Identity Theft, Now that's Personal

What it is

Identify theft is when your personal data is stolen, either physically or virtually. Your personal information includes bank account numbers, credit card numbers, mother’s maiden name, your income, your Social Security number, your name, address and phone number, and your birth date.

How it happens

Thieves can get access to your personal information in many ways. Whenever you write 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, apply for a credit card, throw away unsolicited offers for credit cards you received in the mail and don’t want, you are leaving traces of your personal data. By losing your wallet or even your address book, your Palm Pilot or your Blackberry, you increase the chances that a thief can rob you of your personal information. Also, thieves sometimes complete a “change of address” form at the post office to divert your mail to another location.

What it’s used for

Identity theft is used to charge purchases to your credit card, for example. In some cases, the thieves call the credit card issuer and change the mailing address so there is a delay before you are even aware that there are fraudulent charges to your card.

Personal information can also be used to open a new credit card account. If their bills aren’t paid, you are penalized for delinquency by getting a low rating on your credit report. Phone or wireless services might be opened in your name but without your knowledge. A bank account might be opened in your name, with bad checks written against that account, which also affects your credit rating.

It is also possible for the holder of your personal information to file for bankruptcy under your name to avoid paying debts. Checks and debit cards in your name can be counterfeited. Automobiles can be purchased in your name but the loans are never paid. It is even possible that your name is given to the police during an arrest and then, when a court date is set and the plaintiff doesn’t show up, an arrest warrant is issued in your name.

How to prevent it

Don’t give out personal information on the phone, through the mail or over the Internet unless you have initiated the contact or are sure you know whom you are dealing with.

Periodically check your credit reports from each of the three major credit bureaus: Equifax, Experian, TransUnion to make sure the information on the report is accurate.

Pay attention to your billing cycles on credit cards and bank statements. Follow up with creditors if bills do not arrive on time.

Shred all financial and personal documents that you are not using. When you get offers for credit cards in the mail or even checks sent by credit card companies for low interest use or balance transfers, don’t just throw away the unused or unwanted documents. Thieves love to look through garbage to open envelopes, etc. Shredding the documents prevents anyone from looking at your information.

Keep financial documents in a secure place. Use safety deposit boxes. For information you need to have at home, keep it under lock and key.

Place passwords on all of your accounts. Avoid using easily available information like your mother’s maiden name or your birth date. When opening new accounts, if the application form has a line for your mother’s maiden name, use a password instead.

Inquire about virtual credit card numbers. Some major banks and credit card companies have instituted these numbers so that whenever you make a transaction online, your actual account number is never used. Instead a single-use card number is generated for purchases at a single website. Your real account number never travels to online stores.

What to do when it happens

• Call the FTC’s Identity Theft Hotline toll-free at 1-877-IDTHEFT (438-4338). The FTC developed the ID Theft Affidavit to help victims of Identity Theft restore their good names. It simplifies the process of disputing charges with companies where a new account has been opened in your name. For a copy visit www.consumer.gov/idtheft.
• Contact the three major credit bureaus:
  • TransUnion (800-888-4213)
  • Experian (888-EXPERIAN)
  • Equifax (800-685-1111)
• Close the accounts you believe have been affected.
• File a report with the legal authority in the community where the identity theft took place.

Source: Omni Financial®