Keith Londrie asked:


Identity theft crimes are not new, but they have become more pervasive in the past decade. One of the most insidious forms of white-collar crime, identity theft is a federal offense under the Identity Theft and Assumption Deterrence Act. It occurs when someone deliberately assumes your personal identity to impersonate you in a legal sense. There are people out there who are malicious and want to mess your life simply because they can. Businesses and financial institutions that lose $52.6 billion each year are under tremendous pressure from consumers to tackle this problem.

Last year, identity fraud crimes topped the list of complaints reported to the Federal Trade Commission (FTC), the leading governmental agency offering identity theft help, for the fourth consecutive year. The FTC collects complaints about identity theft from consumers who have been victimized. Although the FTC does not have the authority to bring criminal cases, it can offer identity theft help by providing information to assist the victims in resolving the financial and other problems that can result from this crime. As additional identity theft help, the FTC also refers victims complaints to other appropriate government agencies and private organizations for further action. The support of these knowledgeable resources expedites recovery, while enhancing your peace-of-mind.

Accurate and up-to-date information is the most critical element to minimize risk. For this reason, Federal Trade Commission recently launched an identity theft help web site called annualcreditreport where all consumers are eligible for a free copy of their credit reports. In order to effectively respond to suspected ID fraud you should place an identity theft alert in one of the three consumer reporting agencies and that agency will notify the other remaining two. These agencies are: Equifax at 1-800-525-6285, TransUnion at 1-800-397-3742 and Experian at 1-800-680-7289. These credit reporting agencies can also be found online.

The ID Theft Clearinghouse managed by the FTC is a tool designed to coordinate law enforcement efforts in the United States. But, in the end, local law enforcement agencies like the police and district attorney end up dealing with most identity fraud cases. If you have been a victim of identity fraud, it’s these local agencies that will mostly likely offer identity theft help.

It would also be a good idea to study some of the different methods of identity theft so that you can effectively combat them. Do things like shredding your important documents with any account information or identifying information.



Suzanne

Lisa Carey asked:


Identity theft is on the rise, and is fast becoming one of the top five most often occurring crimes. This crime cost victims, money and time, as well as in some cases even further damages to their health and family. In many instances, it can take up to 400 hours to be resolved, with monetary damages measuring at $5,000.00.

Many states have taken steps to help protect consumers from identity theft, as well as to assist them in recovering. There are now special investigative units within many police departments, as well as State Attorney Generals. However, the state of Texas has recently passed new legislation to help victims of identity theft overcome one of the most significant problems with identity theft that of bank (checking) account theft. Thousands of people each year have had checking accounts opened in their names, checks drawn on the account and thousands of dollars spent, committing identity theft in the form of check fraud.

In the past, check fraud and identity theft victims believed that by simply closing the accounts, after the crime has been discovered, would be enough to stop the unauthorized use of their identity and the account. However, banks had no way of sharing the information about closed accounts with check verification companies that merchants use to determine if checks are legitimate. Identity thieves could use victim’s checks on an account for weeks even though the owner had closed the account and merchants believed they had a reliable system for verifying accounts. This left many retailers with “bad checks” and gave the thieves the opportunity to cash in on this weakness in the banking system.

The Texas Department of Banking adopted the Closed Account Notification System, or CANS, in March 2008. It is believed that this form of protection against identity theft for banks, individuals and retailers is the first of its kind. Representative Helen Giddings (Dallas) authored House Bill 2002, resulting in this protection system and service.

House Bill 2002 requires banks and credit unions in Texas to submit information concerning suspected compromised bank accounts to a secure electronic notification system at a customer’s request. This notification then alerts companies who offer check verification, to the potential identity theft and fraudulent use of checks from a specific account.

The use of House Bill 2002 establishes a secure electronic notification system, for consumers, banks and check verification systems. According to Representative Giddings, “Notification happens by the second business day so that thieves are stopped in their tracks. No longer will identity thieves be able to profit from their crimes by passing bad checks for weeks. Millions of dollars will be saved, but most importantly, stopping identity theft early will help victims restore their credit and good name.”

The new law gives financial institutions additional options to help customers when identity theft or fraud has compromised their accounts. In addition to closing any compromised deposit accounts, the customer may ask the financial institution to send a notice to all major check verification companies.

In order to for consumers to use this service, they must request the action through their bank. It does not happen without their request. Additionally, consumers must provide their financial institutions with: a copy of the incident report or police report case number; a sworn, signed statement that the customer has been a victim of identity theft; and

a written, signed authorization allowing the financial institution to submit the account information to CANS.

This service is provided at no cost to all financial institutions in Texas. To participate, banks must register through a secure web page provided by the Texas Department of Banking. So it is not only important for consumers to request these services, but it is important that your banking institution is participating in this service. To determine if you bank is using this service or has registered to participate in this program talk to your branch or contact the Texas Department of Banking.

Each and every transaction that occurs as a result of identity theft adds to the financial and emotional burden experienced by the victim. With each fraudulent check passed, victims and retailers are both left with losses of time and money. This new law will help consumers to stop identity thieves sooner, as well as stop the cycle of future crimes.

Will other states follow the innovations begun by the state of Texas in providing protection from identity theft for their constituents with House Bill 2002? How effective will this service be? This is yet to be seen, but it all starts with the consumer, they must request participating in the notification system and begin the using the services provided to them to counter the effects of the crime of identity theft.



Dennis

Wade Robins asked:


Identity theft has recently become a widely recognized problem, although it only started being mentioned in literature in the 1990’s. It is one of the fastest growing crimes in the world and therefore one which we do all need to be aware of and take precautions against. In this article we will look more specifically at what identity theft is in order to give you more background in order to fight identity theft and credit card identity theft.

Identity theft consists of any crime where a criminal uses a person’s personal information such as name, social security number or other personal identification facts in any illegal manner. This may include credit card identity theft where the criminal uses the person’s name and details to either open up a new credit card in the other person’s name in order not to pay and so works up debt in the other person’s name; or taking details of that persons credit card and creating a fake copy which they then use. It may also consist of medical identity theft where a criminal uses someone’s personal details and medical information illegally. For mopre info see http://www.preventidentitythefthelp.com/Identity_Theft_Statistics/ on Identity Theft Statistics.

Credit card identity theft may occur in a number of different ways. Firstly, someone could scan the information off your credit card while you are not watching and use it to create a duplicate card; they could actually steal your card and use it for their own purposes; or they may open a credit card in your name, using your details but a false address and never pay the bill.

Identity theft occurs when people get hold of your personal details either through credit card skimming, stealing mail out of your mailbox or trash or perhaps breaking into hospital records or other places where your personal details are kept.

In order to best protect yourself against identity theft you should ensure that any paper that you put into the trash is properly shredded beforehand, that you request not to be on any mailing lists for credit offers and opt out of other mailing lists where people send you information in the mail. You should also ensure that your credit card never leaves your sight in stores or restaurants and if you are unsure of the place rather try to pay by cash. Learn as much as you can about identity theft in order to get more information on how to protect yourself.

In this article we have tried to briefly summarize identity theft and credit card identity theft. It is a fast growing crime and one for which we all need to protect ourselves. Personal information may be stolen and used in a number of different ways and you should be aware of these ways and how you can best fight identity theft.



April

Frank Brammer asked:


Some definitions from the web are:

Identity theft occurs when somebody steals someone else’s name and other personal information for fraudulent purposes.

Stealing victims’ personal information and credentials, often to make purchases.

The act of impersonating another, by means of using the person’s information, such as birth date, Social Security number, address, name, and bank account information.

The co-option of another person’s personal information (e.g., name, Social Security number, credit card number, passport) without that person’s knowledge and the fraudulent use of such knowledge.

and from Wikipedia: Identity theft (or identity fraud,) occurs when someone wrongfully acquires or uses another person’s personal data, typically for their own financial gain. Sometimes it is referred to as “identity fraud” since the criminal impersonates rather than ‘removes’ the victim’s identity.

Most of these definitions refer to financial gain. For the criminal there usually is a substantial financial gain. For the victim, the loss is usually much more then financial. Credit theft is the most common form of identity theft. It is the reason there is so much marketing around credit monitoring services. Unfortunately, only about 28% of the identity theft crimes are credit related. It’s unfortunate because credit is much easier to repair then the damage caused by most other forms of identity theft. More about this in Identity Theft (Part II).

What identifies a person? First, take a small town view. In most cases a person is clearly identified by their first name or a nick name, and sometimes via a relationship to another person in town. That identity is usually good for a lot. Even today, in many small towns, a local can buy goods at the local mom and pop with just a smile and “put it on my tab”. Try that at Wal-mart. So outside of small town USA how is business done? In many cases it’s credit. Maybe not as friendly as the small town approach, but usually more reliable. The down side is it’s not really a person that is identified. It’s an account. An account that is represented by a number. A number that is link to some other numbers, a name and an address. And of course there are millions of accounts, names and addresses. How does a business validate the person before them with a credit card is really the person behind the credit in the first place? The business can’t validate this, and that is the dark area the criminal operates in. The only piece of data a criminal needs from you is your name and Social Security Number. With that little bit of information they can virtually recreate you at a different address, with tons of credit cards and possibly much much more.

There is a lot of advise on how to avoid identity theft. Shred your mail. Don’t give personal or private information over the phone. Check the mail every day and stop mail delivery when out of town. Keep all documents safe and secure. Do this, do that, watch out, jump over this bar, duck under this bar, snake through this hoop and cross fingers and prey like heck. These are good procedures to follow. They just won’t help when the government leaves millions of records unsecured, or AOL releases millions of personal searches, or a business is hacked and it’s databases are compromised. Go to Google News and do a search on “identity theft”. Read the stories. There are hundreds, thousands and sometime millions of identities compromised every day. It is not a matter of if, it’s a matter of when virtually every personal identity will be compromised.

The probability that an identity will be compromised is nearly 100%. No one person has complete control over own data. Identity theft protection cannot be accomplished though personal protection of one’s data. Is this sounding a little redundant? It’s because this point is too important to miss. Preventing an identity form being compromised is not possible. Protecting your identity is possible.



Lawrence