The Growing Crime of Identity Theft

What is Identity Theft?

Identity theft occurs when someone uses bits and pieces of information about another individual - usually including the Social Security number - to represent him or herself as that person for fraudulent purposes. For example, the defrauding person may obtain credit cards or loans in someone else's name and then not pay the bills. Or worse, commit a crime using the victim's name.

While the victim is not liable for the bills accumulated by the imposters, they may have months or years of anxiety and expense trying to regain their financial health and restore their good credit history. The U. S. General Accounting Office estimates that there are 400,000 victims of identity theft each year in this country and that number is increasing. There are several reasons for this rise. The credit industry has made it very easy to obtain credit and credit grantors do not adequately check the identities of applicants before granting credit. Pre-approved credit offers sent by mail are an easy target for thieves.

It is also very easy for criminals to obtain the information needed to steal an identity, in particular Social Security numbers. Sloppy business practices such a throwing out unshredded documents or allowing dishonest employees access to computer files and personnel records are wide-spread. There are even web sites that sell people's Social Security numbers. Take a look at www.infoseekers.com, for example.

Identity theft doesn't get the attention from law enforcement that violent crime receives. Consequently, an increasing number or criminals, including organized crime rings are moving into this area. Identity thieves are rarely apprehended and convicted, and even if they are, sentencing is light.

How Does an Identity Thief Get Your Personal Information?

The old-fashioned way to get another person's identification used to be stealing wallets. Today the techniques are far more sophisticated. Several more common methods can be included on the list.

The criminal may pose as an employer, loan officer or landlord and order a copy of your credit report that will contain all the information he or she needs. The perpetrator may "shoulder surf" at an ATM machine or pay phone in order to capture PIN numbers. This activity may even occur from a distance using binoculars. Your mail may be stolen from your mailbox. "Dumpster diving" happens when the thief goes through a business's trash looking for unshredded receipts. An "insider" with access to a company's computer may steal private information about customers or employees. More often than you would think, a family member, roommate or trusted caregiver may steal from someone whose personal effects are available to them.

Preventive Steps to Minimize Your Exposure to Identity Theft

Do not carry extra credit cards, your Social Security card, birth certificate or passport in your wallet or purse except when you will need it. Remove your name from the marketing lists at the three credit reporting bureaus to reduce the number of pre-approved offers of credit you receive. Shred or tear into small pieces any offers that do come to you.

Have a security fraud alert added to your credit files at the three major credit bureaus. This two-sentence statement mandates that before any new credit account can be opened, the credit grantor must call your designated phone number to verify that the account is legitimate.

Install a locked mailbox or use a post office box. Mail any envelopes containing checks at the post office. Reduce the number of credit cards you actively use to a bare minimum. Carry just one or two. Cancel all unused accounts. Even if you don't use accounts they remain in your credit report complete with account numbers that can be used by thieves.

Keep a list of all credit cards, account numbers, expiration dates and phone numbers of their customer service and fraud departments in a secure place so you can immediately contact your creditors if the cards are stolen. Do the same with your bank accounts. Never give your credit card number or other personal information over the phone unless you have a trusted business relationship with the company and you initiated the call. Beware of fake stories about winning a prize if you identify yourself with your credit card.

Order your credit report from each of the three credit bureaus at least once a year to check for inaccuracies and fraudulent use of your information. Always take credit receipts with you; never toss them in a public trash container.

When creating passwords and PINS don't choose part of your Social Security number, your birth date or any other easily discovered choice. Memorize your passwords and PINS. Never carry them with you. Protect your Social Security number. Never give it out unless absolutely necessary. Don't print it on your checks or let merchants hand write it on your check. Once a year order your Social Security Earnings and Benefits Statement. Carefully review all credit card statements and phone bills for any unauthorized use. Shred or tear into small pieces any pre-approved credit offers. Store your cancelled checks in a safe place.

If You Are A Victim of identity Theft

Act immediately. Report the crime to the police. Call all your credit card issuers; follow up in writing. Pay particular attention to creditors for any accounts that have been tampered with or opened fraudulently. Phone the fraud units of the three credit reporting companies.

Report Fraud Order Credit Report Web Site
Equifax: 800-525-6285 800-685-1111 www.equifax.com
Experian: 888-397-3742 888-397-3742 www.experian.com
Trans Union: 800-680-7289 800-916-8800 www.tuc.com

Notify your bank of the theft. Keep a log of all conversations, including dates and names. Send all correspondence by certified mail. Keep copies of all documents. The Privacy Rights Clearinghouse, www.privacyrights.org, phone 619-298-3396, has lots of good detailed advice on dealing with identity theft.

Legal Status of Identity Theft

In 1998 Congress passed and the President signed the Identity Theft and Assumption Deterrence Act. Identity theft is now a federal felony, with violations investigated by federal law enforcement agencies including the US Secret Service. This law allows for restitution for victims. The Federal Trade Commission is the federal clearinghouse for consumer complaints about identity theft. The toll-free number to call is 877-FTC-HELP or use the complaint form at www.ftc.gov.

Sources: The Privacy Rights Clearing House, www.privacyrights.org, Identity Theft, How It Happens, Its Impact on Victims, and Legislative Solutions
The Privacy Rights Clearing House, www.privacyrights.org, Fact Sheet #17: Coping with Identity Theft: What To Do When an Imposter Strikes

Groundhog Day, Valentines Day and Leap Year present opportunities for creative fun with younger children. For little expense adults can teach legend, friendship and science to little ones while tapping their enthusiasm for life. A publication, Building Blocks, recently came to our office.

Groundhog Day is a good time to teach about the way different animals live well as to introduce the legend of the groundhog seeing his shadow. You can spread a sheet or blanket between two chairs, making a groundhog tunnel. Have your children crawl through the tunnel while you hold a flashlight "sun". If the sun is "on" the groundhog can pop back into the tunnel; if the sun is "off" the groundhog can stay out. Or you could make groundhog snacks using peanut butter, honey, milk and dried fruit.

Valentines Day is a great chance to teach the value of friends. Children can make special gifts for friends, decorate a Valentine mailbox and listen to their own hearts with a stethoscope. The publication offers a game in which various faces are drawn on heart-shaped pieces of paper and the children learn about feelings.

The nursery rhyme, Jack Be Nimble, illustrates Leap Year. Have the children jump over an unlit candle in a candleholder. Or make a mobile of 29 hearts, removing a heart each day until one remains. Ask the children what they are going to do with their extra day.

Adapted from BUILDING BLOCKS, Elgin, IL 60123

High Performance Fabrics

Fabrics that wick moisture away from the body have special appeal for today's active lifestyles. Two interesting members of this new generation of fabrics are NS2D-No Sweat, Stay Dry Denim-and CoolMax Alta.

NS2D is an 80 percent cotton and 29 percent polyolefin denim. This blend of fibers transfers moisture, including sweat, away from the body, producing jeans and denim apparel that look good and stay dry no matter how active the wearer.

CoolMax Alta is an all polyester fabric that wicks moisture, is comfortable in hot humid conditions, has good performance strength and low pilling characteristics. This latter attribute, which means it will look good after repeated washing and wearing, makes it a perfect choice for high performance, base-layer garments, such as underwear for athletes, and single layer spring/summer garments such as long sleeved T-shirts. Fabric futurists predict it will soon be used in high-performance sportswear, such as golf shirts and tennis wear.

Adapted from Cleanliness Facts, July/August 1999