How Identity Theft Occurs++
According to the Federal Trade Commission, as many as 9 million Americans suffer identity theft each year. However, the Privacy Rights Clearinghouse reports that this is a decrease from 10.1 million annual cases of identity theft in 2003.
Identity theft happens when a thief gains access to personal data such as a credit card number or Social Security number. They then use this information to commit fraud or other crimes.
Video: Dramatically Lower the Incidence of Identity Theft
The FTC says that have many ways of stealing your information, including:
Dumpster diving. Thieves go through your trash in search of bills or other records with personal information.
Skimming. While processing your credit card, they use a special storage device to steal the numbers.
Stealing wallets and purses. This gives thieves easy access to credit cards, Social Security cards, and other sensitive information.
Switching your address. By completing a change-of-address form at the post office, thieves can divert your bills and your information.
Pretexting. Thieves contact businesses with your information, such as banks or telephone companies, and use false pretenses to obtain your information.
Phishing. Through online spam or pop-up messages, thieves can steal your personal data while pretending to be legitimate businesses. Other phishing scams include keystroke software that logs your sensitive information – so be aware that you are not safe from identity theft online.
Preventing Identity Theft
Identity theft can have devastating effects on your financial life and credit history. The Pennsylvania Higher Education Assistance Agency says that identity theft can take an average of 14 months to be discovered, by which time your credit could very well be ruined by thieves. You could also end up owing amounts of money from fraudulent accounts opened in your name. That’s why it’s vital to keep your personal information secret.
The PHEAA offers the following tips on how to do this:
Sign your credit cards immediately after receiving them.
Carry only necessary credit cards and identification. Keep others in a secure location.
Do not attach your personal identification number or Social Security number to any credit or debit cards.
Check your credit report annually.
Don’t just dispose of financially sensitive documents – shred them.
Before providing any sensitive information, confirm the identity of the person asking it and be sure to verify that it’s necessary to provide this information. According to the Social Security Administration, providing your Social Security number is strictly voluntary.
Don’t respond to any unsolicited credit-card offers. If a thief steals these from your mailbox or redirects your mail, they can easily steal important data.
If any personal documents or credit cards go missing, immediately report the loss.
Video: Take Steps to Prevent Identity Theft
My Identity’s Been Stolen – What Now?
Monitoring your credit and financial statements on a regular basis will help you quickly discover if your identity’s been stolen. You may also find out in unpleasant ways: collection agencies begin calling, you’re turned down for a loan, or you receive something in the mail about an account you never opened or an apartment you haven’t leased.
The Privacy Rights Clearinghouse offers state-specific resources for victims of identity theft, as well as resources for Canadian victims of such theft.
If you suspect you’ve been a victim, be sure to notify the three major credit bureaus:
Equifax
P.O. Box 740250, Atlanta, GA 30374-0241.
To report fraud: Call (888) 766-0008 and write to address above.
TDD: (800) 255-0056
Web: www.equifax.com
Experian
PO Box 9532
Allen TX, 75013
To report fraud: Call (888) EXPERIAN (888-397-3742) and write to address above. The Privacy Rights Clearinghouse recommends you write rather than call.
TDD: Use relay to fraud number above.
Web: www.experian.com/fraud
TransUnion
P.O. Box 6790, Fullerton, CA 92834-6790.
To report fraud: (800) 680-7289 and write to address above.
TDD: (877) 553-7803
E-mail (fraud victims only): fvad@transunion.com
Web: www.transunion.com