http://www.ftc.gov/bcp/conline/pubs/credit/idtheftmini.htm
Federal Trade Comission. (2005). Identity crisis…What to do if your identity is stolen. Retrieved
July 13,2005 from http://www.ftc.govbcp/conline/pubs/alerts/idenalrt/thm
National Crime Prevention Council. (2005). Protect yourself against identity theft. Retrieved July
8, 2005 from http://www.ncpc.org
