Identity theft is a crime in which someone wrongfully obtains and uses another person’s personal data in some way that involves fraud or deception.

Identity thieves get your personal information by:

• Stealing your wallet or purse.
• Going through your trash.
• Stealing your mail.
• Opening a new credit card account in your name.
• Opening a bank account in your name.
• Making counterfeit checks or credit or debit cards and draining your bank account.
• Stealing your information through email or the phone by saying that they are from a legitimate company and claiming that you have a problem with your account.
• Stealing your credit or debit card numbers by swiping your card or attaching a device to an ATM machine where a thief could enter or swipe your card.
• Posing as a landlord or employer or someone else who might have a legal right to your credit report.

You can tell if you are a victim of identity theft by:

• Ordering a copy of your credit report and looking for irregular information such as new credit accounts.
• Receiving credit cards for which you did not apply.
• Receiving calls from debt collectors for items or services that you did not buy.
• Having credit denied for no apparent reason.

What should you do if you are a victim of identity theft?

1. Place a fraud alert on your credit reports and review your credit reports.

   • Contact one of three consumer reporting companies to place an alert.
     • Equifax: 1-800-525-6285 or www.equifax.com
     • Experian: 1-888-397-3742 or www.experian.com
     • TransUnion: 1-800-680-7289 or www.transunion.com
   • Review your credit report to see if it contains inquiries from companies that you did not contact, accounts you did not open, and debts on your account that you cannot explain.
   • Check to be sure that your personal information is correct.
   • Continue to check your credit reports periodically to make sure that no new fraudulent activity has occurred.
     
     
2. Close accounts that you know or believe have been tampered with.
3. File a report with local police or police in the community where the identity theft took place.
4. File a complaint with the Federal Trade Commission at 1-877-438-4338 or www.ftc.gov/bcp/edu/microsites/idtheft/.

What you can do to avoid identity theft (Consumer Reports, October 2006, p. 44)

• Don’t fill out surveys on warranty cards.
• Opt out of telemarketing by putting your name on the Federal Trade Commission’s Do Not Call registry by calling 1-888-382-1222 or using www.donotcall.gov
• When you receive a notice that you can opt out of the company’s use of your information, follow through by opting out (you may need to call to do so).

 

Checklist for avoiding identity theft.

ü      Examine credit reports from the major agencies at least once a year.

ü      Be careful about giving information over the phone.

ü      Minimize the number of identification and credit cards you carry with you.

ü      Cancel credit cards you have not used in the last six months.

ü      Shred financial statements before putting them in the trash.

ü      Examine bank and credit card statements each month.

ü      Make sure you know when your bills and bank statements should arrive. If one is late, call.

ü      Use direct deposit, whenever possible.

ü      Be suspicious if you get a call from someone to update your “records.”

ü      Commit passwords to memory.

ü      Destroy the hard drive of your computer when you are disposing of it.

ü      Burglar proof your home.

ü      When you are away, have the Post Office hold your mail.

ü      Be cautious about where you place outgoing mail. Use a locked box if possible.