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Identity Theft
How it Happens
Identity theft can occur in a number of different ways. If you know what to look
for and how it happens, you can self-detect identity theft before it happens, minimizing losses. Here are some common scenarios
to watch out for:
What identity thieves can do
Using everyday items such as your driver’s license or Social Security number
to assume your identity, a skilled thief can:
- Open new bank accounts, and write bad checks.
- Establish new credit card accounts and not pay the bills
- Obtain personal or car loans.
- Get cash advances.
- Set up cellular phones or utility services and run up bills.
- Change your credit card mailing address and charge on your existing accounts.
- Obtain employment.
- Rent an apartment, but avoid the payments,
and get evicted
How identity thieves do it
Identity theft can occur in a number of different ways. But if you know what to look
for and how it happens, you can minimize your overall risk. Here are some common scenarios to watch out for:
- Lost/stolen wallet or checkbook
The most commonly reported source
of information used to commit fraud is a lost or stolen wallet or checkbook. Stolen wallets and checkbooks usually contain
a number of credit and debit cards, in addition to other personal documentation. Using these items, a thief can get enough
information to obtain credit under the victim’s name, or sell the information to an organized crime ring.
- Dumpster diving
Thieves
rummage through trash cans for pieces of non-shredded personal information that they can use or sell.
- Mail theft
Crooks search mailboxes for pre-approved credit offers,
bank statements, tax forms, or convenience checks. They also look for credit card payment envelopes that have been left for
postal carrier pick-up.
- Inside sources
Half of all identity fraud is committed by friends,
family members, relatives, employees, and live-in caregivers with access to privileged information. Info such as personnel
records, payroll information, insurance files, account numbers, or sales records can be great help to any identity thief.
- Imposters
Many have fallen victim to identity theft by individuals
who fraudulently posed as someone who had a legitimate or legal reason to access the victim’s personal information (e.g.,
a landlord or employer asking for background information).
- Documents in the home
Unfortunately, identity thieves can gain
legitimate access into someone’s home and personal information through household work, babysitting, healthcare, friends,
or roommates.
- Online data
Although most identity thefts occur through traditional
methods, such as the ones outlined above, risks still exist online. Be cautious when sending information electronically over
the Web. Account information sent through email, or online chat, can easily be intercepted by thieves.
How To Prevent It:
In many cases involving identity theft, months pass before the victim is aware of
any wrongdoing. Simply monitoring your credit card and account statements on a weekly basis can greatly decrease your identity
theft risk. In fact, the majority of identity theft crimes are self-detected. And according to a recent report by the Better
Business Bureau, accessing accounts online provides earlier identity theft detection compared to monitoring monthly paper
statements and bills.
Use credit and debit cards safely
- Report lost or stolen credit cards immediately.
- Cancel all inactive credit card accounts.
- When using your credit card do not volunteer any personal information.
- If you’ve applied for a credit card and have not received the card in a timely
manner, immediately notify the appropriate financial institution.
- Closely monitor the expiration dates on your credit cards. Contact the credit issuer
if the replacement card is not received prior to your credit card’s expiration date.
- Sign all new credit cards upon receipt.
- Match your credit card receipts against monthly bills to make sure there are no
unauthorized charges.
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- Request electronic versions of bills, statements, and checks instead of paper.
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- Sign up for direct deposit of payroll to prevent paper checks from ending up in
the wrong hands.
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- Shred all personal and financial information such as bills, bank statements, ATM
receipts, and credit card offers before you discard them.
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- Keep your personal documentation (e.g. birth certificate, Social Security card,
etc.) and your bank and credit card records in a secure place.
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- Limit the personal information that you carry in your wallet or purse.
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- Do not give your Social Security number, credit card number, or any bank account
details over the phone unless you have initiated the call and know that the business that you are dealing with is reputable.
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- Do not disclose bank account numbers, credit card account numbers, and other personal
financial data on any Web site or online service location, unless you receive a secured authentication key from your provider.
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- Do not allow mail to go uncollected. Retrieve it promptly.
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- Memorize your numbers and/or passwords. Do not write your Social Security number
or passwords on paper and store them in your wallet or purse.
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- Avoid leaving envelopes containing your credit card payments or checks in your home
mailbox for postal carrier pickup.
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- Prior to discarding a computer, make sure all personal information is deleted from
its hard drive.
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- Take receipts at ATMs, bank counters, or unattended gasoline pumps with you.
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- Use passwords on your credit cards, bank accounts, and phone cards.
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- Review your credit reports annually.
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- Be aware of your surroundings when entering your Personal Identification Number
(PIN) at an ATM.
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- Frequently monitor your account activity, such as balances and withdrawals
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