Identity Theft – Don’t Be a Victim!
Moments after stepping out of the cab, Rachel rushed through the hotel lobby entrance, eager to put what had been a terribly exhausting day behind her. Flight delays due to weather caused her LAX-MDW-BWI trip to take nearly eleven hours to complete. All she could think about was kicking off her shoes to soothe her aching feet and soaking them in the warm, soothing bathwater.
The line at the front desk was thankfully short. An employee caught Rachel’s eye and motioned for her to come forward; she gave him her reservation information and then took out her American Express card to pay. As she turned away from her to verify her authenticity, Rachel’s eyes searched the hall for her. They’ve updated everything since I was last here, she thought. Her concentration, clouded with fatigue, was now on the mission-style tables, chairs, and lamps that had replaced the heavy wooden furniture that had once filled the foyer. “Here is her card and her room key, ma’am,” the employee interrupted minutes later. Quickly, Rachel put the card back in her wallet, picked up her bags, and hurried to her room.
Rachel was a victim of identity theft that night, but she didn’t know it at the time. If she had been paying attention to what her employee was doing instead of studying the lobby, she might have noticed him trading cards for her. At the very least, she would have seen that the card he was given under her room key was not his.
Identity theft is an explosive problem that has increased exponentially in this technological age. Particularly since the early 1990s, thieves have been taking advantage of what we would consider everyday transactions: writing a check at the grocery store, ordering merchandise over the Internet, applying for a credit card, using your cell phone, and more. . Each transaction requires you to share personal information: your bank account and credit card numbers; your income, your Social Security Number (SSN); and your name, address and telephone numbers.
An identity thief will steal some of your personal information and take it without your knowledge to commit fraud or theft. One of the most common methods is when the identity thief uses her personal information to open a credit card account in her name.
The Federal Trade Commission is the arm of the federal government charged with overseeing the problem of identity theft. A special hotline number (1-877-IDTHEFT) has been created for consumers to call and place their information in a database that can be accessed by other law enforcement agencies and private entities, including companies for which you can file a complaint. Additionally, an Identity Theft Affidavit can be completed and delivered to the business, a form you can use to alert businesses when a new account has been opened in your name. This affidavit is available online for consumers.
Identity thieves can obtain your personal information in several ways:
* They steal wallets and purses that contain your ID and credit and bank cards.
* They steal your mail, including your bank and credit card statements, pre-approved credit offers, phone cards, and tax information.
* Fill out a “change of address form” to reroute their mail to another location.
* They rummage through your trash, or your company’s trash, looking for personal data in a practice known as “trash dumping.”
* Fraudulently obtain your credit report by posing as a landlord, employer, or anyone else who may have a legitimate need for and legal right to the information.
* Obtain your business or personal records at work.
* They find personal information in your house.
* They use personal information that you share on the Internet.
* They buy your personal information from “inside” sources. For example, an identity thief may pay a store clerk for information about you that appears on an application for goods, services, or credit.
Identity thieves will then take the personal information they have obtained about you and use it in several different ways:
* They will call your credit card issuer and, posing as you, ask you to change the mailing address on your credit card account. The imposter then racks up charges on your account. Since your invoices are being sent to the new address, it may take some time before you realize there is a problem.
* They open a new credit card account, using their name, date of birth and SSN. When the credit card is sued and the bills are not paid, the delinquent account is reported on your credit report.
* Establish telephone or wireless service in your name.
* They open a bank account in your name and write bad checks on that account.
* They file bankruptcy in your name to avoid paying off debts they have incurred in your name, or to avoid eviction.
* They forge checks or debit cards and drain your bank account.
* They buy cars by taking out car loans in your name.
Fortunately for Rachel, American Express covered her losses. Although she did not find out about her theft until she arrived at her home in California, American Express suspended her account when various suspicious charges surfaced and they were unable to contact her to verify the charges. Her fraud department left a message on her phone’s answering machine telling her to call them, and when she did, Rachel was notified that someone else was using her card. When she explained that she had the card in her possession, she went through her purse and found a card for someone else.
Visa, MasterCard and American Express absorb the cost of fraud as long as they are notified by the consumer [certain restrictions may apply – check with your card issuer for specific details]. If Rachel had used a debit card, the story could have been very different. Unlike a credit card, a debit card has a direct impact on your bank account, which means you’ll have to absorb the loss.
So everything’s fine with Rachel, right? Sure, American Express delivered a new card with a new account number for Rachel to use on her next trip, but the problem might well have continued and deepened if she hadn’t followed three more steps recommended by the Federal Trade Commission:
First, contact the fraud departments of each of the three major credit bureaus. Tell them that you are the victim of identity theft. Request that a “fraud alert” be placed in your file, as well as a statement from the victim requesting that creditors call you before opening new accounts or changing your existing accounts. This can help prevent an identity thief from opening additional accounts in your name.
At the same time, request copies of your credit reports from the credit bureaus. Credit bureaus must give you a free copy of your report if your report is inaccurate due to fraud, and you request it in writing. Please review your reports carefully to ensure that no additional fraudulent accounts have been opened in your name or unauthorized changes have been made to your existing accounts.
Second, Contact creditors about any accounts that have been tampered with or opened fraudulently. Creditors may include credit card companies, telephone and other utility companies, and banks and other lenders.
Third, If possible, file a report with your local police or with the police in the community where the identity theft occurred. Get a copy of the police report in case the bank, credit card company, or others need proof of the crime. Even if the police can’t catch the thief, the report can be helpful when dealing with creditors.
In short, identity theft is a problem that generates billions of dollars a year for businesses and consumers. As a result, higher interest rates and the increased cost of goods and services are passed on to consumers. So don’t become a victim: protect yourself from identity theft by staying vigilant, especially when a third party is handling their personal information.
