IdentityTheft
Top Scams Used to Steal your Identity
“Phishing” – Internet scams, usually through email, requesting personal and financial information
“Dumpster Diving” – Information taken from bank, credit card, and other financial statements that have been improperly disposed of and retrieved from you garbage
Telemarketers – Imposter phone representatives that request personal and financial information
Facts &Figures
-
9.3 million fell victim to identity fraud within the last twelve months, according to privacyrights.org – 27.3 million victims in the last 5 years
-
Identity theft has cost businesses and consumers $56.6 billion in 2006, up from $54.4 billion in 2005
-
In 2006, the mean theft/fraud amount per victim was $6,383, up from $5,429 in 2004
-
In 2006, the mean time spent to clear identity theft from a victim’s record was 40 hours, 12 more hours than in 2005
-
Law enforcement across the U.S. agree that Identity Theft is the “fastest growing crime in the nation”
-
One out of four identity theft victims have no clue how their identity was stolen
-
Half of all identity thefts go unnoticed for over 1 month
-
One in ten crimes remains unnoticed for more than two years.
According to the 2005 FTC report, forms of identity theft include:
- Credit Card Fraud – 26%
- Home/Utilities Fraud – 17%
- Employment Fraud – 12%
- Government Document/Benefit Fraud – 9%
- Loan Fraud – 5%
Effects of identity theft include:
- Lose job opportunities
- Refused for education, housing, or cars loans
- Suffer deficiencies at work
- Detention for crimes not committed
Prevention &Recovery
Prevention
- Shred all documents with personal information, including:
- bank statements
- receipts
- canceled checks
- credit card offers
- medical bills
- insurance documents
- credit card “convenience checks”
-
Keep your PINs in a secure place – away from your checkbook, ATM, or debit cards
-
Do not carry your social security card in your wallet or purse
-
Place passwords on credit cards, bank accounts and phone accounts
-
Be careful with whom you share your personal information with, especially your social security number – Don’t email personal and financial information
-
As of June 2005 everyone is allowed one free credit report from each agency. Ladder requests so that you receive a free credit report every four months from each agency (www.annualcreditreport.com)
-
Update computer virus protection software and firewalls
-
Use a “wipe” software program before getting rid of a computer
-
Protect incoming and outgoing mail - change
-
Try not to store financial information on a laptop unless absolutely necessary
-
Pay attention to billing cycles
-
Carefully review financial statements
-
Find out who has access to personal information at work
-
Remove name from mailing lists
Recovery
The Federal Trade Commission recommends following these four steps if you fall victim to identity theft:
- Contact all three credit reporting agencies and place a fraud alert with the fraud department.
- Close fraudulently-opened accounts and file an ID Theft Affidavit.
- File a police report where the identity theft took place to use when disputing with creditors as proof of the crime
- File a complaint with the FTC.
Additional recovery actions:
- Check credit reports carefully
- Document your actions: telephone calls & letters to creditors and credit bureaus
- Keep copies of all letters sent to you from creditors
- Obtain postal receipts for letters sent to creditors and credit bureaus
Sources
Privacy Rights Clearinghouse. (2006, February). How many identity victims are there? Retrieved October 10, 2006, from http://www.privacyrights.org/ar/idtheftsurveys.htm#BBB06
Fight Identity Theft. (2006). Get free tips, tools, and information. Retrieved October 5, 2006, from http://www.consumer.gov/idtheft/.
Federal Trade Commission. (2006, January). Consumer Fraud and Identity Theft Complaint Report: January – December 2005. Retrieved October 5, 2006, from http://www.consumer.gov/sentinel/pubs/Top10Fraud2005.pdf.
Federal Trade Commission. (n.d.) Your National Resource About Identity Theft. Retrieved October 5, 2006, from http://www.consumer.gov/idtheft/.
Federal Reserve Bank of Boston. (n.d.). Identity theft. Retrieved October 19, 2003, from http://www.bos.frb.org/consumer/identity/index.htm.
Mayer, C. E. (2003a, July 1). Congress told to target identity theft [Electronic version]. The Washington Post, p. E01.
Stop thieves from stealing you. (2003, October). Consumer Reports, 12-17.
If you have been a victim of identity theft or would like to learn more, visit the links below.