Identity Theft 101

Everyone needs to understand the basics of identity theft and how it impacts each one of us. This commentary contains definitions that explain the 'who, what, when, and why' of stolen identities. Use this information to increase your understanding of threats that exist by identity theft.

Keycards and Identity Theft

A widely held concern of identity theft experts has to do with the information that is stored on keycards collected on vacation. Many believe there is a connection between their hotel room keycard & their bank account. Is it Fact, or Fiction?

The 7 Types of Identity Theft

When you think about identity theft, you think about credit cards and bank accounts. But there are many areas of identity theft that can hit you, not just your wallet. Find out about the additional forms of identity theft, & what you can do to reduce your risks.
My Wallet/Purse Was Stolen! Now What?
Many cases of ID theft start with a lost wallet or purse. Taking the proper actions when this happens immediately can help you minimize the damage because time is working against you. Find out what you can do now.

College Identity Theft: A Growing Problem

College students are easy target and at an extremely high risk for identity theft. To protect themselves, they need to understand what identity theft is, where they are at risk, and what steps to take if they suspect identity theft. Read this article to learn more.

How It Happens: Identity Theft 101

Identity theft always takes victims by surprise. Knowing how it happens will not prevent the surprise, but it will help you to be cautious about how you handle personal information.
What is Identity Theft?
Why criminals steal identities, who those thieves are, and how the crime is committed is all explained in this article. Learn how to remain constantly vigilant about protecting their identities.

10 Tips to Prevent Identity Theft

10 short tips for minimize identity theft.
How to Minimize Identity Theft

8 simple steps for minimizing identity theft, a must read!  

Criminal Identity Theft
You don't have to do something wrong to run into the legal system. The Identity Theft Resource Center reported 56% of the identity theft victims they talked with reported the Identity thieves used their information when they were arrested, booked, or arraigned. One third said there are criminal convictions in their name as a result of this, while still more found warrants in their name.
Financial Identity Theft
Identity theft can have profound and long-term effects on your life, but when someone digs into your wallet for your bank or credit card, it can send you in a tailspin.
Data Breach - The Real Identity Theft Risk
The harsh truth is that it's impossible to stop identity theft. Because when our personal information is not under our control, we are at risk by every company that keeps a record of it.

Identity Theft Glossary
The crimes, protection and recovery methods, and prevention strategies of identity theft often come with some hard to interpret terms. Don't get lost in the slang. Use these glossary items to understand the terminology surrounding identity theft.
Gray Market Goods
Gray market goods are items that are purchased by identity thieves, usually using fraudulent credit accounts, and then resold for a profit because the sell the goods at a low price because they have no cost involved in the purchase.
Nigerian Letter Scams
The Nigerian Letter Scam is one that's been around for a while. The introduction of the Internet has changed the way the Nigerian Letter Scam is delivered, but it's still the same scam.
Synthetic Identity Fraud
Synthetic identity fraud occurs when an identity thief takes your personal information and combines it with someone else’s information to for the purpose of using it to gain access to information or money based on your credit history.
Identity Theft Red Flags and Address Discrepancies Under the FACTA Act
The Identity Theft Red Flags and Address Discrepancies Under the Fair and Accurate Transactions Act of 2003 is designed to hold businesses more accountable in their management of consumer information through guidelines and legislation that address technology and procedural issues affecting how that information is handled.
The Fair Credit Reporting Act of 1970
The Fair Credit Reporting Act (FCRA) of 1970 is a piece of legislation that governs the collection, dissemination, and use of consumer credit information.
Identity Theft Enforcement and Restitution Act
The Identity Theft Enforcement and Restitution Act can help consumers recoup the costs associated with having their identity stolen. Currently, this act is still pending approval of the President.
Credit Reporting Agencies
Credit reporting agencies, also called credit bureaus, collect credit and personal information about consumers.
The Fair and Accurate Credit Transactions Act
The Fair and Accurate Credit Transactions Act was passed in 2004 to help consumers protect their credit histories from inaccurate credit transaction reporting.
Credit Monitoring Services
The dramatic rise in identity theft has prompted an explosion in the number of credit monitoring services advertising, but what exactly is a credit monitoring service?
Credit Fraud Alert
A fraud alert is used to alert potential lenders that your identity may have been compromised by identity theft.
Credit Report Freeze
A credit freeze, or credit report freeze, locks down a consumer's credit report so no new credit accounts can be activated without the proper authorization from the consumer.
Web Page Spoofing
Web page spoofing is just one type of deception that hackers use to trick people into providing personal information that can be used for the purposes of identity theft.
Email Spoofing
Email spoofing is a technique that hackers use to send fraudulent emails and is often used as a tool to collect information need for identity theft activities.
Spoofing
Spoofing is a broad-ranging term that essentially means to pretend to be something or someone that you're not. It is, however, much more complicated.
Vishing
Vishing uses social engineering and phishing techniques to steal people's identities using Voice over Internet Protocol (VoIP) phone lines.
Social Engineering
The practice of deceiving someone, either in person, over the phone, or using a computer.  With the express purpose of breaching some level of security either personal or professional.
Business Identity Theft
Business identities are just as endangered as personal identities. Thieves steal business identities to use both for direct financial gain and also as tools to steal individual identities.
Parent or Family /Child Identity Theft
Parent or Family member/child identity theft is committed by a parent or family member against a child. It's a common occurrence in which parents or family member use their children's identity to secure credit cards, utility accounts, and other even leases or loans because their own credit is insufficient to open such accounts.
Identity Theft
Identity theft is a crime in which a person's confidential, personal information is stolen for the purpose of criminal use.

Keycards and Identity Theft
"...My Friend's Brother's Girlfriend's Niece Said..."
An urban legend tells the story of a friend of a friend went to a hotel, turned in his/her keycard, and became a victim of identity theft. Apparently, the desk-clerk gets the credit card information off the room key and goes on a shopping trip… or something like that.
Two sides to every story.
One side is that the story is just that – an urban legend. Hotels don't link your credit card to your room key.
But there's another side to the story. About.com likes information to be "sourced", however some sources for this article wished to remain anonymous. Reasons primarily revolved around their continued employment. Your Guide prefers to err on the side of caution and provide you with the information obtained while investigating the topic. At the very least, you will be able to ask direct and specific questions if you ever need to.
What's really on that card?
Since a hotel keycard now looks like a credit card (height, width, thickness, ¼ inch magnetic stripe on the back) it's easy to make the leap that it holds the same kind of information. However, it is only a storage medium, like a CD, DVD, or flash drive. It only holds the information that is encoded on the magnetic stripe.
Identity thieves can use any magnetic-striped medium to create a bogus credit/debit card, just as you can put any kind of information on a flash-drive. All they need is a computer and a magnetic strip "encoder", both of which are available at many retail electronics stores.
When it comes to hotel keycards, the manager of a local hotel (who wishes to remain anonymous) says to watch how the card is encoded by the desk clerk. If the keycard must be swiped through a machine separate from the registration computer, it is programmed through the security system, which only deals with room numbers, dates and times.
If the encoder is connected directly to the registration computer, it is possible to put any information on the card that is in that computer, including payment information. If you can use your keycard at the hotel to bill something to your room, the information is probably linked somewhere in the system.
From the hotel's perspective, there is no reason to put payment information on a room’s keycard, and there are plenty of legal reasons not to do so.
A source of confusion.
Many people believe that the ID card they were given on a vacation cruise has far more information on it, including banking information.
Keycards look pretty much the same, with the exception of graphics printed on the card. Cruise ships are no exception, and they use the same technology for their passenger identification cards. This may be a source of confusion for anyone who has taken a cruise. Standard procedure for one cruise line is to issue the card when you first board the ship, and take your picture. Whenever you leave the ship, you are required to present your card for re-boarding. The security staff puts the card into a slot (like the credit-card slot on a gas pump) and the computer brings up your photo from the ship's file. This is how they track whether or not someone is still on the ship. This also allows the cruise line to give authorities a recent picture of you, if you should go missing during one of your jaunts ashore.
The same card gives access to your stateroom, and may be used for purchases on the ship.
It's easy to understand why someone would think the cruise-ship keycard holds more information than a hotel keycard. But a security representative with a major cruise line (again, wishing to remain anonymous) says the only information on the card is an identification number. What comes up on the security screen on the ship is a file on the ships computer, which matches that identification number.
In other words, a keycard is useless to an identity thief unless they put information on the magnetic stripe themselves. So it's fine to keep your keycards as souvenirs of your trip. If there's any doubt in your mind, though, it won't hurt a thing to shred your keycards when you're done with them. Most home and office shredders have slots designed to destroy credit cards and even CDs.
The 7 Types of Identity Theft
There are several "types" of ID theft. Each one affects certain areas of our lives, and has specific things to keep in mind when trying to deal with it.
Financial Identity Theft
When people hear the words "identity theft" they usually think of credit reports and bank accounts. We have all heard about data breaches like TJ Maxx (47.5 million credit cards) and Heartland Payment Systems (130 million credit cards) regularly. Our faith in our financial institutions is shaken. Some of us are contemplating keeping our money in the mattress again.
 
Medical Identity Theft
The World Health Organization said this is “the information crime that can kill you.” (Read the full publication here (PDF).) It’s not just the most dangerous and could be deadly, form of identity theft, it’s also one of the hardest to fix.
If you’re a victim of medical ID theft, you have your work cut out for you and will need an attorney to navigate this problem.
Criminal Identity Theft
This one may be as bad as medical ID theft. The easiest way to find out if this has happened to you is to get caught speeding or when the police show up at your door with a warrant for your arrest. The officer who stops you will run your license and registration. If there are warrants out for your arrest they will give you a pretty set of matching silver bracelets, and free public transportation.
For an example, watch this video from CBS4 in Jacksonville, FL.
When dealing with this, expect a lot of skepticism. Police are told “It wasn’t me” or “I didn’t do it “almost every day.
Driver’s License Identity Theft
This may be the easiest form of ID theft to commit. Your purse/wallet gets stolen, and your driver’s license is sold to someone who looks like you. Then it is easy for them to get other forms of ID in your name. This form of ID theft spreads to others, especially criminal identity theft.
Social Security Identity Theft
There are millions of people working in America who don’t want to pay taxes or have the document to get a job. It may be an illegal immigrant, a deadbeat parent, or a paroled criminal trying to shake their past. Your SSN may be the most valuable piece of personal information a thief can steal.
While the Social Security Administration isn’t required to tell you about all these jobs, the IRS will want you to pay the taxes. This can be a tough battle, too. For a non-government agency, the IRS has unbelievable power. Expect a lot of hoops to jump through here. Although it’s gotten easier over the past few years, the process is still time consuming.
Synthetic Identity Theft
This is the “latest thing” in the ID theft world. The thief will take parts of information from many victims and combine it to create a new identity. The new identity isn’t any specific person, but all the victims can be affected when it’s used. It will show up in the areas above, so look to those sections for additional information.
Synthetic identity theft has also been used to describe any act in which the criminal attempts to convince someone they are another person, real or fictional. This careful wording is no doubt reactionary to the US Supreme Court ruling that an illegal immigrant has not committed a crime unless he/she knew that the SSN they were using belonged to an actual citizen.
Child Identity Theft
When dealing with your own identity theft, be sure to look into your children’s. Our kids are a big target for ID theft. An 8-year-old won’t be looking at their credit for at least eight more years, probably longer. Sadly, the thief in these cases is almost always a family member or close friend. This means the parents will usually not want to press charges and the ID thief counts on that.

My Wallet/Purse Was Stolen! Now What?
It happens every day. Now it's happened to you. You've lost your driver's license, credit cards, ATM card, Social Security card, library card, and all the pictures of your kids. You're worried about identity theft. What do you do?
Contact your bank immediately - An ATM/debit card often has a VISA/MC logo, so it can be processed like a credit card, but the money comes out of your checking account. You can dispute fraudulent withdrawals with your bank, but you only get the money back if their investigation goes your way - and that can take 60 days or longer.
If you carried a check or deposit slip in your wallet/purse, open a new account and move your money. Talk with the bank manager. Let them know what has happened. You'll find they can help a lot.
Contact your credit card companies next. Credit card fraud is a common form of identity theft. The cards that were stolen will get used quickly, usually for a few large purchases, or several small ones. Most credit card companies are wise to this, and watch for "unusual buying patterns," but don't count on that. Let them know as soon as you hang up with your bank.
Make a report with your local police department. Get the report number, and a hard copy of the report. Every company you work with to fix an identity theft issue will want a copy of this, so make several. Always keep the original.
(Local police don't make a big deal about identity theft because it's a single victim, and nobody was "hurt" by the crime. Don't let that bother you. The important thing is to get the report.)
Put out a fraud alert. Just call one of these credit-reporting agencies. When you place a fraud alert, the agency you contacted reports it to the others.
•    Experian - 1-888-397-3742 (TDD 1-800-972-0322)
•    Equifax - 1-888-766-0008 (TDD 1-800-255-0056 and request connection to Auto Disclosure Line at 1-800-685-1111)
•    Transunion - 1-800-680-7289 (TDD 1-877-553-7803)
Contact your insurance agent. Most homeowner's policies have some sort of identity theft coverage. This would be a great time to find out what it covers. Don't be surprised if it's not much, though. The Federal Trade Commission published a brochure in 2008. It warned consumers to be careful what they buy. They said most identity theft products don't really do anything you can't do yourself for free.
Contact the Federal Trade Commission (1-877-IDTHEFT). The FTC collects information about identity theft for studies and analysis. They may send you a copy of Take Charge: Fighting Back against Identity Theft, a booklet to help victims recover. If you don't want to wait, you can read it online here.
File a fraud affidavit. The FTC suggests you fill this out. You can print a copy here. Like the police report, you will want several copies of the completed form. Always keep the original. (Note: The FTC doesn't require this, but some businesses will want it notarized.)
Get a new driver's license. See if they will give you a new number instead of a duplicate. They may not want to, but there's a big difference.
If someone commits a crime and has your driver's license, they will give that to the cops when they're arrested. Let's say it was a DUI. They get released with a court date, and they never go back. Why would they? The cops aren't going to be looking for them - they gave the cops your Drives License! A bench warrant gets issued with your name on it, but you won't know about it until you're pulled over for a busted headlight or speeding.
When they give you a new license number, the old number usually becomes invalid. Even if it doesn't, though, now your name and address has two different license numbers. Police will have to look closer if they stop you.
Change your locks. The thief knows your address now. Did you have a key in your wallet or purse? If so, a home security system is a smart investment. Let your neighbors know what's happened, and ask them if they will keep a lookout for strangers around your door.
Call your other card issuers. Call the library if you had a library card. Call Blockbusters if you had a movie rental card. Call your car rental company, campus security, Victoria's Secret, everybody who gave you some sort of credit or ID card...even those shopper/savings cards. Identity thieves have run up all sorts of bills in their victim's names. They are creative, and it's impossible to know how your information will get misused.
Call the social security administration. They won't do anything, but it's a good idea to have them make a note that your information was lost. Their number is 800-772-1213 (TDD 800-325-0778) you may also want to take a look at this information on the SSA website.
Call your lawyer. Identity theft almost always creates legal problems. Talk to your lawyer about what's happened, what you've done, and see if they have any other advice. Some states have laws and agencies to help identity theft victims, a lawyer can point you in the right direction. If you don't know a lawyer, try the state attorney general's office.
Consider a credit monitoring service. Remember that most identity theft happens long after the information was lost / stolen - sometimes several years can pass before anything creeps up. Fraud alerts only last three months. Credit monitoring is a great way to keep tabs on things.
College Identity Theft: A Growing Problem
As new and returning students goes off to college, they're usually concerned with such things as where to live, where classes are located on campus, how to stretch a tight budget, financial aid, buying books, and a host of other factors important to their day to day life. Most students aren't concerned about is identity theft. Most students think this is an issue which won't affect them; after all, students don’t usually have much money or credit, so they think, "Why would anyone want to steal my identity?"
The truth is that identity theft is not just about stealing someone’s money or assets – it's about stealing their name and reputation. Identity theft is the fastest-growing crime in the United States, costing Americans over $50 billion in fraudulent charges and affecting some 8 million people annually. Unfortunately, college students are a prime target due to careless habits and a rather surprising indifference.
What is Identity Theft and How Does It Occur?
Identity theft is the act of someone else taking information which personally identities someone else - a social security number, driver’s license, birth certificate, etc. The thief then uses this information to establish credit accounts, loans, apply for jobs, or commit other fraudulent acts in the victim’s name, or to use the victim’s currently established accounts to buy merchandise or services. Unfortunately, the person responsible for these charges is the victim himself and it can often take years to clear up the resulting problems.
The consequences of identity theft are dire. In most cases, the victim can be left with a large amount of debt and may be denied a job or fired from a job if the company does periodical back ground checks, loans for a house or car, and have their credit rating damaged irreparably. This is not a good way to start what should be the beginning of a new life after receiving a college education.
Why College Students are Particularly Vulnerable
In order for a thief to steal someone’s identity, they must first obtain the necessary information which allows them to “become” someone else, at least in the eyes of lending institutions and other financial companies. How easy this task is depends on how vigilant a person is about protecting their personal information.
More than half of all college students receive multiple pre-approved credit offers monthly. Those mass-mailed forms, usually partially filled out with the recipient’s information such as name, address, and other personal data is an excellent opportunity to steal a person’s identity.
If the recipient is not interested in the offer and simply throws away the form, it is one of the most common documents used by identity thieves. By picking the offer out of the trash can, the thief can then fill in the rest of the blanks and send it in or simply call the toll free phone number provided on the form, allowing them near instant access to one aspect of the victim's identity.
Another manner in which identity theft occurs is when thieves get their hands on personal banking account information, such as a checking or savings account statement. Anyone who does not balance their account is at risk of incurring fraudulent charges, simply because they do not keep track of what charges are legitimate. Most often, the thief steals by withdrawing money in small increments – not enough to stand out as a glaring error to the casual observer but enough to build up to a large amount over time.
Another danger to college students is their Social Security Number. Many college courses require a student to use their Social Security Number to log in to websites used to post homework assignments and other course communications. The university may also use that number as an identifying number in the administration office.
It is very easy to forget to exercise caution when using a Social Security Number, particularly when it is used so often. Careless computer security or evens something as simple as a criminal watching a student enter the number, allows a thief can quickly and easily gain access to the Social Security Number, which is the key to obtaining additional information about an individual.
Computers and laptops also pose a threat that many students don't think about. Many students use a laptop every day in class to take notes and organize coursework documents. But what if that computer is stolen? What would a thief find inside?
Most students in today’s world use their computers to access online banking, pay bills, order merchandise, and communicate in just about every other aspect of their lives, too. If personal and account information is stored on the hard drive, the thief has instant access to very information that makes it possible for them to assume the student's identity.
Of course, students also shouldn't overlook one of the most common ways to steal someone’s identity - stealing a wallet, purse, or backpack. This can even occur in the student's dorm room, particularly if parties or unfamiliar guests are common, and they usually are in college dorms. Students should exercise the same security at home as in any unfamiliar environment.
How to Stay Safe from Identity Theft
The best way to deal with the possibility of identity theft is to avoid it by employing safe practices in everyday life. Here are some tips and best practices to prevent identity theft:
•    Shred all important documents in a cross cut shredder, such as bank statements, credit card offers, and any pieces of paper which contain an account number or social security number. Remember prescription drug containers, too, as they usually have an account number and other personal information printed on the label.
•    Don’t let mail pile up and lay around where anyone could gain access to it. Be sure that anything which goes in the trash bin does not contain any usable information – shred or tear documents into small pieces if necessary.
•    Always log out of secure sites, such as online banking, before exiting the program. Also ensure your web browser does not save log in and password information associated with sensitive sites.
•    Never store personal information or username and password combinations on your computer’s hard drive. If you must write them down somewhere, make sure the document is stored in a safe location, such as lock box. But it's best to memorize them no written record that could be compromised.
•    Use secure passwords which using a long string of numbers and letters in a random combination is best to avoid hacking. Avoid composing passwords of obvious numbers such as date of birth, phone numbers, anniversaries, or addresses.
•    Ensure that the web sites you use for buying merchandise or services are secure. Oftentimes, the URL will be preceded by https:// and it will bear the logo indicating a Secure Sockets Layer (SSL) certificate.
•    Be wary of emails which are “phishing” for information, or trying to get you to respond to what looks like a legitimate site but redirects you to a thief’s site where your personal information will be recorded. Learn how to spot these phishing emails. Banks will never send you an e-mail requesting you to verify your information.
•    Be very careful in giving out your social security number. There are few instances when it is the only number you can use to access or open an account (even at the university). Use a driver’s license to prove identity and do not carry your social security card with you; instead keep in a safe place like a safety deposit box. The same applies to a student ID card, particularly if it contains your social security number.
What to Do If You Suspect You Have Become a Victim of Identity Theft
Not just an inconvenience or a detriment to your credit rating, identity theft is classified as a federal crime. According to the Identity Theft and Assumption Deterrence Act of 1998, it is a federal crime if someone "knowingly transfers or uses, without lawful authority, a means of identification of another person with the intent to commit, or to aid or abet, any unlawful activity that constitutes a violation of the Federal law, or that constitutes a felony under any applicable State or local law."
If you suspect that you're identity has been compromised, the first step is to notify all your financial institutions that may have been affected. Ensure that all accounts are closed immediately and ask that any new accounts be flagged for possible fraudulent charges in the future.
Next, notify your local law enforcement office of the crime. They will be able to advise you of further steps as well as begin an investigation.
Also contact the three credit reporting bureaus and notify them of the theft of your identity. They can put a fraud alert in your file with a date so that charges occurring after this date will not negatively affect your credit rating.
The time spent attending college is, for most students, one of the best and most memorable periods in their life. Make sure it is not memorable, however, because of the trauma and suffering which result from the theft of your identity. Be vigilant about protecting your information and never assume that such a crime cannot happen to you. Chances are, there is already someone you know who has had it happen to them.
How It Happens: Identity Theft 101
Finding out your identity has been stolen is a shock. Everyone finds out the hard way. You may apply for a loan only to be turned down because your credit – which you thought was immaculate – is in shambles. Or you receive a past-due notice from the IRS for thousands of dollars on wages you never earned.
It doesn’t matter how you find out. When you realize your identity has been stolen you’ll experience every emotion known to man. It starts with shock and quickly graduates to anger but before it’s over you’ll feel downright defeated and probably ashamed, too.
There’s no reason to feel ashamed. But most people do, because they have no idea how their identity was compromised. For example, a news anchor in Nashville, TN learned his identity had been grabbed more than a decade before he found out about the crime. And the only reason he found out was because the illegal immigrants that were using his name and Social Security Number fell on hard times and couldn’t pay the bills they had created using the false information.
Imagine someone using your identity for more than 10 years without your knowledge. It’s a tough fact to learn, but it happens more often than any of us would like to think.
It’s More Than Simple Credit Card Fraud
The problem with identity theft is that in most cases, it takes a while to learn your identity has been stolen. True identity theft is when someone steals your personal information for the purpose of creating or taking over accounts that belong to you or even to become ‘you’ – is a crime that can take some time to complete. Thieves must first acquire the right information about you, and then the accounts have to be changed or established.
What you hear called identity theft most often is actually credit card fraud. That’s when someone steals account information with the purpose of using your credit accounts for fraudulent charges. Credit fraud might show up on your credit card statement within hours of the actual theft happening. But with identity theft, it can take 30 days to 10 years or longer for evidence that your identity has been compromised to become evident.
That’s because an identity theft has a different purpose in mind. The thief isn’t looking for a quick buck. Instead he or she is looking for a long-term pay-off on what can sometimes be a time consuming investment.
The long-term advantage to identity theft can be pretty impressive. A thief gathers identifying information about you which can then be used to secure mortgages, open new credit accounts, set up utility accounts, and even land jobs. Most often, this type of identity theft is used to supply illegal immigrants with new, legal identities in the US. And since most immigrants really want to be honest, upstanding citizens, they’ll use your information responsibly.
It’s usually some unexpected problem that outs the theft – loss of a job, a misunderstanding of tax laws, legal problems, or even a tragedy that leaves unpaid bills in your name. But the methods used to gather your information are the same as those used for credit card fraud, which is why the two crimes are usually lumped under the heading ‘Identity Theft.’
How Identity Theft Happens
At the core, identity theft and credit card fraud are both results of the same actions. It starts when a criminal gains access to your personal information. That information includes your full name, date of birth, Social Security Number, address, telephone number, and the names of your family including parents and children.
In today’s world, a lot of that information can be gained with little more than digging through your trash and even engaging you in conversation in the grocery store line. For example, identity thieves will go through your trash and gather credit card statements, bank statements, and personal correspondence. This documents usually contain nearly everything they need.
To get the last few bits of information, a conversation at the grocery store or even a telephone call to your home usually works. These criminals are great con artists. They know what questions to ask and how to phrase those questions to get you to spill your guts. Before you know it, you’ve told someone you don’t even know your whole life story.
After that, all that’s left is to begin the process of creating another you on paper. They create new accounts, order copies of your Social Security card and birth certificate, and secure a new job in another state. And it’s done. Someone else who looks nothing like in you in real life is your exact duplicate in the paper and cyber world.
Of course, that’s not the only way to get your information. Phishing emails, spoofed web sites, telephone surveys, and even old-fashioned breaking and entering or purse/wallet snatching are also methods that identity thieves use. Even your medical records and employee records at your place of employment put you at risk.
Most concerning is the places that aren’t obvious where your identity can be snatched without notice. Remember the news anchor from Nashville? After a lot of investigating on his own, he eventually learned that his identity had been stolen when he applied for a private pilot’s license.
Others have learned that family or friends sold their identifying information. And many never figure out what happened. The one consistent factor in every case of identity theft is that it happens when you least expect it, usually in a place where you feel safe.
There is No Safe Place
Ultimately, there is no such thing as safety when it comes to personally identifying information. Any situation where you’re required to provide personal information and any circumstance where someone else knows enough about you to steal your identity is a potential opening for a thief. And there is just no way to protect yourself from every single possibility that might arise.
So, what do you do? Do you just give up? Or do you get belligerent about who you provide information to? Neither. Somewhere in the middle of that is where you should be.
For now, protecting your identity is about using caution in the right places. And since you can never be sure which places are wrong, it’s also about constantly being aware of your identity and how it changes over time. Monitoring your credit reports is one way to do that.
Security companies are working to produce new, better protected methods of identifying yourself. And the government is building legislation to help in that area, too. But we’re not there yet. Technologies still have a long way to go and legislation isn’t keeping up with the changing nature of identity theft.
In the meantime, you’re stuck in the middle. Use every caution you can use. But also be prepared in case the worst happens. If it does happen to you, realize it’s not your fault. Identity theft is a difficult crime to prevent given the identity-centric nature of our world today.
What is Identity Theft?
If you have a television and actually get a channel that broadcasts news once or twice a day, it’s a pretty good bet that you’ve heard about identity theft. For that matter, a television isn’t a necessary requirement to know that identity theft exists. People talk about it every day. But what exactly is identity theft?
Identity theft is often confused with other crimes that lead to identity theft. As an example, a thief caught stealing credit card numbers isn’t necessarily committing identity theft. He’s committing a financial crime. Identity theft happens when a criminal steals your personal information for the express purpose of pretending to be you.
Why Steal Your Identity?
Why would anyone want to be you? If you’re anything like me, even the thought that someone would want to take over your life might make you smile and shake your head. “Go ahead,” I would tell them. “It’s all yours.” Except I don’t really mean it.
Even if you did, what an identity thief wants from you isn’t really your life; it’s just everything that tells others that your life belongs to you. Your Social Security number is one good example. A person who can’t get a Social Security number will sometimes steal one that belongs to someone else, so they can have the benefits of having a Social Security number.
Another reason that identities are stolen is to gain access to your financial accounts. In fact, this is one of the most common reasons that a criminal is trying to become you. Your power lies in your good name, and if a thief can gain control of your good name, then they also control that power.
The power that I mean is purchasing power. The ability to own a home, hold a job, and apply for credit. These are what identity thieves are after.
Who Steals Identities?
Identity thieves are not the pasty-faced, Pop-Tart eating nerds that you might picture them to be. Next time you go out to the grocery store, look around at the people who are also there. Any one of them could be an identity thief. Young, old, rich, poor, any nationality—there are no restraints that say one type of person is more likely to be an identity thief than another.
It doesn’t matter that the doctor you saw last week had the best nurses in the county. One of those nurses could be an identity thief who steals personal information from patient records and then sells that information to another criminal, who then resells it to illegal aliens. Even a single mom of three that just moved in across the street could be an identity thief.
No group of people is more or less likely to be an identity thief. Criminals steal identities for profit, and anyone in the right place with access to the right information might find the lure of extra cash too much to turn down.
How are Identities Stolen?
Above all else, identity theft is a crime of opportunity. A criminal, or even someone who is not yet a criminal, sees an opportunity, and takes advantage of it. Even criminals who work as part of identity theft rings depend on opportunity to gain access to the information they need.
In fact, you might be surprised to learn that the majority of identity theft doesn’t happen online. Really. More identity theft takes place in the ‘real world’ than online. And it often happens in ways that you would never expect.
One of the most common methods of identity theft is dumpster diving. Dumpster diving is when someone goes through your trash looking for identifying information. And you don’t have to use a dumpster. The trash can that you put out at the corner the night before pickup is just as vulnerable as a public dumpster.
Many other threats exist in the real world, too. Shoulder surfing is one that might surprise you. When a criminal is shoulder surfing, they’re watching over your shoulder, waiting to capture your personal information when you’re most unaware. Many people put themselves at risk using a cell phone. A shoulder surfer will snap pictures or capture video of buttons that you key in while you’re using the phone.
Always Remain Vigilant
It’s so difficult to know who might be an identity thief, where they might strike, or what method they may use to capture your personal information that you must always be vigilant about protecting yourself. In public and even in your own home you need to develop safe living practices that help you protect yourself.
The most important safety practice you can develop is to always be vigilant about your surroundings and the risk that you create for yourself. Think about the ways that you could be compromising your information – throwing out junk mail, leaving your mail in the mailbox for days at a time, and using your phone for credit card purchases while you’re standing in line at the grocery store. And then change those habits.
Only by being aware of the risks that are associated with identity theft, and being conscious of how you contribute to those risks can you begin to protect yourself. As the old adage goes, “knowing is half the battle.”
Ten Tips to Prevent Identity Theft
Protect Your Personal Information
How much information does someone really need to know in order to impersonate you to a 3rd-party? Your name? Birth date? Address? Armed with easily found information such as this, and maybe a couple other key pieces of information such as the high school you went to, your dog’s name or your mother’s maiden name, an individual might be able to access your existing accounts or establish new loans or credit in your name.
Recently, reports of security breaches in which customer data and personally identifiable information (PII) were somehow compromised seem to appear almost daily. Choicepoint, Lexis Nexis, DSW Shoe Warehouse, Ralph Lauren / HSBC, Bank of America and more have all reported massive amounts of compromised or ill-gotten customer information just in the past couple of months.
However, most identity theft or compromises of PII, including a couple of the major breaches mentioned above, have nothing to do with the Internet or lax computer or network security. Unpatched operating system vulnerabilities or hacking wizardy are involved in a relatively small number of the total cases. The Choicepoint breach resulted from poor processes to identify that the business asking for consumer information had a legitimate reason. The Bank of America breach resulted from a data backup tape being lost in transit.
Information can be pulled from your trash can. Waiters can swipe or simply write down your credit card number when you make a purchase at a restaurant. There are a variety of laws related to securing customer information including Sarbanes-Oxley, HIPAA, GLBA and others. Congress is currently investigating the breaches at Choicepoint and Lexis Nexis and considering further legislation aimed at allegedly protecting customer data. But, social engineering and good, old-fashioned theft still pose a larger threat than network security and it is up to you to monitor and protect your personal information and your credit.
Below are some tips you can follow to help secure and protect your personally identifiable information and ensure that your identity or your credit have not been compromised.
1. Watch for shoulder-surfers. When entering a PIN number or a credit card number in an ATM machine, at a phone booth, or even on a computer at work, be aware of who is nearby and make sure nobody is peering over your shoulder to make a note of the keys you’re pressing.
2. Require photo ID verification. Rather than signing the backs of your credit cards, you can write “See Photo ID”. In many cases, store clerks don’t even look at the signature block on the credit card, and a thief could just as easily use your credit card to make online or telephone purchases which don’t require signature verification, but for those rare cases where they do actually verify the signature, you may get some added security by directing them to also make sure you match the picture on the photo ID.
3. Shred everything. One of the ways that would-be identity thieves acquire information is through “dumpster-diving”, aka trash-picking. If you are throwing out bills and credit card statements, old credit card or ATM receipts, medical statements or even junk-mail solicitations for credit cards and mortgages, you may be leaving too much information laying about. Buy a personal shredder and shred all papers with PII on them before disposing of them.
4. Destroy digital data. When you sell, trade or otherwise dispose of a computer system, or a hard drive, or even a recordable CD, DVD or backup tape, you need to take extra steps to ensure the data is completely, utterly and irrevocably destroyed. Simply deleting the data or reformatting the hard drive is nowhere near enough. Anyone with a little tech skill can undelete files or recover data from a formatted drive. Use a product like ShredXP to make sure that data on hard drives is completely destroyed. For CD, DVD or tape media you should physically destroy it by breaking or shattering it before disposing of it. There are shredders designed specifically to shred CD / DVD media.
5. Be diligent about checking statements. This actually has two benefits. First, if you are diligent about checking your bank and credit statements each month, you will be aware if one of them doesn’t arrive and that can alert you that perhaps someone stole it from your mailbox or while it was in transit. Second, you can ensure that the charges, purchases or other entries on the statement are legitimate and match up with your records so that you can quickly identify and address any suspicious activity.
6. Pay your bills at the post office. Never leave your paid bills in your mailbox to be sent out. A thief who raids your mailbox would be able to acquire a slew of critical information in one envelope- your name, address, credit account number, your bank information including the routing number and account number from the bottom of the check, and a copy of your signature from your check for forgery purposes just for starters. Drop your bills at the post office or at least in an official U.S. Postal Service drop box to ensure that doesn’t happen.
7. Limit the information on your checks. It may be convenient to have your drivers license number or social security number imprinted on your personal checks to save some time when you write one, but if it falls into the wrong hands it reveals too much information. In fact, some recommend that you only include your first initial in the name space of your check, such as “T. Bradley” rather than writing out “Tony Bradley” so that if someone did get one of your checks they would not know your full name.
8. Analyze your credit report annually. This has always been good advice, but it used to cost money, or you had to first be rejected from receiving credit so that you could get a free copy. Now it is possible to get a free look at your credit report once per year. The big three credit reporting agencies (Equifax, Experian and TransUnion) joined forces to provide free credit reports to consumers. The web site, annualcreditreport.com, is currently available for the Western and Mid-Western states, with the Southern and Eastern states being rolled out later this year. You should review it to make sure the information on it is accurate and also make sure that there aren’t any accounts on there that you aren’t aware of or any other suspicious entries or activity.
9. Protect your Social Security number. I don’t personally believe in Social Security or any attempts to repair or reform it. I have no illusions that it will actually be around to pay me when I retire. But, whether that comes to pass or not, the Social Security Number has become the one thing they had always promised it wouldn’t- a sort of national identification number. It is often suggested that you do not carry your Social Security in your wallet with your drivers license and other identification. For one thing, although they expect it to last your whole life, the Social Security card is issued on very flimsy cardboard that doesn’t hold up well to wear and tear. Aside from that though, knowing your full name, address and full Social Security Number, or even the last 4 digits in many cases, can let a thief assume your identity. You should never use your Social Security Number as any part of a username or password that you establish and you should never divulge it to telephone solicitors or in response to spam or phishing scam emails either.
10. Caveat Emptor. I will offer my apologies in advance, and I mean no offense to smaller businesses just building themselves up or getting established, but I recommend you not do business online with companies you don’t know anything about. You can feel relatively secure doing business online with Amazon.com or BestBuy.com or any web site affiliated with well-known, national or global merchants. But, if you are buying something online you need to have some level of trust that the company you are doing business with is legitimate and that they take the security of your personal information as seriously as you do. When you do make online purchases, read the companies online privacy policy first to ensure you agree with it and make sure you are on a secure or encrypted web site (symbolized by a small padlock at the bottom right of the screen in Internet Explorer).
Criminal Identity Theft
Few people consider the deeper-reaching parts of identity theft. Medical identity theft is terrifying, because if your doctor makes decisions based on false information in a medical file, it can have deadly results. But if an identity thief is caught in an unrelated crime, more often than not they will give your information to law enforcement. Once they are out on bail, they disappear behind the next person's identity.
The criminal fails to appear for the hearing, which results in a bench warrant in the victim's name. The victim, however, may not find out about the warrant until they are (for example) stopped for speeding, or a busted tail light. Once the officer runs the driver's license, the warrant information pops up, and the nightmare begins.
When this has happened to you, your first instinct may be to call your identity theft service (assuming you have one.) Since most identity theft programs are still focused on financial identity theft, you may find they is little they can do to help.
This presents a completely new set of problems for a victim. Most law enforcement agents have heard the objection "It wasn't me!" several times during their career, so they can be less than sympathetic. States have started putting laws in place to help victims, but the process can still be confusing and time-consuming. Even after LEA's are aware of your situation, though, things are seldom smooth.
The Curious Case of Kevin Woehner
Kevin Woehner knew he was a victim of identity theft for years. The criminal had gotten loans for vehicles in Woehner's name, leaving him with the collection headaches. He had gone to the Dade County police several times. He had gotten little help, even though he knew the name of the identity thief – Shawn Labeet. When he finally managed to get his complaint taken and a report filed, his photo was taken with the report, as a means of positive identification.
Labeet was not only an identity thief; he was also involved in gang activity. When he was stopped by police (in a car registered in Woehner's name) he opened fire on the police, injuring 3 and killing one. Within an hour Woehner became national news, and his photo taken for the identity theft report was seen broadcast as the person the police were searching for. Police were very clear on the news, "…this is not a person of interest, this is the suspect in the shootings…."
Woehner called the police as soon as he heard about the shooting to clear things up. Patrols were dispatched to his residence, where he was arrested under a show of force while his family watched, terrified. Although everything was eventually ironed out, the experience is probably not one he cares to repeat.
Migrating Data
Once you're in "The System" it's not easy to get out. Victims of criminal identity theft may find it next to impossible to get their false criminal record cleared up. James Farr in Indiana has dealt with this problem for years, while Larry Joe Hummel moves through the Florida criminal system. Farr has been denied employment due to his criminal past (and present), even after getting a judgment against Hummel for identity theft (which also shows the conviction in the name of James Farr.) Florida has decided "…while it's not best for him, it's best for the general public…."
Criminal databases "talk" with each other, sharing information so other agencies can access it easily. So even if we assume a victim manages to get their information cleared from a local city's police database, it may show back up the next time the city updates their information with a county or state database. In the mean time, they may be arrested again and again over the same warrant.
Unfortunately, there's little anyone can do to prevent this form of identity theft. One way this could come about is a stolen wallet or purse. After going through the headache of replacing your driver's license, you will often find the license number is the same as the stolen one.
And there are very few identity thieves that don't intend on breaking a few laws.
Financial Identity Theft
Who's In Your Wallet?
Say "identity theft" loudly enough in a group of people, and someone will come forward with a story. Statistically speaking, one-in-four Americans have had to deal with identity theft personally or know someone who has. Most of the stories have some dealings with a "financial institution" (bank, credit card company, etc.)
New versus Old
"Existing" accounts are bank/credit accounts you already have a card for, accounts that you personally opened. When your wallet gets stolen, existing accounts are often hit quickly, within a matter of hours. The thief knows as soon as you notice the cards missing, you'll report them and they'll no longer work. More importantly, thieves also know if they use the card after it's reported stolen, they run a higher risk of getting caught.
Banks have had to deal with identity theft for a while now, and they have clear-cut guidelines on how to handle a "hijacked" account. Most often damage is negligible, a few hundred dollars and the inconvenience of wasted time. Sometimes your money is tied up while the bank investigates the problem, but even then, you're only looking at a couple of months.
Credit card companies, too, have dealt with identity theft for several years. The difference between your ATM card that has the VISA logo on it, your VISA credit card is that the ATM card takes money directly out of your personal account. But money spent on the credit card is essentially a loan. So while the identity thief takes your money with an ATM card, they are taking a loan in your name when they use your credit card. In other words, the credit card company is out the money, not you. They've called it "credit card fraud" for a long time, but this is still generally accepted as one of the main forms of identity theft.
Today, there's intricate software that watches your "buying habits", and odd purchases "flag" your account for review. That's why they call you on vacation to make sure it's really you using your card in New Mexico. Opinions on this practice vary. Some people feel it's an invasion of privacy, but most of us are glad "they" are watching our backs.
When an identity thief gets a new account using your information, it goes undetected far longer – often months or even years. Identity thieves have even been known to make payments on fraudulent accounts opened in their victims' name, improving the victim's credit score. Clearing up this mess can be much more time consuming, because the credit card company obviously does not want to write off the account.
Do You Know Where You Live?
If an identity thief wants to get new accounts in your name, they need to intercept the mail. Typically, they will give the address for a vacant property, or someplace they know they will be able to safely receive it. The postal service does their best to keep addresses from being changed fraudulently, but every system has holes. If the creditor has a false address, though, the only way you'll find out is by receiving collection notices and calls. (Collection agencies often search through a credit report to find previous addresses in their efforts to locate the debtor.)
The biggest problem here is the way laws are written. For example, in Take Charge: Fighting Back Against Identity Theft (the official FTC's guide, see More information below) the FTC blankly states that you must
"… send your letter so that it reaches the creditor within 60 days after the first bill containing the error was mailed to you. If an identity thief changed the address on your account and you didn’t receive the bill, your dispute letter still must reach the creditor within 60 days of when the creditor would have mailed the bill. This is one reason it’s essential to keep track of your billing statements, and follow up quickly if your bills don’t arrive on time."
Although most reputable creditors work with identity theft victims, though, keep in mind that they don't have to.
Crossing Over
Victims of other forms of identity theft will often feel the impact in the wallet. For example, a victim of medical identity theft might first find out about the problem when they notice medical collections on their credit report, or receive a bill for medical equipment/services that they never received. A mother may try to get a few hours at Wal-Mart to help make ends meet, only to find out that she already works there. To add insult to injury, the IRS wants the unpaid taxes on her "income" from all those jobs. A DUI conviction on your driver's license will cost you probation fees and court costs, and you may find the state wants that paid off until you resolve your "situation".
Since financial institutions have been dealing directly with the costs of identity theft for so long, you'll find they are the most prepared to help you when you talk with them. It will not be painless, but financial identity theft is one of the easier problems to resolve.
Data Breach - The Real Identity Theft Risk
Data breach is the term used whenever a company "misplaces" your personal information. It doesn't matter if you've been a victim of identity theft or not, the lost information leaves you wide open to become one.
Some of the bigger data breaches have hit headlines, while others manage to stay off the front page. There's no way to know for sure if your information was lost in a specific breach, with few exceptions, until you have become a victim of identity theft. And then, of course, it's too late.
The government has several laws in place that require an organization that loses your information to let you know. This is assuming the organization knows the information has been lost. Sometimes it's a case of the tail wagging the dog. For example, a company may not realize they've had a breach until their clients start being victims of identity theft. That sparks an investigation, and someone in a computer room somewhere finds a months-old log entry that tells him a server was hacked.
Recent Reports of Data Breach
The Educational Credit Management Corp (ECMC) reported 3.3 million records were lost, potentially affecting as much as 5% of all federal student loan borrowers. The information lost was on a "portable media device". Reports are unclear if that meant someone had used a thumb-drive or iPod to steal the information. Borrowers from multiple states could be affected. Information lost included name, birth date, social security numbers, representing over 8 million loans.
St. Peter's Hospital (Albany, NY) learned an employee had been taking information from patient's records and getting credit cards in their names. That employee (now ex-employee) faces multiple charges of identity theft, aggravated identity theft, forgery, and criminal impersonation. St. Peter's did not know how many patients were affected.
Over five-thousand patients in the John Muir Physician's Network are finally being notified that they may be at risk of identity theft. This notification, however, is coming two months after the laptops containing their information were stolen.
AvMed Health Plans in Gainesville, FL lost names, addresses and social security numbers of 208,000 subscribers and their dependents when two laptops were stolen.
The University of El Paso sent out tax forms to 15,000 students with their social security number visible.
Valdasota State University in Georgia had a server breached as far back as November of 2009. 170,000 students are now at risk.
The National Archives and Record Administration lost 250,000 records from the Clinton administration and staff (and White House visitors) when a computer hard drive containing social security numbers was lost.
Lincoln National Corp., a financial services firm, found over 1.2 million clients were exposed through a compromised password.
Netflix is dealing with a class action suit for openly releasing "anonymized" information about more than 100 million subscribers. (Netflix says the information cannot be used to identify individual subscribers, however several researchers have been able to "crack the code" and do exactly that.)
Blue Cross and Blue Shield in Tennessee estimated 220,000 customers were put at risk when 57 computer hard drives were lost. The number was later increased to 998,000.
Even financial powerhouse Citigroup dropped the ball on 600,000 customers when tax documents were sent with social security numbers in the address line.
In all, over 110 million individual records have been compromised since this year started. And that number is a low estimate, because several data breaches that have been reported were unable to determine how many clients were affected.
The point here is that we cannot stop identity theft, because we do not control our personal information. Our employer has it, our utility company has it, our government has it, our bank has it, our insurance provider has it, our schools have it, our doctor has it, even our video store and favorite pizza joint have it.
It wouldn't be accurate to say everyone who has their information compromised in a data breach is a victim of identity theft, but the odds of it happening skyrocket. The best defense we can put up is to know how our identities can be misused, watch for the warning signs, and have a plan of action when it happens to us.
I'm a Victim, What Do I Do?
By Jake Stroup, About.com Guide to Identity Theft
Recovering from identity theft is a hassle. The FTC says a victim will spend hundreds of hours and thousands of dollars over the next several years trying to clear up the mess. Be prepared to spend hours off work, on the phone, filling out forms, and answering the same questions over and over. Be prepared for a lot of skepticism along the way... victims often report having to jump through hoops to prove they are who they say they are.

______________________________________________________________________

Contact Biewer & Associates
Independent Associates - Pre-Paid Legal, Inc.
Certified Identity Theft Risk Management Specialists ^TM

Phone: 920.924.9928
Fax: 888.539.5962
Email: biewer@biewerassociates.com

Or contact us by mail:

Biewer & Associates
N5211 County Rd. Y
Oakfield, WI 53065