Identity Theft: Protect Yourself

You know the importance of having good credit when purchasing a home. When your identity is stolen, your credit and your ability to buy a home at the best rate are also at risk. The following information will help you protect yourself from this growing crime.

Within the last twelve months, 9.3 million Americans were victims of identity theft. Every 79 seconds, a thief steals someone's identity, opens accounts in the victim's name and goes on a shopping spree. The Federal Trade Commission (FTC) reports that most thieves still obtain personal information through traditional rather than electronic channels. In the cases where the method was known, 68.2% of information was obtained off-line versus only 11.6% obtained online. Conventional methods such as through lost or stolen wallets, misappropriation by family and friends, and theft of paper mail are among the most common ways thieves gain access to information.

The most common form of reported identity theft is credit card fraud (28%), followed by phone or utilities fraud (19%) and employment fraud (13%). The percentage of identity theft complaints relating to Electronic Funds Transfer more than doubled between 2002 and 2004.

The major metropolitan areas with the highest per capita rates of reported identity theft are:

• Phoenix-Mesa-Scottsdale, AZ
• Riverside-San Bernardino-Ontario, CA
• Las Vegas-Paradise, NV

Clearly, identity theft and fraud are problems, but what can be done about it, and what protections are in place for consumers?

Understanding identity theft
Each year, identity thieves find new and innovative ways to steal one of your most prized possessions, your name. It's important to stay one step ahead of the crooks by understanding what constitutes identity theft.

Identity theft is the false use of someone else's name, address, bank or credit card number or other personal information to commit fraud. There are multiple ways that a thief can steal your identity, some of which may not be as obvious as stealing your bank statement.

Recovering from identity theft can take consumers a long time. According to the FTC, Americans reported that they spent approximately 600 million hours resolving problems associated with identity theft in the past year.

How it happens
From stealing wallets and purses, to completing change of address forms, to rummaging through your trash, thieves try their best to obtain personal information.

• "Phishing" scams are on the rise in recent days. "Phishing" occurs when a customer receives an e-mail that appears to be from a legitimate source asking a customer to enter personal information such as an account or PIN number and/or password. Once the information is entered, criminals trace the keystrokes, therefore compromising a person's confidential information.
• Crooks can dumpster dive and fish around through the garbage at homes or businesses in the hopes of landing someone's information.
• What about your personal information that is housed at your workplace? It's something that the average person may not even consider a threat, but it does occur. Infiltration occurs when information from the workplace is stolen. Organized groups, also called identity theft rings, try to recruit existing employees to get a job at a company for the sole purpose of obtaining identities.

Now that you know the criminal, protect yourself
Although there's no guarantee that identity theft won't happen, steps can be taken to make it harder for identity thieves to gain access to your personal information. Prevention tips are simple, straightforward and logical, but easily overlooked.

• Secure all personal information such as credit cards, social security cards, bank statements, etc.
• Never carry your social security card with you, and don't forget to shred all documents with important personal information after you've reviewed them.
• Review your credit bureau annually to make sure it's accurate and no new accounts have been opened in your name.
• Do not give out personal information over the phone unless you are sure you know who you are speaking to, and beware of promotional scams that may ask for this information over the phone.

If it does happen to you

Unfortunately, even the most vigilant of consumers can fall prey to identity thieves. Follow the steps outlined below, and you can be assured that you're name will be in tiptop shape.

1. If your financial account information, such as credit card or bank account information, is stolen:
   • Close those accounts immediately.
   • When you open new ones, place passwords on these accounts. Avoid using 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.
2. If your Social Security number is stolen: Report the theft to one of the three major credit-reporting agencies. When you talk with the credit-reporting agency, ask them to place a fraud alert and a victim's statement in your file. Call the toll-free fraud number of any one of the three major credit bureaus and place an initial fraud alert on your credit reports. This can help prevent an identity thief from opening new credit accounts in your name.
   • Equifax: 1-800-525-6285 - www.equifax.com
   • Experian: 1-888-397-3742 - www.experian.com
   • Trans Union: 1-800-888-4213 - www.transunion.com

To replace your Social Security card: Call the Social Security Administration at 1-800-772-1213 to get a replacement.

3. Notify your bank or banks and ask them to flag your account(s) regarding any unusual activity.
4. Notify the issuer of each credit card you carry.
5. Check your accounts online.
6. If your driver's license or other identification documents are stolen: Contact the issuing agency and follow their procedures to place fraud flags and to get replacements. Once you have taken these precautions, there really isn't anything more you need to do except to check for the signs that your information is being misused (failing to receive bills, receiving credit cards/mail you ordinarily would not, being denied credit, etc.) You don't have to file an identity theft report with the police or with the FTC until you find out if your information is actually being misused. If another crime was committed, such as theft of your purse or wallet or your house or car was broken into, report that crime to the police.

Organizations are protecting you, too

Organizations, such as financial institutions, also have a responsibility to protect consumers identities.

Joint initiatives between financial institutions, credit card issuers and other law enforcement and regulatory agencies have achieved success over the past few years, and the key is education across all lines.