Preventing Identity Fraud

ID theft is a crime that takes place when someone uses personal information that belongs to someone else without their permission and commits an act of fraud with it.

The personal information used is often private and particular to that individual like a social security number, or credit card or driving license details.

It is used illegally to get credit and to buy goods and services by impersonating the victim.

How is identity theft done?

• Firstly “true name” theft involves the criminal using someone’s personal and private information to open a bank, credit card or phone account, hire a car, rent a home and so on.

• The second type involves gaining illegal access to the victim’s existing personal accounts. This can have serious consequences for the victim, such as damage to reputation and credit scores.

Not all of these can be easily or quickly resolved sometimes having repercussions for years to come, for example when applying for a loan or a new job.

How can it happen?

There are a number of tactics deployed by these criminals to grab hold of your details. One place that continues to be a rich source of pickings for identity thieves is your own rubbish bin which they will rummage through, looking for any information you may have inadvertantly left on personal documents, bills, bank statements and reminders etc that you have thrown away.

Another tactic is to use a special device called a skimmer which is sneakily used to swipe or store credit card numbers on cards at the time they that are presented for a legitimate purchase. Phishing is another strategy and this involves posing as a representative for a financial company either over the phone or on the internet, sometimes sending spam into your mail box or using pop-up messages and fake customer service numbers and websites, that request your personal information.

Your bills may end up going somewhere else when they are deliberately diverted by a fraudster filling out a change-of-address form. Personal items may be stolen directly by snatching a handbag, purse, phone or wallet, stealing papers off a desk and so on. It may also be an inside job by, for example, someone gaining employment as a postman and snatching mail and by bribing employees to allow access to personal records.

Information may also be stolen by pretense, lying about who they are to financial institutions, utilities companies and anywhere else that may hold private records for their clients in order to access the details contained therein.

How to prevent or protect yourself from fraud.

• Don’t throw your important paperwork into the rubbish without shredding it first. Information to be particularly careful about includes security numbers for credit cards, medical, insurance and social security details and bank statements.

• Lock away important papers as much as possible. Check statements and billing history regularly for any unusual activity or items you don’t recognize. Be aware of when your bills and other security sensitive documents are due by mail and notify the appropriate departments if they are overdue in case they have been diverted or stolen.

• Don’t include your telephone or social security details on bank checks. Do a regular annual or bi-annual check on your credit history or obtain a credit report with a major credit bureau and look for any signs of unauthorised activity.

• Make some enquiries at your place of employment about what security measures are in place to protect any sensitive information they may hold about you and how they go about its disposal.

• Resist the temptation to answer any messages, telephone calls, emails and so on that you haven’t yourself requested, especially if they are asking for personal details. When in doubt find a way to check the company independently of the contact number or email they provide and never give any personal details over the phone if you don’t know or trust the company or service provider.

• Whenever you go away on holiday or for any length of time arrange for the local post office or a neighbor you trust to hold your post until you get back.

• Join a reputable identity theft protection program or plan, especially one that will alert you of unusual account activity. Your credit card company may also be able to offer a credit card alert service

• Get in touch with all of the creditors where your name or personal details have been fraudulently used so that they can take any necessary measures. Also get in touch with any banks and financial institutions who hold accounts for you that have been the subject of fraudulent activity. You may need to put a hold on standing orders and direct debits, cancel pin numbers and cards, close the accounts and open a new ones.

• Let check verification companies know so that they can alert any stores stop accepting checks from these accounts.

• Inform the police and report any theft to the FTC (Federal Trade Commission)who can advise you on any steps you need to take.

• Send a request to the main credit bureaus such as Experian and Equifax to set up a fraud alert and to let you know if there are any changes or account additions being requested in your name. Source government agencies that may be able to help, such as the Social Security Administration Fraud Hotline (1-800-269-0271) or the US Postal Inspection Service (1-800-372-8347)

• Make sure to keep a good record of the theft details, including times, dates, incidences etc. Record details of any ongoing investigations and how it was eventually resolved, including copies of any relevant documentation, disputed bills, official reports, written correspondence and original paperwork. Records are best kept as a log and in written form. For any communications that were made, who with, whether by phone, get confirmation in writing, sent by recorded post and ask for return receipts.

• What you need to check for in your credit report. Make sure that all transactions and balances are as you would expect and that there is no-one you don’t recognize that has requested a report. Check for any unrecognized requests in lieu of any new accounts or loans you know you haven’t applied for because this could be an indication that a fraudster has opened or applied for an account in your name. Have a look at the address or addresses listed to see if they are yours because, if not, it may mean that your mail is being redirected.

• An important item to investigate would be your Social Security number. Make sure it is the correct one. Other items to inspect would be the accuracy of your employment log and details and looking for consistency of data across several credit bureaus. Any inconsistencies or incorrect data should be reported as soon as possible both to the bureau and to the specific creditor related to the suspect item.