Identity theft is serious business. In fact, the Federal Trade Commission (FTC) estimates that as many as 10 million Americans have their identities stolen each year.
Consumers victimized by identity theft may lose out on job opportunities, or be denied loans for education, housing, or cars because of negative information on their credit reports. They may even be arrested for crimes they did not commit. The potential for damage, loss, and stress is considerable.
Awareness is an effective weapon against identity theft. You need to be aware of how information is stolen -- and what you can do to protect yours.
How can they steal your identity?
Identity theft starts with the misuse of your personal identifying information? your name and Social Security number, credit card numbers, or other financial account information. For identity thieves, this information is as good as gold. Skilled identity thieves may use a variety of methods to get hold of your information: posing as legitimate companies through email, in a practice known as "phishing." Or they might lie to you on the phone. They may steal your mail, wallet or purse and/or they may take your information from businesses or other institutions by stealing personnel records, bribing or conning an employee who has access to these records, or breaking into your records electronically. Some identity theft victims even report that their information has been stolen by someone they know.
How can they hurt you?
Once they have your personal information, identity thieves go about their business in a variety of ways.
Credit card fraud:
n They may open new credit card accounts in your name. When they use the cards and don't pay the bills, the
delinquent accounts appear under your name?on your credit report.
n They may change the billing address on your credit card so that you no longer receive bills, and then run up
charges on your account. Because your bills are now sent to a different address, it may be some time before you
realize there's a problem
Phone or utilities fraud:
n They may open a phone or wireless account, or run up charges on your existing account.
n They may use your name to get utility services like electricity, heating, or cable TV.
Bank/finance fraud:
n They may open a bank account in your name and write bad checks.
n They may authorize electronic transfers in your name from your accounts, and drain your savings.
n They may take out a loan in your name.
Government documents fraud:
n They may get a driver's license or official ID card issued in your name but with their picture.
n They may use your name to get government benefits.
n They may file a fraudulent tax return using your information.
Other fraud:
n They may get a job using your Social Security number.
n They may rent a house or get medical services using your name.
n They may give your personal information to police during an arrest. If they don't show up for their court date,
a warrant for arrest isissued in your name.
How do you know if your identity has been stolen?
Many consumers learn that their identity has been stolen after some damage has been done.
n You may find out when bill collection agencies contact you for overdue debts?debts you never incurred.
n You may find out when you apply for a mortgage or car loan?and learn that problems with your credit
history are holding up the loan.
n You may find out when you get something in the mail about an apartment you never rented, a house you
never bought, or a job you never held.
The best way to find out is to monitor your accounts and bank statements each month, and check your credit report on a regular basis. If you check your credit report regularly, you may be able to limit the damage caused by identity theft.
What can you do?
DETER, DETECT, DEFEND
If your identity has been stolen, repairing the damage caused by identity thieves can be a costly, time-consuming, and stressful process.
While nothing can guarantee that you won't become a victim of identity theft, you can take specific steps to minimize your risk, and minimize the damage if a problem develops.
Deter identity thieves by safeguarding your information.
n Shred financial documents and paperwork with personal information before you discard them.
n Protect your Social Security number. Don't carry your Social Security card in your wallet or write your
Social Security number on a check. Give it out only if absolutely necessary or ask to use another
identifier.
n Don't give out personal information on the phone, through the mail, or over the Internet unless you have
initiated the contact and know who you are dealing with.
n Never click on links sent in unsolicited emails; instead, type in a Web address you know. Use firewalls,
anti-spyware and anti-virus software to protect your home computer; keep them up-to-date. Visit
OnGuardOnline.gov for more information.
n Don't use an obvious password like your birth date, your mother's maiden name, or the last four digits of
your Social Security number.
n Keep your personal information in a secure place at home, especially if you have roommates, employ
outside help, or are having work done in your house.
Detect suspicious activity by routinely monitoring your financial accounts and billing statements. Be alert to signs that require immediate attention:
n Mail or bills that do not arrive as expected
n Unexpected credit cards or account statements
n Denials of credit for no apparent reason
n Calls or letters about purchases you did not make
Inspect your credit report. The law requires the major nationwide consumer reporting companies -- Equifax, Experian, and TransUnion -- to give you a free copy of your credit report each year if you ask for it.
Visit www.AnnualCreditReport.com or call 1-877-322-8228.You also can write: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
Review your financial accounts and billing statements regularly, looking for charges you did not make.
Defend against identity theft as soon as you suspect a problem.
n Place a "Fraud Alert" on your credit reports, and review the reports carefully. The alert tells creditors to
follow certain procedures before they open new accounts in your name or make certain changes to your
existing accounts. The three nationwide consumer reporting companies have toll-free numbers for placing an initial
90-day fraud alert; a call to one company is sufficient: Equifax 1-800-525-6285, Experian 1-888-EXPERIAN (397-
3742) and TransUnion 1-800-680-7289
Placing a fraud alert entitles you to free copies of your credit reports. Look for inquiries from companies you haven't contacted, accounts you didn't open, and debts on your accounts that you can't explain.
n Close accounts. Close any accounts that have been tampered with or established fraudulently.
n File a police report: File a report with law enforcement officials to help you with creditors who may want
proof of the crime.
n Report your complaint to the Federal Trade Commission online at ftc.gov/idtheft, phone 1-877-IDTHEFT
(438-4338) or TTY, 1-866-653-4261 or mail Identity Theft Clearinghouse, Federal Trade Commission,
Washington, DC 2058
Source: Federal Trade Commission's Fighting Back Against Identity Theft. To get a copy of the CD, visit www.ftc.gov/idtheft.
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