IDENTITY THEFT

Identity theft is the use of your information and personal identifiers such as:  Social Security numbers, credit card information, medical insurance information, banking information, professional affiliations, name, address, date of birth, birth place, and passwords without your permission to commit fraud or other crimes.  Identity theft is a significant national problem with anywhere from eight to fifteen million victims a year with a total losses estimated to be forty five to fifty five billion annually.  Identity thieves' victimization techniques are varied and run the gamant from simplistic to ornate and complex.  True identity theft is still a rare occurrence.  Most incidents that are classified as identity theft often start with a simple theft event.  Once the identity thief as your information, they focus on using the information in one or all of the following ways:

ACCOUNT CREATION - An offender establishes new accounts using the victim's name and personal identifying information.

ACCOUNT TAKEOVER - A person gains access to a victim's existing account and begins making fraudulent transactions.

 CRIMINAL IDENTITY TAKEOVER - A criminal assumes your identity when confronted by law enforcement .  They are also known to utilize a victim's name and personal identifying information in the court system.

WHAT DO THIEVES WANT??  

INFORMATION, INFORMATION, INFORMATION!  We live in a  convenience driven digital age where business profits and efficiency are based on the speedy acquistion and exchange of information.  The name of the game, whether legitimate or criminal in nature, is to collect as much information as possible on each and every one of us.  It is important that we all reassess our strategies and security safeguards when it comes to the protection and sharing of personal information.  Howevery, it is important to know that you can be pro-active and make all the right adjustments and still be the victim of identity theft and fraud.  Therefore, a two prong approach is always advised -- sound prevention and security protocols along with a vigilant monitoring routine. 

HOW THEY GET YOUR INFORMATION

 DUMPSTER DIVING (TRASH) - Identity thieves filter through personal and business refuse and discards for usable information.  We discard an amazing array of valuable and sensitive information.  Pre-approved credit card offers are often picked out of trash and redirected.

PHISHING - The use of a computer to contact victim's most often by sending e-mails that impersonate legitimate businesses, individuals, sweepstakes, credit companies, fraud warnings, government agencies, foreclosure/credit help , you name it, the sky is the limit.  This is all in an effort to scam vital personal information from you.

PRETEXTERS - Is an individual who attempts to acquire your personal information through misrepresentation and false pretenses.  Often a pretexter will pose as a representative of your bank, a business, internet service provider, police department, government agency, or any other entity that would garner the victim's trust when contacted.  Most often these individuals sell your information to criminal elements ("carders") that can use it for identity theft or other criminal proposes.

SIMPLE THEFT - Stealing wallet/purses, breaking into vehicles (a great deal of information is left in vehicles, particularly in the glove box), burglary, medical records, employment records, laptops or any other item that may have informational value.

SHOULDER SURFING - Staying in close proximity and visually or through listening obtain information from someone who is using their credit card, calling card, or other identifier often occurs at restaurants, grocery stores, ATM machines, and retail stores.

SKIMMING - Stealing your credit or debit card account numbers through the use of a data storage or collection device.  Skimmers often find work with legitimate businesses (restaurants, retail stores, and bars) and swipe or record information from the card when in their possession and out of eye site of the card owner.

MAIL THEFT - Disturbing trend where thieves target residential and business mail.  Thieves steal it out of the mailbox or through other means.  Particularly vulnerable are individuals who extend the red flag on their mailbox indicating to the letter carrier that there is mail to pick up is usually monthly bills.  These items can expose a great deal of sensitive information.

FRIENDS, ASSOCIATES, AND FAMILY -  According to the Federal Trade Commission - 2006 Identity Theft Survey Report indicated 16% of the Identity Thefts were committed by friends, associates, and family members.  Most victims do not know how they were victimized.

DATA BREACHES - An unauthorized loss, exposure, or disclosure of personal or business information by and institution entrusted and entitled to hold your information.  Security flaws or deficient procedures (laptop taken home and lost or stolen), offsite hackers, and internal theft issues are the most often used techniques to acquire the information.  Some well known breaches included:  DSW, Inc., CardSystem Solutions, Inc., TJW Companies, Inc., ChoicePoint Inc., MasterCard International, T-Mobile, Mercantile Potomac Bank, and The Gap.

WARNING SIGNS THAT YOU MAY BE A VICTIM

• Failure to receive bills, statements, or cyclically arriving financial information.
• Bill collectors start calling or writing referencing debt you did not accumulate.
• Unfamiliar bills, invoices, mortgage, or rental statements.
• Denial of credit or vendors who question your credit worthiness.
• Receive credit cards, checks, or any other financial instrument that you did not apply for.
• Unusual solicitations from vendors outside of your normal pattern.
• Residential long distance service provider changes.
• When stopped by an officer for routine or traffic related issues you are detained for warrants or offenses you know nothing about.
• Failure to receive tax refunds or you receive an audit or tax bill that is unfamiliar to you.
• Social Security Administration sends annual statements or payout information with your number on it .  However, the information is not yours or is not correct in some way.

PREVENTION - Sound pro-active prevention strategies start with an honest assessment of your personal situation and the removal or reduction of potential vulnerabilities and opportunities that you may be projecting to the thief.  Understanding what they are looking for and the techniques they employ to achieve their scam will give you the information you need to remove or reduce weaknesses in your security plan and allow you to enhance and fortify your strengths.

FRAUD ALERTS  - A fraud alert is an attachment to your credit bureau accounts that stipulates that anyone attempting to open new accounts in your name is obligated to make a good faith effort to contact you to see if it is your desire to open the account.  There is no requirement that the vendor has to make direct contact with you.  A fraud alert does not affect existing accounts in any way.  A fraud alert should be one element of a multi-layered prevention strategy however it is not in and of itself a total protection against identity theft.  Fraud alerts are recommended for anyone that is pro-active about prevention or suspects they may be a victim or about to become a victim of identity theft.  You can activate a fraud alert by contacting the credit bureaus, if you contact one they are supposed to notify the other two, however I would contact all three individually to be safe.  Fraud alerts are active for ninety days and then must be re-activated.  If you are the victim of identity theft you can apply for a seven year victim statement that keeps the alert active for seven years.

CREDIT FREEZE -  As of late 2007 any individual who wants to can place a credit freeze on their account which restricts access to your credit file all together and can only be lifted by you.  A credit freeze is more severe than a fraud alert a freeze completely limits access to creditors or potential identity thieves who may want to open accounts in your name.  If you are the victim of identity theft, credit freezes are usually free in most states; a small charge may be required for those who are not currently victims.

MONITORING:

• Make sure that your monthly statements arrive in a timely manner, keep a record or chart of your normal cycle and check off each statement when it arrives.  If there is an interruption immediately contact the vender.  It is possible that an identity thief used a change of address request to reroute the statement their way.  He/she would receive the statement and have some time to use or sell the information prior to you noticing that it did not arrive.
• Early detection significantly reduces the damage and time spent on resolving issues.
• Closely review each statement to make sure they accurately reflect any and all transactions and that there are no discrepancies or recent changes to the accounty information.
• Review your credit report at least once a year preferably twice a year to be safe.  Look for accounts and inquiries of any kind that seem strange or do not belong to you.
• Make sure you apply for your free annual credit report at annualcreditreport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to:  Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA  30348-5281.  For Maryland residents there is a state provision that allows you to get an additional free credit report in addition to the federal report.  Maryland resident should contact the credit bureaus directly to facilitate their requests for the additional report. 
• If you are denied credit, immediately investigate the reasons why.
• Be prepared, cautious and always document any inquiries or requests you receive asking about you or your personal information when you did not initiate contact. 
• When writing a check using an ATM machine or facilitating a credit card transaction, monitor your surroundings and proximity of others, do not say or show card numbers carelessly.
• Watch for suspicious activity; individuals going through trash cans and dumpsters, solicitors, individuals representing themselves as police, government or firefighters, etc., anyone loitering around information counters or ATMs.
• Always balance and reconcile your checking accounts on a monthly basis.