Identity Theft Information
from the office of State Treasurer Judy Baar Topinka
What is identity theft?
Identity Theft and Identity fraud are terms used to refer to
all types of crime in which someone wrongfully obtains and
uses another person’s personal data in some way that
involved fraud or deception, typically for economic gain.
Your personal data, especially you Social Security number,
your bank account or credit card number, you telephone
calling card number, and other valuable identifying data can
be used by a thief for personal profit at your expense.
Today’s victim spends an average of $1,400 out of pocket in
expenses to resolve ID theft. And 85% of all victims found
out about the crime due to an adverse situation—denied
credit or employment or notification by police, collection
agencies or credit card companies.
The average victim spends between three and six months
attempting to resolve the problem and finds charges in
excess of $20,000 inaccurately applied to them.
Who are
victims of identity theft?
According
to the Federal Trade Commission, during the calendar year
2003 there were 516,740 fraud complaints made to their
organization. Of those, 42% were related to ID theft. Also
according to federal statistics, while Illinois ranks 32nd
by state in the number of frauds reported in 2003, it ranks
7th in reports of ID Theft. Anyone can be a
victim of Identity theft, but statistics are broken down
below. The federal government estimates 7-10 million
Americans have been or currently are victims of ID theft.
·
28% of all victims were in their 30s.
·
25% of all victims were between the ages of
18-29.
·
21% of all victims were in their 40s.
·
13% of all victims were in their 50s.
·
10% of all victims were over 60.
·
3% of all victims were under 18.
Red Flags
used by many con artists
·
High pressure sales tactics.
·
The offer sounds “too good to be true.”
·
A salesman requests a credit card number for
something other than a purchase.
·
There is an offer to send someone to pick up
the money, or asks the money be sent via overnight courier.
·
You are told something is free but you must
pay to get it.
·
You are told an investment has “no risk.”
·
The seller is unwilling to provide written
information or references.
·
A suggestion that purchases should be based
solely on trust rather than on a written contract.
How Identity
Theft occurs
Skilled identity thieves may use a variety of methods, both
low and high tech, to gain access to your data. Here are
some of the ways imposters can get your personal information
and take over your identity.
How Identity Thieves get your personal information:
·
They steal wallets and purses containing your
identification, credit and bank cards.
·
They steal your mail, including your bank and
credit card statements, pre-approved credit offers,
telephone calling cares and tax information.
·
They complete a “change of address form” to
divert your mail to another location.
·
They rummage through your trash, or the trash
of businesses, for personal data in practice known as
“dumpster diving.”
·
They fraudulently obtain your credit report by
posing as a landlord, an employer or someone else who may
have a legitimate need for “a legal right to” the
information.
·
They get your business or personnel records at
work.
·
They find personal information in your home.
·
They use personal information you share on the
Internet.
·
They buy your personal information from
“inside” sources. For example, an identity thief may pay a
store employee for information about you that appears on an
application for goods, services or credit.
Warning
Signs for Older Adults
In order to protect elderly loved ones from becoming victims
of fraud, you should keep the following warning signs in
mind. Older adults may be targets for fraud if:
·
They are receiving frequent, unsolicited calls
from telemarketers who offer prizes, investments or solicit
funds.
·
They are receiving lots of direct mail pieces
claiming that they have won free prizes, contests or trips.
·
They are making large payments to unfamiliar,
out-of-state companies.
·
They are sending payments via overnight
couriers rather than the U.S. Postal Service. Fraudulent
companies do this in order to avoid being investigated by
U.S. Postal Inspectors.
·
They are receiving lots of free gifts, such as
pens, pencils, costume jewelry, or other worthless goods
from entering sweepstakes or prize promotions.
Types of
Identity Theft
In 2003, 32% of ID Thefts in Illinois were credit card
related; 25% utilities; 14% bank fraud; 11% employment
related; 9% government document or benefits related; 24%
were other various types of fraud; and 8% were attempted
frauds that failed either due to consumer diligence or
lender verification processes.
Credit Card Fraud:
·
New accounts opened in your name. This is the
most common misuse of victims’ information.
·
Unauthorized charges on existing accounts.
Telecommunications Fraud
·
New wireless telecommunications
equipment/service (cell phones) in your name.
·
New land line telephone service in your name.
·
New utilities (electric, cable, etc.)
·
Unauthorized charges to existing
telecommunications/utility accounts.
Bank Fraud
Fraud on your checking and/or savings accounts broken down
as follows:
·
Fraudulent checks written on existing
accounts.
·
New accounts opened in your name.
·
Unauthorized electronic withdrawals from your
accounts.
Employment Fraud
Identity thieves use personal information to gain
employment.
How can I
minimize my risk?
You can minimize your risk of being a target of Identity
theft by managing personal information cautiously and with
awareness of how Identity theft can happen. Here are some
helpful tips to guard against Identity theft:
·
Before your reveal any personal information,
find out how it will be used and whether it will be shared
with others.
·
Pay attention to billing cycles. Follow up
with creditors if bills do not arrive on time. A missing
credit card bill could mean an identity thief has taken over
your credit card account and changed your billing address to
cover their tracks.
·
Guard your mail from theft. Deposit outgoing
mail at your local post office. Promptly remove mail from
your mailbox after it ahs been delivered. If you are
planning on being away from home call the U.S. Postal
Service at (800) 275-8777 to request a hold. The Postal
Service will hold your mail at your local post office until
you can pick it up.
·
Put passwords on credit card, bank and phone
accounts. Avoid using easily available information like
your mother’s maiden name, your birth date, the last four
digits of your Social Security Number (SSN) or your phone
number, or a series of consecutive numbers.
·
Minimize the identification information and
the number of cards you carry to what you will actually
need. Do not carry your Social Security card in your purse
or wallet. Make copies of the front and backs of all items
carried in the wallet for an easily accessed inventory in
case a wallet is lost or stolen.
·
Do not give our personal information on the
phone, through the mail or over the Internet unless you have
initiated the contact or know whom you are dealing with.
Identity thieves may pose as representatives of banks,
Internet service providers and even government agencies to
get you to reveal your SSN, financial account numbers, etc.
Legitimate organizations with which you do business have the
information and will not ask you for it.
·
Keep items with personal information in a safe
place. Shred documents or credit card offers before you
throw them away.
And to limit the number of unwanted calls to your home
seeking personal information, register with the National Do
Not Call Registry. The National Do Not Call Registry was
created by the federal government to allow citizens to stop
getting unwanted telemarketing calls. Monitored by the
Federal Trade Commission, the registry compiles consumers’
telephone numbers and sends out a listing, mandating that
telemarketers avoid calling those who have made the
request. You may register online at
www.donotcall.gov or call toll-free (888) 382-1222.
Registration is free.
Phishing
Don’t fall hook, line and sinker
What is phishing?
Phishing (pronounced “fishing”) is a new form of internet
piracy that is exactly as it sounds. Thieves are using this
form of identity theft in order to phish for your personal
and financial information. More specifically, they are
looking for account numbers, Social Security numbers and
other confidential information that could be used to empty
your checking account and run huge tabs on your credit card.
At best, you may be the victim of one isolated incident, but
chances are you could become the victim of a very successful
identity theft scam.
Fraudsters with all of your information have the capability
to make illegitimate purchases, open new accounts in your
name, apply for new credit cards and commit other crimes.
Damage can be done to your financial history and personal
reputation that can take years to fix. The best defense is
a solid offense—know how phishing works so that you can
protect yourself and stop this crime.
How does phishing work?
·
Typically phishing begins with an e-mail that
has the appearance of being sent from a reputable company.
In some cases, that company could be your financial
institution, a government agency or a federal financial
institution regulatory agency.
·
Many e-mails begin by using some fictitious
reason to gain account information. For example, consumers
might be warned that their accounts will be closed or
suspended if they do not provide the information requested.
It could also warn of a serious problem that requires the
consumer’s immediate attention, or that the consumer’s
information has been lost due to a computer problem. It
will then encourage the recipient to click on a button that
will take them to the institution’s webpage.
·
The webpage has the capability to look very
realistic. In fact, it could be the company’s legitimate
website. In those cases, a pop-up window will appear for
the purpose of harvesting your information. In any
instance, the purpose is to obtain your information through
your cooperation.
How can I protect myself?
1. Never provide any personal
information in response to these types of requests.
Unfortunately, requests by internet phisherman can look very
real, and they might even use icons to denote that a website
is a secure site; however, you should never provide any
information for an unsolicited request.
2. If you are questioning the authenticity of a
request, contact the institution yourself. Phone numbers
and websites should be listed on your monthly statement or
in the phonebook. In any case, you should initiate contact
with information you have verified.
3. Never provide a password or verify account
information over the phone or in response to any unsolicited
request. The First National Bank of Jonesboro will never
ask you to verify account information online.
4. Always take time to review your monthly
account statements. Also, use our Telebanc system
(833-9999) to check account activity periodically. This
will ensure that no suspicious activity is taking place on
your account.
What should
I do if I am a victim of Identity Theft?
·
First thing your should do is contact the
three major credit bureaus in the U.S. and place a credit
fraud alert on your SSN.
Equifax
1-800-525-6285
P.O. Box 740250
Atlanta, GA 30374
Experian
1-888-397-3742
P.O. Box 1017
Allen, TX 75013
TransUnion
1-800-680-7289
P.O. Box 6790
Fullerton, CA 92634
·
Contact any/all financial institutions and/or
credit card accounts that may be affected.
·
Contact the Social Security Administration
regarding missing Social Security cards.
·
Notify the Secretary of State’s office
regarding the loss of a driver’s license.
·
Call your local law enforcement agency and
report the crime.
·
Contact friends and family and make them aware
of the scam too.
It is wise to order a copy of your credit report from each
of the three major credit bureaus every year. Make sure it
is accurate and includes only those activities you have
authorized. The law allows credit bureaus to charge a fee
for a copy of your credit report.
·
If you feel someone is using your SSN, report
it to the fraud hotline (800) 269-0271
·
If you feel someone has filed false federal
income tax returns, or other tax fraud, call toll-free:
(800) 829-0433
·
If you have been a victim of Identity Theft
and need assistance filing your corrected returns, call the
IRS Taxpayer Advocates Office, toll-free: (877) 777-4778
·
To contact the Identity Theft Hotline by
phone, call toll-free (877-438-4338. To contact via mail,
send to:
Identity Theft Clearinghouse, FTC
600 Pennsylvania Avenue, NW
Washington, DC 20580
