| Chances are you think that you won't be | | | | Never mind how stressful and embarrassing |
| affected by the nation's number one | | | | this mistake could be, it can also lead to an |
| fast-growing crime. Think again. Identity | | | | erroneous criminal record, outstanding arrest |
| theft is on the rise. | | | | warrants, and possible consequences such as |
| | | | being fired from your job for not disclosing |
| In 2005, 9.3 million Americans were victims | | | | a conviction and even get you thrown in jail. |
| of identity theft according to the Javelin | | | | What if this happens on a Friday night and |
| Better Business Bureau survey. 68.2 percent | | | | they toss you the local jail overnight? Do |
| of the cases involved thieves who obtained | | | | you have someone you can call that could bail |
| personal information off-line vs. only 11.6% | | | | you out? Can you afford this kind of mistake |
| obtained online. ID theft through lost or | | | | happen in your life? |
| stolen identification, misappropriation by | | | | |
| family and friends, and theft of paper mail | | | | The results of this kind of criminal identity |
| are among the most common ways thieves gain | | | | theft could include a negative impact on |
| access to your information. | | | | future employment, loss of security |
| | | | clearance, lost jobs and higher insurance |
| Most people do not have a clue how to protect | | | | premiums. It is the most difficult type of ID |
| themselves. | | | | theft to clear up and in some cases, almost |
| | | | impossible. Some victims have been reduced to |
| For a moment, let's just examine what could | | | | carrying court documentation with them at all |
| happen in your life if you are targeted for | | | | times to prove who they really are and not |
| this crime: | | | | the actual criminal. |
| | | | |
| · Victims now spend an average of 600 | | | | Social Security Identity Theft |
| hours recovering from identity theft over a | | | | |
| period of years. This equals nearly $16,000 | | | | If someone uses your social security number |
| in lost potential or realized income. Typical | | | | to get a job and they have a continuous work |
| out-of-pocket expenses are $1,500 on average. | | | | record, guess who gets to pay the tax bill? |
| | | | The answer is you. There are cases where |
| · Even after a thief is stopped from using | | | | someone's social security number was used a |
| your information, sometimes up to as much as | | | | total of 37 times by different people. In the |
| 10 years, victims still struggle with the | | | | employment screening business, we see this |
| impact of identity theft. That includes | | | | happen every day. |
| increased insurance or credit card fees, | | | | |
| inability to find a job, higher interest | | | | Medical Identity Theft |
| rates, as well as continuing to battle | | | | |
| collection agencies that refuse to clear | | | | This kind of ID theft involves someone using |
| records despite substantiating evidence of | | | | your health insurance for medical and/or |
| the crime. How stressful do you think this | | | | hospital care. The result is a mixed up |
| situation would be? | | | | medical record that could result in |
| | | | potentially deadly consequences. For example, |
| · The emotional impact on victims is | | | | what would happen if someone used your |
| likened to a violation similar to what | | | | identification and health insurance number |
| victims of violent crime describe including | | | | and got an HIV test that proved positive? Now |
| rape, violent assault and battering. People | | | | all of a sudden, that record is attached to |
| feel dirty, ashamed, embarrassed and often | | | | your medical records and every time you see a |
| are afraid to ask for help. Many have | | | | healthcare person, they think you have aids. |
| reported a split with a spouse of significant | | | | In addition, this can seriously impact your |
| other as well as being unsupported by family | | | | ability to get insurance and it can result in |
| members. | | | | significantly higher insurance premiums. |
| | | | |
| Most victims report a lack of responsiveness | | | | A recent article in the November 2006 issues |
| from those entities they turned to for help | | | | of Reader's Digest reported that "fraud is |
| including police, collection agencies, credit | | | | estimated to account for as much as ten |
| issuers, utility companies and financial | | | | percent of all health care costs ... |
| institutions. The average arrest rate for | | | | including medical identity theft." "An |
| identity theft based on reported cases is 5%. | | | | insurance card is like a Visa card with a $1 |
| The message here is crystal clear - we have | | | | million spending limit," says Byron Hollis, |
| to fight identity theft ourselves! | | | | national anti-fraud director of the Blue |
| | | | Cross and Blue Shield Association. The most |
| Exactly what are the different types of | | | | frightening part of this article is the fact |
| identity theft and how do identity thieves | | | | that organized crime rings are realizing how |
| get access to your personal information? | | | | lucrative identity theft is and are adding a |
| | | | new dimension to the problem. |
| Financial Identity Theft | | | | |
| | | | Driver's License Identity Theft |
| This is the kind of identity theft most | | | | |
| people think of first. Thieves hack into your | | | | Our driver's license is the standard and most |
| computer at home or at the office and steal | | | | often used form of identification in United |
| personal information. It accounts for about | | | | States. ID thieves are professionals at |
| 28% of all identity theft happening today. | | | | creating fake driver's licenses that are |
| | | | virtually impossible to detect. Having this |
| For example, thieves will: | | | | form of picture ID opens the door to numerous |
| | | | other types of ID theft. |
| · use your line of credit to make | | | | |
| purchases | | | | On October 28, 2006 in California, a worker |
| | | | at the Santa Ana DMV was arrested for her |
| · use your credit cards to make purchase | | | | alleged role in an ID theft scheme that used |
| | | | applicant information to create fraudulent |
| · open up a mortgage using your name and | | | | licenses. The indictment alleged that she |
| social security number | | | | used her position to sell fraudulent drivers |
| | | | licenses to co-schemers who paid between |
| · create a loan using your name and social | | | | $1,500 to $5,000 for each fraudulent license. |
| security number | | | | She allegedly obtained the identifications of |
| | | | victims from the DMV database and changed |
| · file bankruptcy under your name | | | | their address and identifiers to match the |
| | | | fraudulent purchaser who then had a new DMV |
| · open phone or utility accounts under | | | | photo taken. |
| your name | | | | |
| | | | What can You do to Protect Yourself? |
| · attempt checking and/or savings fraud | | | | |
| (accessing your accounts) | | | | The good news is there are many things you |
| | | | can do to protect yourself, but you must be |
| · attempt to use existing accounts to make | | | | proactive. This is a crime you cannot afford |
| purchases | | | | to wait to become of a victim of. |
| | | | |
| Under the Fair Credit Billing Act, your | | | | 1. Order the Federal Trade Commission's free |
| liability in the case of unauthorized credit | | | | report on identity theft by visiting or |
| use is limited to $50 per card. However, in | | | | calling 877 382-4357 |
| order to take advantage of this protection, | | | | |
| you must file a dispute letter within 60 days | | | | 2. Get a copy of your own credit report and |
| after the first bill containing the error was | | | | review it carefully for accuracy. Because of |
| mailed to you. So what happens if the thief | | | | the new Fair and Accurate Credit Transactions |
| changes your address and you don't receive | | | | Act (FACTA) you can get a free copy once a |
| your bill? Guess what, you are held | | | | year at |
| financially liable. In addition, the | | | | |
| Electronic Fund Transfer Act has the same 60 | | | | 3. Be careful with your mail. Don't use an |
| day notification provision or your liability | | | | unsecured mailbox when mailing anything |
| is unlimited. Not fair, but it's the reality. | | | | containing financial information. Drop off at |
| | | | the post office or in a post office |
| Some credit card companies promote zero | | | | collection box. |
| liability for these kinds of fraudulent | | | | |
| transactions. However the reality is that | | | | 4. Guard your trash. Identity thieves will |
| there are exclusions including cards used by | | | | look for credit card receipts and |
| business purposes, ATM transactions, and | | | | applications, insurance forms, bank |
| certain PIN-based transitions, all | | | | statements etc. Buy a shredder and use it |
| transactions processed outside the card | | | | regularly. |
| issuer's network, and cases where the card | | | | |
| holder gave permission for someone else to | | | | 5. Use your Social Security Number only when |
| use their card. You have to read your | | | | absolutely necessary. Before you give your |
| cardholder agreement carefully to find out | | | | SS# to anyone, ask why it is needed and how |
| the exact details. | | | | it will be used, or shared with others and |
| | | | how the company protects your personal |
| Financial Identity Theft has significant | | | | information. |
| impact on a person's life including: | | | | |
| financial losses, inaccurate credit reports | | | | 6. Pay attention to billing cycles. If your |
| that can mean being denied a job, difficulty | | | | bills don't arrive on time, follow up with |
| getting new lines of credit, trouble opening | | | | your creditors. A missing statement can mean |
| new accounts as well as higher costs for | | | | an ID thief has taken over your account and |
| loans and insurance. The toll of this kind of | | | | changed your billing address. |
| financial loss can be significant as can be | | | | |
| witnessed in a recent lawsuit filed by a | | | | 7. Be cautious with online purchases. Before |
| plaintiff against Home Depot, Case #02CC13327 | | | | purchasing anything on the internet, look for |
| in Orange County Superior Court, where a | | | | the icon of a lock in the lower right-hand |
| judge awarded the plaintiff $1 million in | | | | corner of your browser windows. If it's |
| damages for identity theft. | | | | there, you're dealing with a secure site. It |
| | | | not, you'll be safer finding another |
| Criminal Identity Theft | | | | merchant. |
| | | | |
| This is the second most common type of | | | | 8. Remove personal information from old |
| identity theft and most people aren't even | | | | computers. Files you think you have deleted |
| aware of it. | | | | from your computer may remain on your hard |
| | | | drive where hackers can easily access them. |
| In this case, a criminal uses your | | | | Use a wipe utility program to delete files |
| information during encounters with the | | | | with sensitive data. |
| police. For example, a thief who has your | | | | |
| identifying information gets arrested for a | | | | 9. Opt-out of receiving pre-approved credit |
| crime and gives them your name and social | | | | cards offers in the mail by calling 888 |
| security number. One day you are driving | | | | 5-OPT-OUT or going to |
| along and get stopped for a traffic | | | | |
| infraction. The cop runs your name through | | | | 10. Immediately sign up for an ID Theft |
| their database and finds out you just | | | | Shield program which can not only monitor |
| committed a bank robbery in another state. | | | | your credit and let you know when anything |
| Suddenly you are being hauled off to jail for | | | | changes, but can also provide restoration |
| something you didn't even do! | | | | after the fact. |
| | | | |