Abhishek Agarwal asked:


Imagine this scene: You’re opening your bills, only to find one of your credit card account balances with an over-due five-digit charge. You know you didn’t make that purchase, so you refuse to pay for it. A few months later, you decide to buy a new car, so you submit a loan application to the car dealer. You get a phone call that afternoon with the bad news, “I’m sorry, Ms. Jones, but we are not able to extend credit to you at this time.” When you ask why, they tell you that your credit report indicated you’re in debt way over your ability to pay. Bummer! You’ve become a victim of identity theft.

Now imagine this: You finally order that credit report, like you’ve been meaning to do for years. When you get it, you learn that you own a house you don’t know about and you have credit card balances at three different stores you’ve never even heard of. Someone has stolen your identity to make their life richer! How did the identity theft happen? And what can you do about it?

There are many ways an identity thief can get your personal information to build a mountain of debt that creditors expect you to pay. Maybe they got hold of your name, address, and social security number by going through your garbage one night. Or perhaps you gave them the information when “their representative” contacted you to verify some details on your account. Or maybe they’re a computer hacker that figured out how to get your credit card numbers when you made a purchase at the local boutique. They may even have gotten your information by pretending to be you (or someone in your family) when they contacted your bank or service company. The worst-case scenario is when someone uses your social security number and then goes out and commits criminal acts. Ever seen the inside of a police station or jail? You could! There are a multitude of ways to become a victim of identity theft!

Identity theft and fraudulent use of personal financial records is a growing problem all over the world. In 2004, the U.S. Federal Trade Commission conducted a study that indicated over 9 million people are victims of identity theft every year. A 2003 study conducted in the United Kingdom suggested that 20% of all consumers had been subject to identity theft. Clearly, in the English-speaking world, identity theft is an ever-greater threat to your personal and financial well-being.

How Can I Prevent Having my Identity Stolen?

Here are some tips on things you can do (or not do) to guard your personal financial information, prevent identity theft, and protect your good credit rating.

- Always take your receipts with you after you’ve made a purchase. Leaving the receipt at the ATM or gas station is an open invitation for identity thieves.

- Maintain good files and records of your financial transactions. Know what you’ve purchased, when, and from whom. Store your old account statements in a safe place. And be sure to shred any papers with personal information before you throw it away.

- The FBI recently reported that a third of identity theft victims admitted the thief was a co-worker or friend. Be careful not to leave personal information out in the open on your desk or in your home office. And don’t ask anyone else to hold your personal papers for you. In this case, most of the identity theft suspects were well aware of their victim’s habits and lifestyle.

- Carefully guard your User IDs and passwords for online accounts. When you create them, don’t go for the easy-to-remember. People who know you may be able to guess simple, straightforward user IDs and passwords. And don’t write your passwords down or keep them where someone can get to them. If you store them electronically, make sure the files are protected.

- Get and keep regular copies of your credit reports and account statements. Use one or all of the three major agencies (Experian, TransUnion, or Equifax) to get your credit report. Don’t depend on less reputable reporting agencies.

- Opt out of mailing lists whenever you can, and ask telemarketers to “take your name off their list.” By law, they can’t call you again for a year. If you have any doubts, check with your bank and credit accounts to find out what they do with your personal information and what you need to do to better protect it.

- Don’t have printed or write your social security number on your checks. Might as well send it up a flag. Some states still use social security numbers for drivers licenses, but they are changing. Check with your DMV to see if you can have your drivers license changed to remove your social security number.

- Don’t keep a written list of your bank or other account numbers where they might be seen by someone else. Keep lists of this type of information under lock and key.

- Do not respond to and delete any e-mails that ask for an account number or other personal information. Stop internet and snail-mail credit card offers. Install firewall and anti-spyware on your computer for additional protection. If your computer has the feature, register your fingerprint as an additional safety feature.

- Purchase new checks from the bank, not a discount service. And rather than having your full name printed on the checks, use your initial.

- Do not carry PINs in your wallet or purse, and never give them out over the phone.

What If I’m Already a Victim?

If you think someone else is using your identity or personal financial information inappropriately, contact the nearest office of the U.S. Department of Justice. Contact your creditors to alert them to the fraud. Also inform your bank of the activity and secure their agreement to help protect your information. You may want to revisit the names of people authorized to access your personal financial information and limit it to essential parties only. Find out as much as you can about the accounts, purchases, and applications the identity thief has made using your name. Then contact those companies directly and immediately to make sure they close the accounts and notify law enforcement when they become aware of any additional transactions.

Immediately notify the credit reporting agency and creditors if you see suspicious activity or if you find errors like a closed account that shows as open or a paid-off balance that appears to be outstanding. You may have to provide documentation to support corrections, and you may have to make the same contact several times to assure the correction is made. But be persistent. Your credit report is a direct reflection of your financial dealings. Creditors and credit report agencies are obligated to report correct information.



Megan

Abhishek Agarwal asked:


In a 2004 study, the Ways and Means Committee of the U.S. House of Representatives reported that, in 2003 alone, almost 10 million Americans had become victims of identity theft. The crime cost consumers about $5 billion out-of-pocket and costs American business around $50 billion. As increasing news reports indicate, identity theft is the crime of the era. It’s increasing rapidly. Unfortunately, it’s also a difficult crime to catch and prosecute.

In 2003, victims of identity theft spent anywhere from $500 to $1200 and from 30 to 60 hours of their personal time trying to resolve the financial problems created by identity theft. Further, the crime itself occurred over a three- to six-month period in each known case.

We all hope we never become victims of identity theft. For one thing, you usually don’t learn you’re a victim until some debt collector calls you about a bill or a loan application is denied because of your poor credit history or low credit score. This news comes as a shocking surprise to most victims of identity theft, and the personal agony of financial loss and effort needed to resolve the problem take a huge toll. Identity theft victims often report they feel as violated as they would if they had been mugged or their house had been burglarized.

Today, prevention and early detection are best solutions to the identity theft problem. These criminals have a variety of ways to get your personal financial information. They may steal it from your garbage in the form of old bills or pre-approved credit offers. They may trick you on the phone or by e-mail into giving out your personal information. Someone you know and trust may have access to your personal information. Or perhaps someone with good eyesight is standing behind you, watching you enter your PIN at the ATM machine or grocery counter. These things are within your control, but there are other tactics outside your control. Identity thieves also trick the information out of banks and businesses, claiming they are research for a non-existent company or using false identities to secure the information. Hackers may sneak into the databases of large companies and download the information they keep for their clientele.

Once they have your personal information, they can submit false address change reports to your bank or creditors. They can apply for mortgages or loans or make purchases against your credit cards. You won’t know about it until the *#(& hits the fan, and your credit history is ruined.

1. How Can I Tell if Someone is using my Personal Financial Information Illegally?

So how do you know that an identity thief may be targeting your personal information? What are the signs to look for? And what do you do if you think you are a victim of identity theft? Here are a few of the things you can watch for to protect your personal financial information and your identity:

1. Order a credit report, at the very least, once a year. If a close review of your credit report reveals accounts you’ve never heard of or loans you did not make, you may be a victim. The report could also contain inquiries about your credit from merchants and vendors you didn’t apply to. These are all important red flags, and you should follow-up on the information immediately.

2. You receive a bill or statement from a company you didn’t open an account with.

3. You notice unauthorized or incorrect changes on your credit card or bank statement.

4. You get calls from business owners or debt collectors who claim you have a bill that is overdue for a product or service you never ordered or received.

5. You are denied approval of a loan or credit card application, even when you know your credit is good.

If you’ve noticed any of these warning signs, follow up immediately by contacting the credit card company, bank, or credit report agency with questions. Don’t accept inadequate answers to your questions. And continue to follow-up until all your questions have been answered and your credit account or report is accurate and up-to-date.

If you find you can’t resolve issues easily, you may be an identity theft victim already. Report this problem to law enforcement authorities immediately. Contact your bank, your creditors, and the credit report agencies to let them know the problem is occurring and ask them to freeze your accounts. Add special passwords that anyone inquiring about our using your accounts must know to get a transaction approved. Do what you can to find out what the identity thief has done. For example, where have they opened accounts or where have the applied for loans. Can you find another address associated with your name that is not familiar to you? If you identify the identity thief, do not contact them directly. Rather provide that information to law enforcement.

2. What Can I do to Prevent Identity Theft Before it Happens?

To avoid becoming a victim of identity theft, follow these guidelines:

1. Keep a very close eye on your credit card activities. Check statements closely as soon as you receive them, and confirm that you made or approved all of the purchases. If there are questionable charges on your statement, contact the company immediately to find out when and where the purchase was made and to formally dispute the charge. You might be surprised to know how many people fail to review their statements carefully each month. Failure to attend to your accounts could leave you thousands, even hundreds of thousands, in debt with no products or services to show for it.

2. Request credit report updates at least twice a year. Look for a lower-than-expected credit score, unfamiliar accounts, or credit inquries from companies you don’t do business with.

3. Be careful to protect your personal financial papers. Keep them in a secure location, preferably under lock and key. And don’t allow other people to access them without your express permission.

4. Be alert when you’re writing checks or using your ATM card. Is there anyone near enough who could read and steal personal information or your PIN number? Becareful to protect these items from view.

5. Deliver your bill payments directly to the post office, and don’t let your mail sit in your mail box too long. This is an open invitation to the ever-vigilant identity thief.

6. Use unexpected and unique passwords on all your internet accouts, mixing letters with numbers and symbols. And change your passwords at least every six months.

Keep up on the news about new identity theft strategies and scams. Read the paper and surf the internet to find out who’s doing what these days. Make sure you know what your creditors do with their customers’ personal information and demand they protect it.

Avoid becoming a victim of identity theft by applying common sense and careful thought to your everyday transactions. Question people who ask for inappropriate information and feel empowered to refuse to answer. Remember that you may not know your co-workers and acquaintances very well. Do not share your information with anyone you don’t trust 100%.



Monica

Abhishek Agarwal asked:


The crime of identity theft gets increasing attention. In 2005, ABC News conducted a poll that indicated consumer concerns about identity theft had risen sharply. They reported that, in 1998, fewer than 40% of U.S. adults were concerned about identity theft. By 2005, over 70% of all adults were worried that their personal information could be stolen through the internet. In 2006, over 90% of all New York voters were concerned about identity theft.

The news media, which is one of the most effective ways to learn about identity theft, is doing their job – at least as far as publicizing the degree of concern about identity theft. They have also been a good source of information about how individual consumers can prevent theft of their own personal and financial information.

In an era when electronic communications and the internet are making personal information easier to store and transmit, we are likely to continue to see increases in the number of crimes committed against unsuspecting consumers and wary businesses. The frequency of news stories reporting a companies’ failure to protect their customers’ information makes it clear that consumers and businesses alike are vulnerable to theft of personal information.

Today’s businesses that maintain databases of customers, their purchases, and their payments must be increasingly vigilant to protect that information from improper sharing and use. Although all big business is vulnerable, the most threatened sectors today are banking and lending institutions, real estate companies, facility management companies, and related fields. E-security becomes a bigger part of their operating costs every year, and the need for such security is supporting the growth of a new employment sector in the U.S. and abroad.

Responding as quickly as they can, both federal and state governments have passed or are working on updating laws that protect personal financial information and impose harsher penalties for the crime of identity theft. However, it is difficult to detect identity theft crimes while they are underway, and it is even more difficult to identify and catch the criminals responsible. A few identity thieves are even using their false documentation to conduct other crimes and escape prosecution.

New and different measures can be seen in the way credit and other financial transactions are done. One new protection is the “security freeze” that allows people to thwart access to their credit report without specific persmisions. Consumers must request the freeze from each of the three major credit reporting services. Companies are allows to charge a fee of $10 for this service, but senior citizens older than 64 years and persons who are victims of identity theft are exempt from this charge.

Computer and internet security continues to be a major issue for businesses, especially when they want to attract customers. Advertising increasingly describes tough security measures and assures personal privacy in an attempt to address public concerns about identity theft. Programmers and software developers are working hard in a number of areas to create hack-proof solutions to the problem of identity theft.

For small companies and individuals, the use of removable storage devices like CDs and external hard drives are a practical security solution. But for large companies with thousands to millions of accounts, sophisticate large-scale solutions like firewalls, fingerprinting, and random PIN generators maybe more cost effective. Computer encryption, though a mystery to many of us, is relied on more and more by business to protect sensitive data and personal information.

In today’s news-rich environment, it should be clear that the crime of identity theft is still on the rise. Certainly, more people are aware of and concerned about it than ever before. And so far, law enforcement has not been able to catch up with technology. Identity thieves are ahead of the curve today. But this could change rapidly with the development of new automated solutions and enhanced security practices.

Very recently, FOX News reported that peer-to-peer network file sharing is a critical internet security vulnerability, despite the rising popularity of these networks. According to the FOX News article, Mary Engle of the Federal Trade Commission said, “The danger here is clear, as it is commonly acknowledged that criminals now troll file sharing networks for the sole purpose of finding sensitive data that can be used to commit identity theft.” But fortunately, Ms. Engle reported, a new security software called Identity Finder helps users find personal financial information within files, e-mails, and web browsers and then enables individuals to delete or protect the data using encryption.

To learn more about identity theft and how to prevent it, visit the Identity Theft Assistance Center (ITAC) on the internet at www.identitytheftassistance.org/. ITAC is a non-profit group of financial service companies dedicated to help identity theft victims by reducing delays and frustration associated with restoring their personal financial integrity and identity. ITAC offers service for victims without charge, helping them inspect their credit reports for signs of identity theft and alerting consumers and businesses to possible fraudulent actions. In addition, ITAC is sharing this information with state and federal law enforcement in an attempt to help catch and prosecute the responsible criminals.



Frances

Abhishek Agarwal asked:


Stealing is against the law, no matter what form it takes. Theft threatens individual freedom and corporate security. Thankfully, there are laws to protect us from identity theft and related fraud.

People are becoming more aware of identity theft, but not many of us understand what it is and how it happens. In a 2003 study, the Federal Bureau of Investigation found at as many as 9 million people fall prey to identity theft every year. The impacts on personal financial security and business in general are huge. That same year, the Federal Trade Commission reported over $48 billion is losses to business and financial institutions and $5 billion out-of-pocket losses to American consumers as a direct result of identity theft.

Identity theft isn’t just a local or national problem. Ever-improving technology and communications has promoted identity theft to a worldwide problem. As we depend more and more on computers and online transactions, we become more vulnerable to the unscrupulous actions of identity theft.

What is Identity Theft?

Identity theft is a crime that occurs when someone steals your personal information, usually your full name, home address, social security number, or bank or credit account numbers. Once identity thieves have this information, they can apply for credit using your credit rating and ruin your credit score, not to mention your personal financial reputation. And the saddest part of it all is that a person doesn’t usually know it’s happening until his or her credit is already in jeopardy.

And with the miracle of the worldwide web comes the risk of having your personal information leaked through non-secure websites or tricked out of you by sly e-mail “company representatives” who want to “verify” your information. Some internet hackers have even stolen personal information for thousands of clients of a single company.

What Can I do to Protect My Personal Credit?

It’s not easy to protect yourself from identity theft. Most of it is intended to occur without your knowledge or consent. And there are many avenues for identity theft that are outside your control. But there are some things you can do to lessen the chances for identity theft.

- Secure your personal information at all times. Don’t leave lists of account numbers unlocked, and don’t share your user IDs or passwords with ANYone. Maintain as much control over your personal financial information as you can.

- Don’t throw mail away if in contains any personal information, including your full name and address. Shred these documents before putting them in the garbage.

- Educate yourself about the techniques and tactics used in identity theft and protect yourself accordingly.

- Don’t share personal account information with anyone, including co-workers, friends, and roommates. Unless they are also responsible for paying your bills, they have no reason to have this information. And don’t give them your passwords without a very good reason. If you do share your passwords, change them as soon as possible.

- Shred unwanted and pre-approved credit applications, and have your name removed from those mailing lists.

- Be careful when you make purchases online to use only secure servers and to carefully guard your information. Do not keep a written list of passwords, and use passwords that are difficult to figure out (rather than something simple like your phone number).

How Do I know if Someone is Using my Personal Information?

Many victims of identity theft are not aware of the problem until they are refused credit or receive a bill for purchases they did not make. There are a few ways to catch identity theft early on:

- Request your credit report from one or all of the three major credit reporting companies (Experian, TransUnion, and Equifax). Review the reports carefully to assure you are aware of and agree with the status on all accounts. Make sure there are no accounts you don’t know about listed there. And check all recent credit inquiries. Companies from which you have not asked for an account should not be making inquiries. This is a sure sign that someone is out there using your name and information.

- When you review your credit report, immediately contact the reporting company and your creditor about any errors. Make sure individual account information is accurate and up-to-date, and be very persistent in getting errors corrected. You may have to provide documentation for corrections, and you will most likely have to contact the companies several times before the corrections show up in your report.

- Review your account statements immediately when your receive them. Be sure you are aware and approve of all transactions. Check to be sure recent payments are reflected. Make sure they have the correct address. If you find errors on bank or credit card statements, contact the company immediately and continue to communicate with them until the corrections are reflected in your statements.

What if I Am Already a Victim of Identity Theft?

If you think someone else is using your identity or personal financial information inappropriately, contact the nearest office of the U.S. Department of Justice. Contact your creditors to alert them to the fraud. Also inform your bank of the activity and secure their agreement to help protect your information. You may want to revisit the names of people authorized to access your personal financial information and limit it to essential parties only.

Find out as much as you can about the accounts, purchases, and applications the identity thief has made using your name. Then contact those companies directly and immediately to make sure they close the accounts and notify law enforcement when they become aware of any additional transactions.



Ella

Abhishek Agarwal asked:


l information to carry out a crime under a false identity.

In 2003, the Federal Trade Commission said that reports of identity theft were up 33% from the year before, that they were aware of over 200,000 cases of identity theft in 2003. States with the most reported cases of identity theft were Arizona, Nevada, California, Texas, and Florida. And for almost three quarters of the fraud cases reported, the use of victims’ personal information was used for credit card, phone or utility, or bank fraud. They also found that, on average, the misuse of victims’ personal information lasted from three to six months and resulted in a total loss of about $5 billion to victims, plus over 300 million hours of personal time resolving the problems once discovered.

The 2003 FTC Survey reported over $50 billion in losses to business as a result of identity theft. They also reported that, in that year, each victim spent from $500 to $1200 and from 30 to 60 personal hours to have their credit problems resolved. Unfortunately, there is little hope that this trend will decrease in the near future. Identity theft seems to be getting easier, not harder, and the criminals are learning how to hide their crimes from victims longer and to hide their person from law enforcement altogether.

Unfortunately, there is no single database in the U.S. covering identity theft cases, and the Committee suspects that the number of crimes are vastly underreported. Classifying these crimes as identity theft varies from state to state and from police department to police department. The 2003 study revealed that 60% of victims of identity theft had not reported the crime to their police department! Only one in five had even reported the problem to their credit bureau.

Identity theft crimes are investigated at the federal level by federal agencies like the Secret Service and the FBI. The Department of Justice usually prosecutes the cases through a local U.S. Attorneys’ office. In 2000, U.S. Attorneys reported that they had filed over 2000 cases of identity theft across the country (compare this to the 9 million victims per year). That year, the Secret Service made over 3000 arrests, and average actual loses to victims in cases that were closed equaled over $46,000 each. The FBI reported 1425 convictions for identity theft, over a thousand of those for bank fraud. The Postal Inspection Service made a little over 1700 arrests in 2000. Even the IRS reported actual and suspected cases of identity theft in questionable tax returns in 2000, estimating that they had received around 150 thousand fraudulent returns and fraudulent claims for more than $750 million in refunds. Today, the federal government recognizes that identity theft is the fastest-growing financial crime in America.

One reason for the apparently low proportion of prosecutions and convictions for identity theft has been the government’s inability to define the specific crimes. In 1998, Congress passed the first law addressing identity theft, the Identity Theft and Assumption Deterrence Act, making identity theft a named federal crime and making it a little easier to prosecute. The Act made the Federal Trade Commission responsible for receipt of complaints and public education about identity theft.

The Identity Theft Penalty Enhancement Act of 2004 established penalties for aggravated identity theft, including those instances where identity theft was used to commit more serious crimes. The Fair and Accurate Credit Transactions Act of 2003 amended the Fair Credit Reporting Act to address identity theft and related consumer issues, making it possible for victims to work with creditors and credit bureaus to remove negative information due to identity theft in their credit report. The Internet False Identification Act of 2000 amended the older False Identification Crime Control Act of 1982 to encompass computer-aided false identity crimes. Violators face fines and/or imprisonment for producing or transferring false identification documents.

Experts encourage people to be proactive in taking steps to prevent and discover identity theft. Clearly, keeping it from happening in the first place is far less stressful than trying to resolve issues after identity theft crimes are committed. Here are a few of the things you can do to protect your personal financial information from identity theft criminals:

- Secure your personal information at all times. Don’t leave lists of account numbers unlocked, and don’t share your user IDs or passwords with ANYone. Maintain as much control over your personal financial information as you can.

- Don’t throw mail away if in contains any personal information, including your full name and address. Shred these documents before putting them in the garbage.

- Educate yourself about the techniques and tactics used in identity theft and protect yourself accordingly.

- Don’t share personal account information with anyone, including co-workers, friends, and roommates. Unless they are also responsible for paying your bills, they have no reason to have this information. And don’t give them your passwords without a very good reason. If you do share your passwords, change them as soon as possible.

- Shred unwanted and pre-approved credit applications, and have your name removed from those mailing lists.

- Be careful when you make purchases online to use only secure servers and to carefully guard your information. Do not keep a written list of passwords, and use passwords that are difficult to figure out (rather than something simple like your phone number).



Timothy