Identity Theft
The Identity Theft and Assumption Deterrence Act states identity theft is when someone "knowingly transfers or uses, without lawful authority,
a means of identification of another person with the intent to commit, or to aid or abet, any unlawful activity." This means when someone uses
your name, Social Security Number, credit card, or other personal information to commit fraud (and sometimes more serious crimes), they are
stealing your identity.
Identity theft is not as simple as someone walking off with your credit card and buying a big-screen TV. Identity theft is fraud, but in a
different way. While you can always cancel a credit card and recoup most or all of your loss, identity theft goes deeper. It's the control
over your name as a financial entity. This goes far beyond simple credit card charges.
Identity theft can include maxing out your credit cards, in addition to things like draining your checking and savings accounts, opening new
credit accounts, buying cars or houses, going on trips to far off places, and getting a drivers license in your name. The most painful part
about all of this is that you will be held liable for what thieves do with your name. Jobs opportunities can be lost, loans on houses and cars
can be refused, and you can be arrested. You can spend years paying off debt you didn't incur or sorting out a crime you didn't commit.
Identity theft is a demoralizing, life changing event that often doesn't end in justice. Those that go about stealing other people's identity
are rarely caught. This fact, combined with big payoffs, is prompting thieves to be more aggressive. Some have moved beyond looking through
your trash for checks or trying to get your personal information over the phone to hacking into large corporate databases with millions of names.
Is ID Theft a Problem?
The simple answer is yes. Identity theft is a big problem. In fact, it's a $53-billion-dollar problem that continues to grow. $5 billion of
that is directly paid by people like you that are defrauded. The other $48 billion is passed on to you by businesses that are compelled to
charge higher prices to cover their loss.
Vital information about identity theft:
- Every 3 seconds there is a new victim
- 19 victims each minute
- 1,140 per hour
- 27,400 per day
- 10,000,000 estimated this year
The 10 million estimated victims come directly from 206 million adults in the United States. More accurately, they come from 154 million people
that are eligible for credit (about 75% of the adult population). And because identity theft is an ongoing problem, it is estimated that 20% of
all Americans will be victims by the end of 2007. That's one in five people.
High profile identity theft cases:
- CardSystems has 40 million credit and debit accounts compromised
- CitiFinancial loses 3.9 million customer records
- DSW Shoe Warehouse has information on 1.4 million credit cards, debit cards, and checking accounts stolen
- Bank of America loses a backup tape with credit card information for 1.2 million government workers
In a brief year, over 48 million identifying records on people just like you was stolen. And this only accounts for those records that were
stolen in bulk. Stolen records on an individual level often go unreported. All this underscores the importance of knowing how identity theft
happens and what you can do to prevent it.
How Does ID Theft Happen?
Identity theft can happen in a number of ways. Their methods range from digging through your trash to hacking into corporate databases. They
can get information about you on a personal level, from your employer, or through other ways. It's important to know how thieves go about
stealing your identity so you can take appropriate steps to stop them.
Stealing Your Identity From You
The following are ways thieves can steal your identity on a personal level:
- "Skimming" your credit or debit card number by using a device to store it as your card is processed at a place of business
- Taking your purse or wallet
- Stealing your mail (bank or credit statements, new checks, credit offers, tax information)
- Breaking into your home and taking personal information
- "Pretexting" (phone) or "phishing" (internet) where thieves pose as a business or someone performing a survey to get personal information
- "Dumpster diving" by going through your trash (can also be done at your place of work)
Stealing Your Identity at Your Place of Work
The following are ways thieves can steal your identity at work:
- Hacking into company computers
- Bribing employees who have access to your records
- Stealing physical records
- Getting information directly from you by posing as someone else
Other Ways to Steal Your Identity
The following are additional ways thieves can steal your identity from you:
- Submitting a "change of address" form to the post office to get your mail
- Using their employers authorized access to your credit information
- Posing as someone like a landlord or employer that has the right to access your credit information
As you can see from the methods that ID thieves use, you can do things to prevent some, but not others. It's important that you take the
steps you can to prevent identity theft from happening to you and getting the help you need for the things that are out of your control.
How to Protect Yourself
Awareness and prevention are the best protection against identity theft. It's interesting to note that only 15% of victims find out their
identity has been stolen because they've taken positive action. The other 85% find out after the fact. It's because of this that the average
loss is so significant. On average, for cases that go unprosecuted, $16,000 is paid by victims, while the other $74,000 is paid by businesses.
Steps to Take in Protecting Your Identity
Being protective of your personal information is absolutely necessary in today's world. Here are some steps you can take to do that:
- Do not download software from websites you do not know
- Use anti-virus and firewall software on your computer
- Do not open email attachments unless you know the person and are expecting the file
- Type all website addresses into your address bar instead of clicking on the link in the email
- Use passwords that combine numbers and letters and commit them to memory
- Do not give out your Social Security Number or other personal information
- Do not put personal information on checks
- Use a shredder on all financial documents before placing them in the trash
- Get a locking mailbox or get all mail delivered to a post office box
- Purchase low-cost identity theft protection
The things on this list may or may not be common sense to you. Used in combination, they can help to protect you against identity theft.
Identity Theft Protection
Identity theft protection is a new compressive service that costs very little and can make all the difference in protecting your identity.
The following are some of the things included in this protection:
- Safeguards to put in place for prevention and detection
- Directions on how best to handle you physical documents
- Software recommendations for protecting your computer
- Scheduled and event-driven delivery of financial dossiers
- Alerts on any large scale identity theft
- $25,000 insurance against liability, legal costs, and lost productivity
- Individual support in case of ID theft, including a Recovery Advocate
An identity theft monitoring service is 24/7 peace of mind that goes a long way in protecting
something that is difficult, if not impossible to get back—your identity. It's a critical part of preventing identity theft and just as
important as a seat belt or health insurance because of the devastating effect identity theft can have on your life.
For many, alerts are the most valuable part of the service. Get notified of new information that appears on your credit reports or public
records. This includes loan, credit card, and bank account activity, as well as drivers license, Social Security Number, court, and employment
record activity. This level of awareness helps you catch identity theft before it gets out of control, helps you minimize your liability, and
gives authorities a better chance of catching those that are trying to defraud you.
Start protecting yourself today! Awareness and prevention are the best protection against identity theft.
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