FTC: Identity Theft is the Fastest Growing Crime
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In 2006 the Federal Trade Commission (FTC) estimated that 8.3 million Americans were victims of identity theft. In recent reports they now estimate that as many as 10 million people in the United States fall victim to identity thieves each year, costing businesses $50 million in fraudulent charges and innocent victims $5 million just to repair their good names.
There is no doubt that in a technology driven world, where personal information is easily accessible, identity theft is the fastest growing crime in America. Because each case of identity theft looks slightly different, there is no blanket solution for stopping all forms of this crime and it is up to consumers to protect themselves. Identity theft should not be taken lightly as it can allow someone else access to your good credit while simultaneously preventing you from having access to the good credit you worked hard to establish.
Several years ago, when identity theft was a newer crime, it was wrongly assumed that all thieves could do was steal your existing credit card numbers and make fraudulent charges. But it has now been proven that advanced identity thieves know how to take things a step further and open new accounts of all kinds with a person’s social security number. Innocent people just like you have requested their free annual credit report only to be shocked by auto loans, utility accounts and even mortgages that have been taken out in their names without their knowledge. Some documented cases boast over 100 fraudulent accounts being opened for a single social security number. Since the crime is ever expanding, more and more people are vulnerable to it each and every year.
How Thieves Get Your Information
The FTC has determined that there are primarily three ways in which thieves seek to steal consumer’s information: mail, trash and wallets. Most people don’t think of junk mail as anything more than an annoyance. But identity thieves see junk mail as an opportunity—especially all of those pre-approved credit card offers. However, it’s not only junk mail that thieves want to steal. Existing bills can provide them with even more information about you so they might steal those too.
As many as 400,000 people a year have reported that stolen mail was the entry point identity thieves used to begin the process of hijacking their identities, and therefore their lives. Mail theft is such a problem that the United States Postal Inspectors have become a leading force in the fight against identity theft. You can join them in their efforts by mailing all bills and important documents from the post office (instead of from your own mailbox) and monitoring your mail closely. If you aren’t receiving mail you normally do, you should alert your postman as you may have been a victim of mail theft.
Another way you can prevent your information from falling into the clutches of an identity thief is to purchase a cross-shredder and to shred all documents (bills, bank statements, credit card offers, etc…) that may have any account numbers or your social security number on them. Cross-shredded confetti won’t provide thieves with the kind of party they were looking for in your trash can, but it will help insure that your identity remains with the only person it belongs to: you.
Wallets and purses may seem like a small prize in comparison to some of the debts big-time identity thieves have been known to accrue. But in the eyes of a crook your wallet or purse can be the perfect entry point to a very big pay day. Protect yourself by carrying as few credit cards as possible (keeping it to one would be wise), and never carry your actual social security card on you unless you absolutely have to. Instead, memorize the number and only give it out when absolutely necessary. And even then, ask the institution you are giving it to how they protect your privacy and dispose of and store your personal information.
Keeping Tabs on Thieves Who May Be Onto You
Even when taking all identity protection steps, a professional id thief may still somehow outsmart you. That’s why you need to regularly take steps that will help you detect any thieves who may have compromised your information so that you can catch them before the damage is substantial. There are laws in place to protect consumers from incurring out of pocket expenses pertaining to identity theft. But the sooner you catch an identity thief, the better your chances that your issue can be resolved quickly and with minimal effort and expense. In rare cases, where identity thieves have created and defaulted on multiple accounts in a person’s name, collections agencies might pose a problem for innocent victims by accusing them of simply trying to get out of delinquent accounts. At that point it might take up to 100 hours and several thousand dollars to clear your good name.
To prevent that from happening to you, log onto http://www.annualcreditreport.com and obtain your free credit report from each of the three agencies (Equifax, Experian and TransUnion) each year. It’s recommend that you obtain one report from each agency as not all credit accounts show up on each report. But in an effort to keep the closest eye on your credit, it is suggested that you don’t obtain all three reports at once and that instead you space them out and obtain one every four months. It’s also a good idea to check your credit report before applying for a loan or a new job. That way you are alerted to any suspicious or fraudulent activity done in your name and you are able to repair it before you lose a loan or a job that should have been yours.
Relatives who have the same first and last names, but different middle names, or fathers and sons with identical names (plus a Sr. or Jr. suffix) may find that their information commonly shows up on the other person’s report. It’s important that you distinguish yourself from others with your name so that your credit score is an accurate reflection of your spending and borrowing practices and no one else’s. Taking the time to correct minor discrepancies will make it easier for you to deal with major problems should you ever need to. Some criminals play off of the same or similar name among relatives scenario by opening accounts with your social security number and a different middle name or a misspelled last name, which will still show up on your credit report but won’t look as suspicious to creditors if a thief’s spending practices don’t match yours.
Reporting Fraudulent Activity or Inaccuracies
Most people panic when they realize their identities have been stolen, and they don’t normally think clearly. So it’s important that you familiarize yourself with the four-step process to stopping identity theft before you ever need it. First, it is almost always necessary to file a police report so there is proof that a crime has been committed. In the event that future debt collectors come calling and don’t believe that your identity has been stolen, having a police report may get them to back off and stop bothering you.
You also need to contact the three major credit agencies (Equifax, Experian and TransUnion) immediately so that the thief cannot continue to open new credit in your name or reopen any fraudulent accounts you may close. Ask each agency to place a “fraud alert” on your credit so that all future requests for credit must be verified by you over the phone before any new accounts can be opened.
Once you have done that, it is also important that you contact the institution that owns the compromised or fraudulent account and inform them of what happened so that you can begin the process of closing that account and you can prevent that thief from doing further damage. It’s also important that you file an ID Theft Complaint Form with the FTC so that your case can become part of a criminal investigation and your thief can possibly be caught and prosecuted for the crime.
In all cases, the quicker you act the easier it will be to resolve your situation. Taking extra steps to protect yourself from becoming a victim and taking steps to monitor whether or not your credit has been compromised can be the difference between a happy ending and a long reoccurring nightmare. The government recognizes identity theft as a serious crime and has even set up The President’s Task Force on Identity Theft to help inform and protect consumers. And the FTC has an entire website set up to help educate people about the growing problem of identity theft (http://www.gtc.gov/idtheft). But these, and other, resources are only as valuable to you as you make them. Make every effort to protect your identity, or you may find that one day it belongs to someone else.