Identity theft can occur if someone learns enough of your personal information to be able to use it
as though the thief were you. Common forms of theft result when a stranger figures out the
victim's credit card number, with or without stealing the credit card, and when a stranger learns
the password or PIN (Personal ID Number) for one of the victim's banking or computer
accounts.
According to the Federal Trade Commission (FTC), identity theft is the most common consumer fraud complaint. The Federal Trade
Commission's website gives more background. More than 160,000 US citizens were victims
of ID theft in 2002.
Not only can the thief use the money in your account, but also the damage
done through lack of payment of your accounts (even if you were not responsible for the charges)
can lead to problems with your credit rating.
Actions regarding identity theft involve both prevention and recovery.
The potential for theft is one more good reason to check your credit report with the three major credit bureaus at least once a year. It can take years to straighten out misuse of your name and/or
accounts, and false charges can remain on your credit history. In particular, you should always
review your credit report a couple months after any extended travel, particularly to a foreign
country.
To limit the chances for theft,
- Don't carry personal financial information in your wallet or checked luggage. Keep your social
security card in a safe, secure place at home, and don't carry a PIN in your wallet or with your ATM card.
- When using ATM machines, be aware of nearby and loitering individuals, and shield the ATM keypad with your hand as you enter your PIN.
- Never give out account numbers, passwords, or other personal information on the Internet unless you are positive that the transmission is encrypted and that you can trust the recipient. Be suspicious of any request for information coming by email.
- Have your mail held at the post office when you are away on vacation. (If they can obtain your mail, identity thieves can use your bills and credit card offers to steal personal information.)
- Don't leave credit card receipts in your hotel room or throw receipts away if your credit card number is printed there.
|
If your wallet or handbag is stolen, or if your credit cards or identification cards (such as a driver's
license) otherwise disappear, assume that the thief or finder will try to use the information to your
disadvantage. Similarly, if you suspect that knowledge of PINs, passwords, or account numbers
has fallen into the wrong hands, act quickly to limit the damage:
- Call the FTC's toll-free identity-theft hot-line, 877-ID-THEFT (877-4384338). This number is
linked to the nation's central identity-fraud clearinghouse.
- Call the fraud departments of the three major credit bureaus to tell them you're an identity theft
victim. A fraud alert on your file, coupled with a request that creditors call you before opening
any new accounts, can help prevent an identity thief from opening other accounts in your name.
- Close any accounts that you think an identity thief may have accessed. This includes accounts
with banks, credit card companies and other lenders, and phone companies, utilities, ISPs and
other service providers.
- File a police report. Keep a copy of the police report in case you need proof of the crime. Even
if the police can't catch the identity thief in your case, having a copy of the police report can help
you when dealing with creditors.
|