IDENTITY THEFT

By Janys Barnidge

[Note: This article originally appeared, in two installments, in the April and May 2001 issues of TPD’s CopNotes. The article appears here in its entirety for online reading.]

Most of you have probably read about the latest identity theft scheme involving a man who allegedly used the Internet to steal millions from celebrities, including such people as Steven Spielberg, Ted Turner, and Oprah Winfrey. "Tallahassee is not isolated from this type of theft and fraud, and the number of local cases being reported each year has steadily increased," according to Sgt. Phil Kiracofe of the Tallahassee Police Department’s Financial Crimes Unit.

One of the fastest growing white-collar crimes in the United States is identity theft, affecting more than 750,000 people each year. The numbers could be higher since many victims do not know how to report the crime, while others do not realize that it has happened. Identity theft is the criminal misappropriation of another person’s identification and credit information to commit fraud or theft.

Everyday business transactions require you to share personal information, including your Social Security number (SSN). The use of the SSN has changed since it was created 65 years ago as a means to track a worker’s earnings so that Social Security benefits could be calculated. Because of the uniqueness of each person’s nine-digit number, the SSN has become the main identifier of choice for employers, government agencies, banks, educational institutions, and even consumers.

The Identity Theft and Assumption Deterrence Act of 1998 made identity theft a federal crime. Various law enforcement agencies investigate violations of this Act that may also involve violations of other statutes. Along with many other states, Florida has passed an identity theft law. Florida Statutes 817.568 -Criminal use of personal identification information- makes the offense of fraudulent use of personal identification information a felony of the third degree.

A consumer’s liability for credit card losses is generally limited to $50 for each card. In the past, the creditor or financial institution was viewed as the "victim," but that has changed. Victims spend hundreds of hours and sometimes thousands of dollars proving that charges are fraudulent and cleaning up their credit records.

HOW CREDIT IDENTITY THEFT OCCURS:

• "Dumpster diving"—Criminals go through your garbage cans or a communal dumpster and obtain copies of your personal documents.
• Mail theft—Pre-approved applications for credit cards, newly issued credit cards, bill payments, and checks are stolen from your mailbox. Because of the transient nature of college students and unsolicited pre-approved credit cards, this is a heavily targeted group for mail theft.
• Wallets and purses—You may lose your wallet or purse or have it stolen.
• "Insider access"—An employee of a business may use or sell the personal information. If someone is employed to work in your house, this also allows access to personal information.
• Internet—Personal identification information is available in databases on the World Wide Web. Does your family have a home page on the Internet?

Once a thief has your personal information, there are many ways that it can be used. An identity thief may use your name to: open a bank account and write bad checks; file for bankruptcy to avoid paying debts incurred while using your name; take out an auto loan; establish phone or wireless service; or even change the mailing address on your credit card account.

HOW TO PROTECT AGAINST IDENTITY THEFT:

• Clean out your wallet or purse. Don’t carry your Social Security card, birth certificate, passport, or credit cards you don’t use.
• Don’t have your Social Security number printed on your checks and don’t let a clerk write it on the check.
• Stand up for your privacy when an unwarranted request is made for your SSN. Ask to use other types of identifiers when possible.
• Always take credit card, debit card, and ATM receipts with you. When they can be discarded, shred them at home, not in a public place.
• If you purchase products over the Internet, be sure that it is a secure site that encrypts the personal information.
• Be cautious about where you leave personal information in your house, especially if you have roommates, employ outside help or have work done in your house.
• Shred all documents containing personal information.
• Don’t give out personal information on the phone or over the Internet unless you know whom you are dealing with.
• Follow up with creditors if your bills don’t arrive on time. A missing credit card bill could mean that your billing address has been changed. It doesn’t hurt to make sure before too much time elapses.
• Check your credit. Order a copy of your credit report from Experian (888-397-3742), TransUnion (800-916-8800) or Equifax (800-685-111) at least once a year. They can charge up to $8.50 for a copy.

• Shield your PIN numbers when using an ATM or placing a credit card call.
• Consider how much personal information you include when posting individual home pages, family genealogies, and resumes. Your SSN should never be posted but those pages may be packed with phone numbers, birthplaces, birth dates, and mom’s maiden name. This helps an identity thief get closer to that Social Security number.

By keeping abreast of your personal finances and following the suggestions listed above, you may be able to prevent or minimize losses due to the destruction caused by identity theft.

[Part II.]

IF YOU ARE A VICTIM

Identity fraud is a serious problem, and there are long-term ramifications for the victim. The Identity Theft and Assumption Deterrence Act of 1998 tasked the Federal Trade Commission with creating and maintaining an Identity Theft Consumer Complaint Center. The FTC provides information to assist victims and to refer their complaints to other appropriate government agencies for further action.

If you have been a victim of identity theft, file a complaint with the FTC by contacting the Identity Theft Hotline by telephone: toll-free 1-877-438-4338; TDD: 202-326-2502; by mail: Identity Theft Clearinghouse, Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580; or online: www.consumer.gov/idtheft

Next, choose the following tips that are appropriate for your situation:

• Report the crime to the police immediately. If you know where your identification was stolen, that would be the jurisdiction you would have to report it to. Be sure you are given a case number.

• Report all stolen cards to the issuers immediately and get replacement cards with new account numbers. Ask that the old accounts be processed as "account closed at consumer’s request" so that a "lost or stolen" notation cannot be interpreted as blaming you. Follow up with written notification.
• Notify your bank if your checks were stolen and close your account. Stop payment on your checks. Ask your bank to notify the check verification service with which it does business.
• It is a crime for someone to use your SSN to establish credit or open new accounts. Call the SSA Fraud Hotline at 1-800-269-0271. Also, request a copy of your Earnings and Benefits Statement to verify reported earnings by calling 1-800-772-1213.
• As of September 13, 1997, Florida residents can protect personal information in their driver license and motor vehicle records from disclosure. There are exceptions as specified by law. You can view these exceptions and download a copy of the Request to Withhold Disclosure of Personal Information form at

www.hsmv.state.fl.us/ddl/dppa.html

• Call the fraud units of the three major credit reporting agencies [Experian 888-397-3742; Equifax 800-525-6285; and Trans Union 800-680-7289] and request that a security/fraud alert be placed on your file. Request that creditors call you before opening any new accounts or changing existing ones. Add a victim’s statement to your report and find out how long the fraud alert is posted on your account and extend it if possible. Follow up with a written letter.
• To protect your rights under the Fair Credit Reporting Act, call the credit bureau and request a copy of your report. Check the section of the report that lists "inquiries" and request that "inquiries" from companies that opened the fraudulent accounts be removed. Follow up each conversation with a letter detailing the exact circumstances and action requested. Include copies (not originals) of documents that support your position. Send your letter by certified mail and request a return receipt. Keep copies of your dispute letter and any enclosures. Don’t forget to follow up in a few months by requesting a new copy of your report so you can verify that the corrections were made.
• Request new account numbers, ATM cards, and PINs from your financial institution and creditors, as needed.
• Contact the creditors--credit card companies, phone companies, etc. Speak to someone in the fraud department. You must follow up with a letter because this is the consumer protection procedure that the Fair Credit Act spells out for resolving errors for credit card statements.
• If an identity thief stole your mail or falsified a change-of-address form, that is a crime. Report it to your local postal inspector.
• If someone has filed for bankruptcy using your name, you will need to write to the U.S. Trustee in the region where the bankruptcy was filed. A list of regions can be found at www.usdoj.gov/ust
• Keep a log of all conversations, including dates and names. Send correspondence by certified mail. Keep copies of all letters and documents and be sure to have your police report case number with this documentation.
• Write to your state and federal legislators to demand stronger privacy protection and fraud assistance.
• Remember that you can prohibit use of information in your credit bureau report from being used to determine if you qualify for offers not initiated by you by calling toll-free 1-888-567-8688.
• As a victim, you may experience feelings of blame. Seek help from a victim’s rights organization or seek counseling.

As you can see from the above list of tips, solvency for identity theft is time consuming and emotionally depleting. Tallahassee Police Department’s Financial Crimes Unit encourages you to take preventative measures so that identity theft doesn’t happen to you.

If you do become a victim, remember to take action immediately.

Sources: Federal Trade Commission www.consumer.gov/idtheft/

U.S. Department of Justice www.usdoj.gov/criminal/fraud/idtheft.html

FL Dept. of Highway Safety and Motor Vehicle www.hsmv.state.fl.us/