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Identity Theft - Are You At Risk?

Chances are you think that you won't becan also lead to an erroneous criminal
affected by the nation's number onerecord, outstanding arrest warrants, and
fast-growing crime. Think again.possible consequences such as being
Identity theft is on the rise.fired from your job for not disclosing a
In 2005, 9.3 million Americans wereconviction and even get you thrown in
victims of identity theft according tojail. What if this happens on a Friday
the Javelin Better Business Bureaunight and they toss you the local jail
survey. 68.2 percent of the casesovernight? Do you have someone you can
involved thieves who obtained personalcall that could bail you out? Can you
information off-line vs. only 11.6%afford this kind of mistake happen in
obtained online. ID theft through lostyour life?
or stolen identification,The results of this kind of criminal
misappropriation by family and friends,identity theft could include a negative
and theft of paper mail are among theimpact on future employment, loss of
most common ways thieves gain access tosecurity clearance, lost jobs and higher
your information.insurance premiums. It is the most
Most people do not have a clue how todifficult type of ID theft to clear up
protect themselves.and in some cases, almost impossible.
For a moment, let's just examine whatSome victims have been reduced to
could happen in your life if you arecarrying court documentation with them
targeted for this crime:at all times to prove who they really
·Victims now spend an average of 600are and not the actual criminal.
hours recovering from identity theftSocial Security Identity Theft
over a period of years. This equalsIf someone uses your social security
nearly $16,000 in lost potential ornumber to get a job and they have a
realized income. Typical out-of-pocketcontinuous work record, guess who gets
expenses are $1,500 on average.to pay the tax bill? The answer is you.
·Even after a thief is stopped fromThere are cases where someone's social
using your information, sometimes up tosecurity number was used a total of 37
as much as 10 years, victims stilltimes by different people. In the
struggle with the impact of identityemployment screening business, we see
theft. That includes increased insurancethis happen every day.
or credit card fees, inability to find aMedical Identity Theft
job, higher interest rates, as well asThis kind of ID theft involves someone
continuing to battle collection agenciesusing your health insurance for medical
that refuse to clear records despiteand/or hospital care. The result is a
substantiating evidence of the crime.mixed up medical record that could
How stressful do you think thisresult in potentially deadly
situation would be?consequences. For example, what would
·The emotional impact on victims ishappen if someone used your
likened to a violation similar to whatidentification and health insurance
victims of violent crime describenumber and got an HIV test that proved
including rape, violent assault andpositive? Now all of a sudden, that
battering. People feel dirty, ashamed,record is attached to your medical
embarrassed and often are afraid to askrecords and every time you see a
for help. Many have reported a splithealthcare person, they think you have
with a spouse of significant other asaids. In addition, this can seriously
well as being unsupported by familyimpact your ability to get insurance and
members.it can result in significantly higher
Most victims report a lack ofinsurance premiums.
responsiveness from those entities theyA recent article in the November 2006
turned to for help including police,issues of Reader's Digest reported that
collection agencies, credit issuers,"fraud is estimated to account for as
utility companies and financialmuch as ten percent of all health care
institutions. The average arrest ratecosts ... including medical identity
for identity theft based on reportedtheft." "An insurance card is like a
cases is 5%. The message here is crystalVisa card with a $1 million spending
clear - we have to fight identity theftlimit," says Byron Hollis, national
ourselves!anti-fraud director of the Blue Cross
Exactly what are the different types ofand Blue Shield Association. The most
identity theft and how do identityfrightening part of this article is the
thieves get access to your personalfact that organized crime rings are
information?realizing how lucrative identity theft
Financial Identity Theftis and are adding a new dimension to the
This is the kind of identity theft mostproblem.
people think of first. Thieves hack intoDriver's License Identity Theft
your computer at home or at the officeOur driver's license is the standard and
and steal personal information. Itmost often used form of identification
accounts for about 28% of all identityin United States. ID thieves are
theft happening today.professionals at creating fake driver's
For example, thieves will:licenses that are virtually impossible
·use your line of credit to maketo detect. Having this form of picture
purchasesID opens the door to numerous other
·use your credit cards to make purchasetypes of ID theft.
·open up a mortgage using your name andOn October 28, 2006 in California, a
social security numberworker at the Santa Ana DMV was arrested
·create a loan using your name andfor her alleged role in an ID theft
social security numberscheme that used applicant information
·file bankruptcy under your nameto create fraudulent licenses. The
·open phone or utility accounts underindictment alleged that she used her
your nameposition to sell fraudulent drivers
·attempt checking and/or savings fraudlicenses to co-schemers who paid between
(accessing your accounts)$1,500 to $5,000 for each fraudulent
·attempt to use existing accounts tolicense. She allegedly obtained the
make purchasesidentifications of victims from the DMV
Under the Fair Credit Billing Act, yourdatabase and changed their address and
liability in the case of unauthorizedidentifiers to match the fraudulent
credit use is limited to $50 per card.purchaser who then had a new DMV photo
However, in order to take advantage oftaken.
this protection, you must file a disputeWhat can You do to Protect Yourself?
letter within 60 days after the firstThe good news is there are many things
bill containing the error was mailed toyou can do to protect yourself, but you
you. So what happens if the thiefmust be proactive. This is a crime you
changes your address and you don'tcannot afford to wait to become of a
receive your bill? Guess what, you arevictim of.
held financially liable. In addition,1.Order the Federal Trade Commission's
the Electronic Fund Transfer Act has thefree report on identity theft by
same 60 day notification provision orvisiting or calling 877 382-4357
your liability is unlimited. Not fair,2.Get a copy of your own credit report
but it's the reality.and review it carefully for accuracy.
Some credit card companies promote zeroBecause of the new Fair and Accurate
liability for these kinds of fraudulentCredit Transactions Act (FACTA) you can
transactions. However the reality isget a free copy once a year at
that there are exclusions including3.Be careful with your mail. Don't use
cards used by business purposes, ATMan unsecured mailbox when mailing
transactions, and certain PIN-basedanything containing financial
transitions, all transactions processedinformation. Drop off at the post office
outside the card issuer's network, andor in a post office collection box.
cases where the card holder gave4.Guard your trash. Identity thieves
permission for someone else to use theirwill look for credit card receipts and
card. You have to read your cardholderapplications, insurance forms, bank
agreement carefully to find out thestatements etc. Buy a shredder and use
exact details.it regularly.
Financial Identity Theft has significant5.Use your Social Security Number only
impact on a person's life including:when absolutely necessary. Before you
financial losses, inaccurate creditgive your SS# to anyone, ask why it is
reports that can mean being denied aneeded and how it will be used, or
job, difficulty getting new lines ofshared with others and how the company
credit, trouble opening new accounts asprotects your personal information.
well as higher costs for loans and6. Pay attention to billing cycles. If
insurance. The toll of this kind ofyour bills don't arrive on time, follow
financial loss can be significant as canup with your creditors. A missing
be witnessed in a recent lawsuit filedstatement can mean an ID thief has taken
by a plaintiff against Home Depot, Caseover your account and changed your
#02CC13327 in Orange County Superiorbilling address.
Court, where a judge awarded the7.Be cautious with online purchases.
plaintiff $1 million in damages forBefore purchasing anything on the
identity theft.internet, look for the icon of a lock in
Criminal Identity Theftthe lower right-hand corner of your
This is the second most common type ofbrowser windows. If it's there, you're
identity theft and most people aren'tdealing with a secure site. It not,
even aware of it.you'll be safer finding another
In this case, a criminal uses yourmerchant.
information during encounters with the8.Remove personal information from old
police. For example, a thief who hascomputers. Files you think you have
your identifying information getsdeleted from your computer may remain on
arrested for a crime and gives them youryour hard drive where hackers can easily
name and social security number. One dayaccess them. Use a wipe utility program
you are driving along and get stoppedto delete files with sensitive data.
for a traffic infraction. The cop runs9.Opt-out of receiving pre-approved
your name through their database andcredit cards offers in the mail by
finds out you just committed a bankcalling 888 5-OPT-OUT or going to ttp://
robbery in another state. Suddenly you10.Immediately sign up for an ID Theft
are being hauled off to jail forShield program which can not only
something you didn't even do!monitor your credit and let you know
Never mind how stressful andwhen anything changes, but can also
embarrassing this mistake could be, itprovide restoration after the fact.



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