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