All About Identity Theft Albany NY

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In this article, I explain who identity theft affects, how it happens, and what personal information it involves. Although the fact of identity theft is pretty unnerving, a greater understanding of identity theft can be empowering. After you find out what identity theft is all about and how it occurs, you can protect your personal information from falling into the wrong hands — and you’ll know the best way to take action if it does.

The Fastest Growing Crime
Identity theft happens when someone (the identity thief) uses another person’s personal information (such as name, Social Security number, and date of birth) to fraudulently obtain credit cards or loans, open a checking account, or otherwise gain access to money or goods in the other person’s name. Identity theft takes two primary forms: financial and criminal. Financial identity theft includes activities such as credit card fraud, tax and mail fraud, passing bad checks, and so on. Of course, the identity thief’s objective is to not pay back any of the borrowed money but, instead, to enjoy spending it. Criminal identity theft expands on the crime by using financial identity theft to support criminal activities up to and including terrorism. In 1998, the U.S. Congress recognized the growth of identity theft and passed the Identity Theft and Assumption Deterrence Act, making identity theft a crime. In September 2003, the Federal Trade Commission (FTC) released the results of an impact survey that outlined the scope of the crime. The survey statistics show the following:

27.3 million Americans have been the victims of identity theft in the last five years.

The total cost of this crime to financial institutions in the United States is $33 billion, and the direct cost to consumers is $5 billion.

Identity theft is the fastest growing crime in the U.S. today. The crime of identity theft was noted by the FTC as the fastest growing crime in a survey conducted by the agency and published in a report on September 3, 2003.

In 2003, the incidence of identity theft was up to 42 percent of all the complaints that consumers filed to the FTC.

According to CBSnews.com, “Every 79 seconds, a thief steals someone’s identity, opens accounts in the victim’s name, and goes on a buying spree.” Some other interesting stats from the FTC study that people find surprising are:

In more than 25 percent of all cases, the victim knows the thief.

In 35 percent of those cases, the thief is a family member or relative.

Almost 50 percent of victims don’t know how their information was stolen.

The average out-of-pocket expense to individuals is $500. So who exactly are the people who fall victim to identity thieves? Read the next sections to find out the who and how of identity theft.

Who it affects
In addition to the statistics noted earlier, the FTC survey findings show that identity theft can happen to anyone who has credit, bank accounts, a Social Security number (SSN), a date of birth (DOB), or other personal identification information. That is, almost every man, woman, or child is a potential target. Yes, even children are susceptible to identity theft because most children (over 16) have a SSN, and all children have a DOB. Identity thieves don’t care about age; they just want personal information they can use to obtain credit. The sad part is that you can be a victim and not know right away. For example, you may find out you’re a victim only when you go to buy a car and get turned down for credit because your credit report already shows three cars — and you’re not driving any of them. If you catch it early, however, you can minimize the amount of time and money necessary to clear your name. Anyone, even a celebrity, can become a victim of identity theft. Tiger Woods, Robert De Niro, and Oprah Winfrey have all been victims of identity theft. No one is immune, and straightening out the resulting mess can take years. But you can protect yourself by practicing identity theft prevention.

How Identity Theft Happens
Unfortunately, it can be fairly simple for identity thieves to obtain other people’s personal information and ply their trade. For example, suppose that you lose (or someone steals) your wallet. In your wallet are your driver’s license (with your name, address, and DOB), multiple credit cards (gas cards, department store cards, and at least one major credit card), ATM cards (if you’re forgetful, with associated PIN numbers written down), and medical benefits cards (with your Social Security number as the identifier). Some people even carry personal checkbooks and their actual Social Security cards in their wallets. Get the picture? All the information an identity thief needs is right there in one place. Identity thieves can also obtain your personal information through a midnight garbage safari activity known as dumpster diving. Yes, these thieves will literally go through the garbage cans in front of your house and scrounge information such as cancelled checks, bank statements, utility bill statements, credit card receipts, and those preapproved credit card offers you’ve been discarding. I discuss what thieves may be looking for in your garbage and what you can do to thwart them in “Knowing What Information Is Vulnerable” later in this chapter. You can also find more details in Chapter 2. Remember this advice: “If you don’t shred, it isn’t dead.” The non-shredded personal information you’ve tossed in the trash becomes fair game, and the identity thief thanks you for being so thoughtful. Although identity thieves have many ways — some rather high-tech and sophisticated — to obtain your personal information, wallets and garbage are the most common targets. The point is that after the thief has your personal information, he or she can assume your identity (at least financially) and start making purchases, getting cash or loans, and otherwise using your good credit.

Knowing What Information Is Vulnerable
We live in a numbers society: phone numbers, personal identification numbers (PIN), driver’s license numbers, credit card numbers, date of birth (DOB), Social Security numbers, bank account and 401K numbers . . . you get the idea. As the lyrics of the song “Secret Agent Man” tell us, “They have given you a number and taken away your name.” Also, employee and medical record numbers and other tidbits of information are used to identify us as persons today, and that fact gives meaning to the term personal identification information, because all these numbers are like keys to your identity on the phone, online, or in writing. The vulnerable personal information that identity thieves use is as follows:

Social Security number (SSN): This is, of course, the nine-digit personal identification number (compliments of the federal government) that everyone needs to get a job, pay taxes, and apply for credit. The SSN is like the key to the kingdom — your financial kingdom, that is. The identity thief uses your SSN to apply for credit, file false tax returns, get a job, open bank accounts, and so on.

Date of birth (DOB): A DOB is a piece of the personal information puzzle, but if an identity thief has this piece by itself, it’s not a problem. When the thief uses your DOB in conjunction with your SSN, he or she can become you.

Mother’s maiden name: This name is used to verify your identity when accessing financial information. Identity thieves use your mother’s maiden name to verify their identity as being yours in order to access your financial records and open new accounts in your name.

Personal identification numbers (PINs): Usually a five or more digit number used to access your bank accounts when using your ATM card.

Passwords: Your passwords are the keys to any information stored electronically. When the identity thief has your password, he or she has access to the information you are trying to protect and uses the passwords to access the information, such as bank accounts, online bill paying services, and so on.

Driver’s license number: The number used to identify you is printed on your license. When the identity thief has your driver’s license number, he or she can have a phony license made that shows your name and driver’s license number with the thief’s picture. By using your personal information, identity thieves can party hardy on your nickel and good credit reputation. They spend like there’s no tomorrow because they know that someone else (you) is picking up the tab. Identity thieves can use your personal information to open accounts, such as a cellular phone account, in your name. Of course, they don’t pay the bills and continue to use the phone until you discover the theft and the heat is on; then they drop that account and move on to another unsuspecting victim.

It comes in the mail
To steal your identity, the identity thief uses some of the information you receive in the mail. In Table 1-1, I outline the most vulnerable information that comes in the mail. The best way to minimize the amount of information you receive in the mail — especially those preapproved credit offers and the blank checks from the credit companies — is to opt-out. When you opt out, you remove yourself from mail marketing lists. You can request that your bank not send preapproved checks, as well.

What you throw away can hurt you
When identity thieves go through the garbage of potential targets, it is called dumpster diving. The only tools needed are a pair of gloves and a flashlight. (The favorite time to go on a garbage hunt is after dark, and the thief must be able to stand the smell — especially on a hot summer night.) The purpose of dumpster diving is to find personal information that you discard without tearing or shredding. What type of information, you may be asking? The following list gives you the answer:

Preapproved credit card applications: Throwing away those preapproved credit card applications without tearing, shredding or destroying them in some way is inviting trouble. An Identity thief can retrieve the application from your trash, send it in with the address changed, and receive the new cards in your name, based on your credit. After receiving your card, the thief charges items (or cash advances) to the card up to its maximum in short order. Then, he or she tosses the card and leaves you with the bill.

Credit card receipts: Although many businesses no longer print your entire credit card number on your receipts, some still do. Check your receipt — if it lists your credit card number, don’t leave it behind to fall into the wrong hands.

Financial statements: Bank and other financial statements containing your account numbers and (often) your SSN are treasures that may lurk in the garbage unharmed and waiting to be “liberated” by the identity thief. The bottom line is to remember to destroy all personal information before throwing it away. Tear, shred, or otherwise destroy those preapproved credit card applications, financial statements, credit card receipts, and so on. Don’t make your house a dumpster diving gold mine; what you throw away can come back to haunt you.

Your identity thief doesn’t have to be your twin
For those who remember the old Mission Impossible TV show, many episodes featured one of the IMF (Impossible Mission Force) personnel assuming the identity of an intended target or someone close to the target. In the show, the person assuming the target’s identity would wear a mask that resembled the target’s face and would learn to speak and act like the target. In real life, an impersonator (the identity thief) doesn’t need to look or act like you to steal your identity. All that’s needed is your personal identification information and bingo: He or she becomes you. TV commercials for a major bank’s credit card offer the best depiction of this real-life situation. In the commercials, you see the victims talking to you about how much fun they’ve had buying expensive vehicles, taking lavish vacations, or whatever.

What you notice, though, is that the voices you hear don’t match the people you see on the screen: a male voice emanates from a female, or vice versa. The voice — gloating over how wonderful it is to get the goods and stick someone else with the tab — is obviously coming from the identity thief while you’re looking at the victim. Type of Mail Vulnerable Information Bank statements Your name, address, bank name and contact information, account number, and type. For checking accounts: your cancelled checks, account number, and so on Pre-approved credit card Your name and address offers Pay check stubs from Your name and address; your employer’s direct deposit name, address, and pay rate; and sometimes your SSN 401K and other securities Your name, account number, balance, statements name of company holding account, contact information, and sometimes your SSN Personal check reorders Your name, account number, address, (blank) and bank name and address Blank checks from credit Your name, address, and account card companies number Annual Social Security Your name, address, SSN, DOB, and account statement account balance W-2s, 1099, tax returns, Your address, your SSN, and your and other tax information spouse’s and dependent’s SSN.

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For Dummies is a registered trademark of Wiley Publishing, Inc. in the United States and other countries. Used here by license.