ID Theft: When Bad Things Happen To Your Good Name - Page 1

TABLE OF CONTENTS

Introduction

How Identity Theft Occurs

Minimize Your Risk

What You Can Do Today
Maintaining Vigilance
The Doors and Windows are Locked, but...

Choosing to Share Personal Information  - or Not

Credit Bureaus

Departments of Motor Vehicles

Direct Marketers

If You're a Victim

Your First Three Steps

Credit Accounts
ATM Cards
Checks

Chart Your Course of Action

Resolving Credit Problems

Credit Reports

Credit Cards

Debt Collectors

ATM Cards, Debit Cards and Electronic Fund Transfers

Specific Problems

Bank Fraud
Bankruptcy Fraud
Criminal Violations
Fake Driver's License
Investment Fraud
Mail Theft
Passport Fraud
Phone Fraud
Social Security Number Theft and Misuse
Tax Fraud
 

It's the Law

Bank Fraud
Bankruptcy Fraud
Criminal Violations
Fake Driver's License
Investment Fraud
Mail Theft
Passport Fraud
Phone Fraud
Social Security Number Theft and Misuse
Tax Fraud
 

Appendix

Instructions for Completing the ID Theft Affidavit 24

ID Theft Affidavit 26

 

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INTRODUCTION

In the course of a busy day, you may write a check at the grocery store, charge tickets to a ball game, rent a car, mail your tax returns, call home on your cell phone, order new checks or apply for a credit card. Chances are you don’t give these everyday transactions a second thought. But someone else may.

The 1990’s spawned a new variety of crooks called identity thieves. Their stock in trade is your everyday transaction. Each transaction requires you to share personal information: your bank and credit card account numbers; your income; your Social Security number (SSN); or your name, address and phone numbers. An identity thief co-opts some piece of your personal information and appropriates it without your knowledge to commit fraud or theft. An all-too-common example is when an identity thief uses your personal information to open a credit card account in your name.

Identity theft is a serious crime. People whose identities have been stolen can spend months or years – and thousands of dollars – cleaning up the mess the thieves have made of their good name and credit record. In the meantime, victims may lose job opportunities, be refused loans for education, housing, cars, or even be arrested for crimes they didn’t commit. Humiliation, anger and frustration are common feelings victims experience as they navigate the arduous process of reclaiming their identity.

Perhaps you’ve received your first call from a collections agent demanding payment on a loan you never took out – for a car you never bought. Maybe you’ve already spent a significant amount of time and money calling financial institutions, canceling accounts, struggling to regain your good name and credit. Or maybe your wallet’s been stolen, or you’ve just heard about identity theft for the first time on the nightly news, and you’d like to know more about protecting yourself from this devastating crime. This booklet is for you.

The Federal Trade Commission (FTC), working with other government agencies and organizations, has produced this booklet to help you guard against and recover from identity theft. Can you completely prevent identity theft from occurring? Probably not, especially if someone is determined to commit the crime. But you can minimize your risk by managing your personal information wisely and cautiously.

If you’ve been a victim of identity theft, call the FTC’s Identity Theft Hotline toll-free at 1-877-IDTHEFT (438-4338). Counselors will take your complaint and advise you on how to deal with the credit-related problems that could result. In addition, the FTC, in conjunction with banks, credit grantors and consumer advocates, has developed the ID Theft Affidavit to help victims of ID theft restore their good names. The ID Theft Affidavit, a form that can be used to report information to many organizations, simplifies the process of disputing charges with companies where a new account was opened in your name. For a copy of the ID Theft Affidavit, see page 29 or visit the ID Theft Website at www.consumer.gov/idtheft.

The Hotline and Website give you one place to report the theft to the federal government and receive helpful information. The FTC puts your information into a secure consumer fraud database where it can be used to help other law enforcement agencies and private entities in their investigations and victim assistance.
 

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HOW IDENTITY THEFT OCCURS

My wallet was stolen in December 1998. There’s been no end to the problems I’ve faced since then. The thieves used my identity to write checks, use a debit card, open a bank account with a line of credit, open credit accounts with several stores, obtain cell phones and run up huge bills, print fraudulent checks on a personal computer bearing my name, and more. I’ve spent the last two years trying to repair my credit report (a very frustrating process) and have suffered the ill effects of having a marred credit history. I’ve recently been denied a student loan because of inaccurate
information on my credit report.

From a consumer complaint to the FTC, February 22, 2001

Despite your best efforts to manage the flow of your personal information or to keep it to yourself, skilled identity thieves may use a variety of methods - low- and hi-tech - to gain access to your data. Here are some of the ways imposters can get your personal information and take over your identity.

MINIMIZE YOUR RISK

I’m tired of the hours I’ve spent on the phone and all the faxing I’ve had to do. When will it be over?

From a consumer complaint to the FTC, March 13, 2001

Tomorrow is Sunday so we won’t get any notices, but I’m not looking forward to Monday’s mail.

From a consumer complaint to the FTC, November 13, 2001

While you probably can't prevent identity theft entirely, you can minimize your risk. By managing your personal information wisely, cautiously and with an awareness of the issue, you can help guard against identity theft.

What You Can Do Today

• Order a copy of your credit report from each of the three major credit reporting agencies every year. Make sure it is accurate and includes only those activities you've authorized. The law allows credit bureaus to charge you up to $9.00 for a copy of your credit report.

Credit Bureaus

Equifax — www.equifax.com
To order your report, call: 1-800-685-1111
or write: P.O. Box 740241, Atlanta, GA 30374-0241
To report fraud, call: 1-800-525-6285
and write: P.O. Box 740241, Atlanta, GA 30374-0241

Experian — www.experian.com
To order your report, call: 1-888-EXPERIAN (397-3742)
or write: P.O. Box 2104, Allen TX 75013
To report fraud, call: 1-888-EXPERIAN (397-3742)
and write: P.O. Box 9532, Allen TX 75013

Trans Union — www.transunion.com
To order your report, call: 800-916-8800
or write: P.O. Box 1000, Chester, PA 19022.
To report fraud, call: 1-800-680-7289
and write: Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92834-6790

• Place passwords on your credit card, bank and phone accounts. Avoid using easily available information like 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. When opening new accounts, you may find that many businesses still have a line on their applications for your mother’s maiden name. Use a password instead.
   

• Secure personal information in your home, especially if you have roommates, employ outside help or are having service work done in your home.
   

• Ask about information security procedures in your workplace. Find out who has access to your personal information and verify that records are kept in a secure location. Ask about the disposal procedures for those records as well.

Maintaining Vigilance

• Order a copy of your credit report from each of the three major credit bureaus once a year. By checking your report on a regular basis you can catch mistakes and fraud before they wreak havoc on your personal finances. Don’t underestimate the importance of this step. One of the most common ways that consumers find out that they’re victims of identity theft is when they try to make a major purchase, like a house or a car. The deal can be lost or delayed while the credit report mess is straightened out. Knowing what’s in your credit report allows you to fix problems before they jeopardize a major financial transaction.
   

• Don’t give out personal information on the phone, through the mail or over the Internet unless you’ve initiated the contact or are sure you know who you’re dealing with. Identity thieves may pose as representatives of banks, Internet service providers (ISPs) and even government agencies to get you to reveal your SSN, mother’s maiden name, account numbers and other identifying information. Before you share any personal information, confirm that you are dealing with a legitimate organization. You can check the organization’s website as many companies post scam alerts when their name is used improperly, or you can call customer service using the number listed on your account statement or in the telephone book.
   

• Guard your mail and trash from theft.

  • Deposit outgoing mail in post office collection boxes or at your local post office, rather than in an unsecured mailbox. Promptly remove mail from your mailbox. If you’re planning to be away from home and can’t pick up your mail, call the U.S. Postal Service at 1-800-275-8777 to request a vacation hold. The Postal Service will hold your mail at your local post office until you can pick it up or are home to receive it.

  • To thwart an identity thief who may pick through your trash or recycling bins to capture your personal information, tear or shred your charge receipts, copies of credit applications, insurance forms, physician statements, checks and bank statements, expired charge cards that you’re discarding, and credit offers you get in the mail.
     

• Before revealing any personally identifying information (for example, on an application), find out how it will be used and secured, and whether it will be shared with others. Ask if you have a choice about the use of your information. Can you choose to have it kept confidential?
   

• Don’t carry your SSN card; leave it in a secure place.
   

• Give your SSN only when absolutely necessary. Ask to use other types of identifiers when possible. If your state uses your SSN as your driver’s license number, ask to substitute another number.
   

• Carry only the identification information and the number of credit and debit cards that you’ll actually need.
   

• Pay attention to your billing cycles. Follow up with creditors if your bills don’t arrive on time. A missing credit card bill could mean an identity thief has taken over your account and changed your billing address to cover his tracks.
   

• Be wary of promotional scams. Identity thieves may use phony offers to get you to give them your personal information.
   

• Keep your purse or wallet in a safe place at work.

A Special Word About Social Security Numbers

Your employer and financial institution will likely need your SSN for wage and tax reporting purposes. Other businesses may ask you for your SSN to do a credit check, like when you apply for a loan, rent an apartment, or sign up for utilities. Sometimes, however, they simply want your SSN for general record keeping. You don’t have to give a business your SSN just because they ask for it. If someone asks for your SSN, ask the following questions:

• Why do you need my SSN?

• How will my SSN be used?

• What law requires me to give you my SSN?

• What will happen if I don’t give you my SSN?

Sometimes a business may not provide you with the service or benefit you’re seeking if you don’t provide your SSN. Getting answers to these questions will help you decide whether you want to share your SSN with the business. Remember – the decision is yours.

The Doors and Windows Are Locked, but . . .

You may be careful about locking your doors and windows, and keeping your personal papers in a secure place. But, depending on what you use your personal computer for, an identity thief may not need to set foot in your house to steal your personal information. SSNs, financial records, tax returns, birth dates, and bank account numbers may be stored in your computer – a goldmine to an identity thief. The following tips can help you keep your computer and your personal information safe.

• Update your virus protection software regularly, or when a new virus alert is announced. Computer viruses can have a variety of damaging effects, including introducing program code that causes your computer to send out files or other stored information. Be on the alert for security repairs and patches that you can download from your operating system’s website.
   
• Do not download files sent to you by strangers or click on hyperlinks from people you don’t know. Opening a file could expose your system to a computer virus or a program that could hijack your modem.
   
• Use a firewall program, especially if you use a high-speed Internet connection like cable, DSL or T-1, which leaves your computer connected to the Internet 24 hours a day. The firewall program will allow you to stop uninvited guests from accessing your computer. Without it, hackers can take over your computer and access your personal information stored on it or use it to commit other crimes.
   
• Use a secure browser – software that encrypts or scrambles information you send over the Internet – to guard the security of your online transactions. Be sure your browser has the most up-to-date encryption capabilities by using the latest version available from the manufacturer. You also can download some browsers for free over the Internet. When submitting information, look for the “lock” icon on the browser’s status bar to be sure your information is secure during transmission.
   
• Try not to store financial information on your laptop unless absolutely necessary. If you do, use a strong password – a combination of letters (upper and lowers case), numbers and symbols. Don’t use an automatic log-in feature which saves your user name and password so you don’t have to enter them each time you log-in or enter a site. And always log off when you’re finished. That way, if your laptop gets stolen, it’s harder for the thief to access your personal information.
   
• Before you dispose of a computer, delete personal information. Deleting files using the keyboard or mouse commands may not be enough because the files may stay on the computer’s hard drive, where they may be easily retrieved. Use a “wipe” utility program to overwrite the entire hard drive. It makes the files unrecoverable. For more information, see Clearing Information From Your Computer’s Hard Drive (www.hq.nasa.gov/office/oig/hq/harddrive.pdf) from the National Aeronautics and Space Administration (NASA).
   
• Look for website privacy policies. They answer questions about maintaining accuracy, access, security, and control of personal information collected by the site, as well as how information will be used, and whether it will be provided to third parties. If you don’t see a privacy policy, consider surfing elsewhere.

For more information, see Site-Seeing on the Internet: A Traveler’s Guide to Cyberspace from the FTC at www.ftc.gov.

CHOOSING TO SHARE YOUR PERSONAL INFORMATION  — OR NOT

In November 2000, I found out that someone used my information to obtain a cell phone. Since then, I’ve been living a nightmare. My credit report is a mess. It’s a full-time job to investigate and correct the information.

From a consumer complaint to the FTC, April 3, 2001

Our economy generates an enormous amount of data. Most users of that information are from honest businesses – getting and giving legitimate information. Despite the benefits of the information age, some consumers may want to limit the amount of personal information they share. And they can: More organizations are offering people choices about how their personal information is used. For example, many feature an “opt-out” choice that limits the information shared with others or used for promotional purposes. When you “opt-out,” you may cut down on the number of unsolicited telemarketing calls, promotional mail and spam emails that you receive. Learn more about the options you have for protecting your personal information by contacting the following organizations.

Credit Bureaus

Pre-Screened Credit Offers

If you receive pre-screened credit card offers in the mail (namely, those based upon your credit data), but don’t tear them up after you decide you don’t want to accept the offer, identity thieves could retrieve the offers for their own use without your knowledge.

To opt out of receiving pre-screened credit card offers, call: 1-888-5-OPTOUT (1-888-567- 8688). The three major credit bureaus use the same toll-free number to let consumers choose to not receive pre-screened credit offers.

Marketing Lists

In addition, you can notify the three major credit bureaus that you do not want personal information about you shared for promotional purposes. To ask the three major credit bureaus not to share your personal information, write to:

Equifax, Inc.
Options
PO Box 740123
Atlanta, GA 30374-0123

Experian
Consumer Opt-Out
701 Experian Parkway
Allen, TX 75013

TransUnion
Marketing List Opt Out
PO Box 97328
Jackson, MS 39288-7328

Department of Motor Vehicles

The Drivers Privacy Protection Act forbids states from distributing personal information to direct marketers. It does allow for the sharing of personal information with law enforcement officials, courts, government agencies, private investigators, insurance underwriters and similar businesses. Check with your state DMV to learn more, or visit www.ftc.gov/privacy/protect.htm#Motor.

Direct Marketers

The Direct Marketing Association’s (DMA) Mail and Telephone Preference Services allow you to opt out of receiving direct mail marketing and telemarketing calls from many national companies for five years.

When you register with these services, your name will be put on a “delete” file and made available to direct-mail and telephone marketers. However, your registration will not stop mailings or calls from organizations not registered with the DMA’s Mail and Telephone Preference Services.

For Direct Mail Marketing

Direct Marketing Association
Mail Preference Service
PO Box 643
Carmel, NY 10512

Or go online at www.the-dma.org/consumers/offmailinglist.html.

For Telemarketing

Direct Marketing Association
Telephone Preference Service
PO Box 1559
Carmel, NY 10512

Or go online at www.the-dma.org/consumers/offtelephonelist.html.

You also may register with a state “do not call” list: Many states offer “do not call” lists for residents of that state. Rules for how to put your name and number on the list and which telemarketers are covered vary. More information on state “do not call” lists is available at www.ftc.gov/donotcall.

For E-mail

The DMA also has an EMail Preference Service to help you reduce unsolicited commercial emails. To “opt-out” of receiving unsolicited commercial email, use DMA’s online form at www.dmaconsumers.org/offemaillist.html. Your online request will be effective for one year.