Identity Theft
Identify theft is the most damaging and personally invasive of new illegal cyberactivities. It is a crime in just about any country to steal someone's identify. The use of technology and the Internet has made it very simple to become someone else. When someone wrongfully obtains and uses another person's personal data that is identity theft. Fraud is very closely linked to identity theft in many cases. In the U.S., online databases carrying everything from your Social Security number to your driver license information, which can be hacked and stolen. When criminals try to become you, they steal as much information about you as they can, such as bank account or credit card numbers, telephone calling card numbers, your home address, your cell phone number, and your Social Security card number. All these bits of information can be used to re-create you for their own purposes, which in many cases is for financial gain. With access to all this information, someone can open a bank account, write bad checks, take money from your existing bank accounts, open credit cards, and ruin your financial standing. Running up huge debts and using your identify to commit a crime can even get you thrown in prison.
Even before the advent of sophisticated Internet technologies, identity theft was a problem. The easy ways to find information and cause identify theft have grown with Internet use. In the U.S., one of the most important pieces of information about you is your Social Security number, and probably next in line are your birthday and home address. With such information, a criminal can open credit card accounts, take out loans, and even get a driver's license. Crimes can be committed in your name after a criminal has this information.
Proving who you are and that you did not commit those crimes can be a problem. With credit card theft and usage, U.S. customers are responsible for only $50 of fraud because of the Truth in Lending Act. The problem with financial theft, though, is that your credit history is ruined and you will have a difficult time doing things such as getting a home loan or car loan. Cleaning up your credit report will be a nightmare and a time-consuming process.
Information is the key in doing battle against identity theft. For you to avoid being a victim, you should know how this can be done. Some of the things that can be done with your identity include
Opening a credit card in your name with your Social Security number, home address, and phone number. Home address and phone number are easily found through public sources such as the phone company.
Writing bad checks in your name.
Opening bank accounts in your name.
Getting a driver's license in your name with all the information the criminal now has.
Getting a telephone or cell phone account that can be turned on.
Filing bankruptcy in your name.
Obtaining car and home loans in your name.
Here are the various ways identity thieves get your personal information:
Finding your Social Security number in some fashion, whether by stealing your mail; going through your trash; or hacking into a database that has it, such as DMV records, a credit card company, or an employer database
Stealing your wallet or purse, which invariably has a wealth of information about you
Responding to a preapproved credit card application
Changing your mailing address with the post office to forward your mail
Obtaining a credit report on you and using that information for illegal purposes
Obtaining information about you from your employer's human resources department
Searching the Internet for any information about you, such as e-mail or newsgroup messages you have sent; hacking into companies that have information about you; and stealing such information
Gaining information about you by having someone who works at your bank gather that information
Risk Reduction
After you understand the dangers posed by identity theft, your next step is to reduce your risk to such activity. As with any criminal activity involving personal information, keeping track of how you use information and how others use your information is the most important factor in keeping your data safe. But as we have mentioned already, after you let that information out, there isn't much you can do to protect it after it is entered into some company's database. As a consumer, you have no control over the security measures in place at your credit card company or at the Department of Motor Vehicles.
Some things you can control, however, include the following:
Check your credit card statements every month and ensure that you receive one each month. Missing statements can mean that someone stole it or redirected your mail. Unknown charges on your card should obviously be investigated.
Check with the post office if you stop receiving mail suddenly. Your mail should be delivered in a box that only you and the postal worker can access. Mail can be put on hold while you're on vacation by calling 800-275-8777.
Password-protect your credit card accounts, bank accounts, and phone account using today's technology and services provided by these organizations. Changes can't be made unless you supply that password.
In your wallet or purse, reduce the amount of cards you carry.
Never give out personal information over the phone or to anyone who can't justify where they are from and what need they have for that information.
Do not fill out Internet surveys or mailing surveys with personal information.
Destroy any credit card receipts, bank account statements, credit card statements, brokerage statements, or other hardcopy material that is personally identifiable with a shredder before throwing it away.
When signing up with new companies, such as when buying a product or getting a credit card, make sure the company is legitimate and has been in business a while. An easy way is to check with the Better Business Bureau (BBB).
Check the privacy policy for any Internet site to which you submit personal information. It should have statements regarding sharing and security of your information. If there is no privacy policy, stay away!
Check your credit report periodically to see what activity is happening and who is checking up on your credit status. If you are getting numerous credit card checks, perhaps someone is opening credit cards in your name. You can be charged up to $8.50 for a copy of your credit report. Any mistakes you see about yourself in your credit report should be followed up on immediately.
When purchasing from a Web site, check the security measures as well as ensure that encryption is turned on (that little lock icon in the browser should be closed). Many sites use certificates, so check whether these certificates are for the legitimate company and not someone trying to impersonate that company. (We discuss certificates in detail in Chapter 8, “E-mail Security,” and Chapter 9, “Securing Your Internet Transactions with SSL or Digital Certificates.”) Many sites use certifications to prove their legitimacy, such as from BBB (www.bbbonline.org), the American Institute of Certified Public Accountants (www.cpawebtrust.org), and TRUSTe (www.truste.org). Never give out Social Security information online, and use only one credit card for all Internet purchases.
Do not respond to a request for information through e-mail or Internet sites unless you know it is legitimate and how the information will be used and secured.
Recovering from a Theft
Even if you are vigilante about how you use your personal information and think you have been careful, you can fall victim to an identity theft. It's like a lightening strike—you never know when it might happen and sometimes there is just nothing you can do about it. If you become a victim, there are certain steps you can take to attempt to recover your life from the criminals. Several actions you can take include
Request that a fraud alert be placed on your account from the three major credit bureaus: Experian, Equifax, and Trans Union— Making a statement to them that you have become a victim of identity theft lets them know that creditors should contact you about accounts and about making changes and canceling accounts. The credit bureau must give you the written results and a free copy of your report when disputes result in a change to your credit history.
Check the credit history from the time the activity started— You can check for changes and inaccuracies in your credit report. Inquires on your account can be attempts to open accounts in your name. The Fair Credit Reporting Act (FCRA) establishes procedures for correcting mistakes on your credit record, and credit bureaus and organization that provided the information to the credit bureaus have to allow you to correct your information.
Contact all your creditors and notify them of what has happened— These include credit card companies, phone companies and other utilities, banks, lenders, product companies where purchases have been made, and any other agencies where you do business or you see activity happening on your credit report. Provide your complete name and address and clearly identify each item in your report that you dispute. Also, be sure to give the facts and explain why you're disputing the information. You should also request the deletion or correction of the information.
File a report with the police in your community— This will help you if crimes have been committed in your name and help you show proof of the theft to companies.
Write a letter to the collection agency telling them to stop contacting you and that you have no outstanding debt— The Fair Debt Collection Practices Act prohibits debt collectors from using unfair or deceptive practices. You might still owe money, which will show up on your credit report, but you have some ability to stop debt collectors from harassing you when your identity has been stolen and give yourself time to resolve the problem before your credit is damaged further.
Add passwords to all your accounts— This ensures that no further activity can occur on your accounts.
Check your bank statements and stop all check activity on your account.
Cancel all credit and debit cards if they have been stolen— Send letters to credit card companies via certified mail disputing charges.
Report your ATM card stolen within two business days— You will be liable for only $50 loss. The Electronic Fund Transfer Act provides consumer protections for transactions involving an ATM or a debit card and limits liability. After two business days, but within 60 days, you can be responsible for up to $500 of withdrawals.
Check all brokerage accounts and ensure nothing has been changed in your accounts.
If your Social Security number has been used, you can contact the Social Security Administration's Fraud Hotline— Call 800-269-0271 and notify them of the incident. Check with the Department of Motor Vehicles to see whether any changes have been made to your diver's license or whether a new one has been issued.
Check whether a bankruptcy has been filed in your name with the U.S. Trustee Program in your region— Information can be found at www.usdoj.gov/ust. You can provide information on the identity theft and file a complaint.
Contact the Internet Fraud Complaint Center— Go to www.ifccfbi.gov/Default.asp to report online identity theft. A lot of information is available through this site.
Request a new Social Security number as a last resort— Do this only as a last resort because it can cause a number of problems. A new SSN will not clear up your credit history and can cause problems in getting credit in the future. This can have very far-reaching effects, so try everything else first.
When you have determined that you are a victim, the previously mentioned actions should be taken immediately. In the U.S., the Federal Trade Commission is responsible for following up with identify theft. They can walk you through the process of recovering from a theft and put you in contact with the other necessary agencies. They can be reached at 877-IDTHEFT (438-4338). Next in line to contact are the three credit bureaus: Equifax at 800-525-6285, Experian at 888-397-3742, and Trans Union at 800-680-7289. These agencies are powerful and can help you track activity of using your name. This invasion of your privacy can have long-lasting effects on our credit history and reputation and should be resolved as soon as possible if you become a victim. You will have to work with government agencies and businesses over a period of time to clear up your name.
Legal Recourse
The Identity Theft and Assumption Deterrence Act of 1998 makes it a federal crime for someone to knowingly transfer or use the identification of another person with the intent to commit, or to aid or abet, any unlawful activity that constitutes a violation of federal law, or that constitutes a felony under any applicable state or local law. This law is used to prosecute identity thieves. Forms of identification include credit card number, cellular telephone number, name, Social Security number, and a host of other means. In the U.S., agencies that investigate identity theft include the Federal Trade Commission, U.S. Secret Service, Federal Bureau of Investigations, U.S. Postal Inspection Service, and Social Security Administration's Office of the Inspector General; federal cases are prosecuted by the U.S. Department of Justice. In addition to federal laws, each U.S. state has its own set of laws that address identity theft. Most state laws are listed in Table 5.5.
| State | Law |
|---|---|
| Alabama | 2001 Al. Pub. Act 312; 2001 Al. SB 144 |
| Alaska | 2000 Alaska Sess. Laws 65 |
| Arizona | Ariz. Rev. Stat. § 13-2008 |
| Arkansas | Ark. Code Ann. § 5-37-227 |
| California | Cal. Penal Code § 530.5-530.7 |
| Colorado | Colo. Rev. Stat. § 18-5-102 |
| Connecticut | 1999 Gen. Stat. § 53(a)-120(a) |
| Delaware | Del. Code Ann. tit. II, § 854 |
| Florida | Fla. Stat. Ann. § 817.568 |
| Georgia | Ga. Code Ann. § 16-9-121 |
| Idaho | Idaho Code § 18-3126 |
| Illinois | 720 III. Comp. Stat. 5/16G |
| Indiana | Ind. Code Ann. § 35-43-5-4 (2000) |
| Iowa | Iowa Code § 715A.8 |
| Kansas | Kan. Stat. Ann. § 21-4018 |
| Kentucky | Ky. Rev. Stat. Ann. § 514.160 |
| Louisiana | La. Rev. Stat. Ann. § 14:67.16 |
| Maine | Me. Rev. Stat. Ann. § tit. 17-A, U 354-2A |
| Maryland | Md. Ann. Code art. 27, § 231 |
| Massachusetts | Mass. Gen. Laws ch. 266, § 37E |
| Michigan | Mich. Comp. Laws § 750.285 |
| Minnesota | Minn. Stat. Ann. § 609.527 |
| Mississippi | Miss. Code Ann. § 97-19-85 |
| Missouri | Mo. Rev. Stat. § 570.223 |
| Montana | H.B. 331, 2001 Leg. (not yet codified) |
| Nevada | Nev. Rev. Stat. § 205.463-465 |
| New Hampshire | N.H. Rev. Stat. Ann. § 638:26 |
| New Jersey | N.J. Stat. Ann. § 2C:21-17 |
| North Carolina | N.C. Gen. Stat. § 14-113.20 |
| North Dakota | N.D.C.C. § 12.1-23 |
| Ohio | Ohio Rev. Code Ann. 2913.49 |
| Oklahoma | Okla. Stat. tit. 21, § 1533.1 |
| Oregon | Or. Rev. Stat. § 165.800 |
| Pennsylvania | 18 Pa. Cons. State § 4120 |
| Rhode Island | R.I. Gen. Laws § 11-49.1-1 |
| South Carolina | S.C. Code Ann. § 16-13-500, 501 |
| South Dakota | S.D. Codified Laws § 22-30A-3.1. |
| Tennessee | Tenn. Code Ann. § 39-14-150 |
| Texas | Tex. Penal Code § 32.51 |
| Utah | Utah Code Ann. § 76-6-1101-1104 |
| Virginia | VA. Code Ann. § 18.2-186.3 |
| Washington | Wash. Rev. Code § 9.35.020 |
| West Virginia | W. Va. Code § 61-3-54 |
| Wisconsin | Wis. Stat. § 943.201 |
| Wyoming | Wyo. Stat. Ann. § 6-3-901 |
| Guam | 9 Guam Code Ann. § 46.80 |
| U.S. Virgin Islands | 14 VI Code Ann. § 3003 |
Resources
A number of governmental resources are available when you become a victim of an identity theft. Several of these resources include
Federal Trade Commission— Its Web site is at www.ftc.gov or www.consumer.gov/idtheft. The FTC is the federal clearinghouse for identity theft complaints. It provides victims with information to help resolve the problems associated with identify theft. It also refers complaints to other agencies and can be reached at 877-IDTHEFT (438-4338) or Identity Theft Clearinghouse, Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, D.C. 20580.
Office of Thrift Supervision (OTS)— Its Web site is at www.ots.treas.gov. The OTS is the primary regulator of all federal and many state-chartered thrift institutions, including savings banks and savings and loan institutions. It can be reached at 202-906-6000 or at Office of Thrift Supervision, 1700 G Street, NW, Washington, D.C. 20552.
Department of Justice (DOJ)— Its Web site is at www.usdoj.gov. The DOJ and its U.S. attorneys prosecute federal identity theft cases.
Federal Bureau of Investigation— Its Web site is at www.fbi.gov, and it investigates cases of identity theft and assists in building cases for prosecution.
Internal Revenue Service— Its Web site is at www.treas.gov/irs/ci. The IRS is responsible for administering and enforcing the internal revenue laws; if you have a problem with federal income tax returns, you can call 800-829-0433 or 877-777-4778.
U.S. Secret Service (USSS)— Its Web site is at www.treas.gov/usss. The U.S. Secret Service investigates financial crimes, which can include identity theft.
Social Security Administration (SSA)— Its Web site is at www.ssa.gov. The SSA can assign you a new SSN and handles problems with theft of your Social Security number. It can be contacted through the SSA Fraud Hotline at 800-269-0271 or by writing to SSA Fraud Hotline, P.O. Box 17768, Baltimore, MD 21235.
U.S. Postal Inspection Service (USPIS)— Its Web site is at www.usps.gov/websites/depart/inspect. The USPIS is one of the federal law enforcement agencies that investigates cases of identity theft and is the law enforcement arm of the U.S. Postal Service.
U.S. Securities and Exchange Commission (SEC)— Its Web site is at www.sec.gov. The SEC's Office of Investor Education and Assistance serves investor complaints of fraud or investment mishandling. Identity theft in connection with a securities transaction can be notified by writing SEC, 450 Fifth Street, NW, Washington, D.C. 20549-0213. You also can call 202-942-7040 or send an e-mail to [email protected].
U.S. Trustee (UST)— Its Web site is at www.usdoj.gov/ust. Someone filing a bankruptcy in your name would have to go through the UST. You can write to them to substantiate who you are and that your identity has been illegally used.
State and local governments— Many state and local governments that have their own laws about identity theft can be reached through the state attorney general's office. A list can be found at www.naag.org, or the local consumer protection agency can be found at www.consumer.gov/idtheft/.
Credit bureaus— The following are the three main bureaus:
Equifax— Its Web site is at www.equifax.com. To order your report, call 800-685-1111 or write P.O. Box 740241, Atlanta, GA 30374-0241. To report fraud, call 800-525-6285 and write P.O. Box 740241, Atlanta, GA 30374-0241.
Experian— Its Web site is at www.experian.com. To order your report, call 888-EXPERIAN (397-3742) or write P.O. Box 2104, Allen, TX 75013. To report fraud, call 888-EXPERIAN (397-3742) or write P.O. Box 9532, Allen, TX 75013.
Trans Union— Its Web site is at www.tuc.com. To order your report, call 800-916-8800 or write P.O. Box 1000, Chester, PA 19022. To report fraud, call 800-680-7289 or write Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92634.