What would you do if your credit cards were stolen? If
merchandise that you did not purchase was charged to
your credit accounts? If unauthorized credit accounts
were opened in your name?
These actions are examples of credit fraud, also referred
to as identity fraud, identity theft, and account takeover
fraud, where criminals steal victim’s identities
in order to take over their credit accounts. Identity
theft is becoming a tremendous problem in this country,
especially South Florida. It has become one of
the fastest growing types of fraud. It can strike
anyone and affects everyone. When criminals
buy goods and services on credit using false information,
we all pay through higher prices and more expensive
credit terms, and when someone is victimized by a particularly
successful scam, criminals are more likely to continue
cheating others using similar fraudulent operations.
This memo is a compilation of articles and ideas designed
to help protect you against identity theft and provide
you with helpful resources.
Identity theft occurs whenever an unauthorized individual
uses your personal information (name, SSN, credit card
numbers, etc.) to open new accounts or charge merchandise
in your name without your permission. While you
may think your personal information is secure, often,
it is not. There are a number of common sense
measures you can use to effectively defend yourself
against fraudulent activity and minimize the costs
of credit fraud.
- Safeguard your credit cards and treat them
like cash.
- Reduce the number of credit cards you use,
and do not carry them all with you.
- If a credit card bill is late, call the customer
service number immediately. Make sure that your
mail has not been diverted to a new address.
- Review your statement carefully to make sure
all charges are accurate.
- Report billing errors and lost or stolen cards
to your credit insurer immediately.
- Minimize the amount of personal information
a criminal can steal. Do not carry extra credit
cards, a Social Security card, birth certificate, or
passport.
- Sign your new cards as soon as you receive
them.
- Never give a card number or other information
over the phone or the internet unless you initiated
the call or access.
- Shred pre-approved credit card offers, credit
card receipts, credit card checks, copies of airline
tickets, and anything else that displays your credit
card information before putting them
in the trash.
- Check your credit report for accuracy at least
once per year.
Act immediately to minimize damage. In dealing
with the authorities and financial institutions, keep
a log of all conversations, including dates, names,
and phone numbers. Note time spent and any expenses
incurred. Confirm conversations in writing. Send
correspondence by certified mail (return receipt requested). Keep
copies of all letters and documents. Some of
the steps recommended are as follows:
§ Credit bureaus. Immediately call the
consumer/credit bureaus fraud units of the three credit
reporting companies --Experian (formerly TRW), Equifax
and Trans Union. Report the theft of your credit
cards or numbers. Ask that your account be flagged
and ask for a copy of your report (if you are a victim
of fraud, the first report is usually free). Also,
add a victim’s statement to your report, up to
100 words. (“My ID has been used to apply
for credit fraudulently. Contact me at 311-123-4567
to verify all applications.”) The Fair Credit
Reporting Act (15 U.S.C. SS 1681 – 1682t) allows
such “100 word” statements, as well as
mandating that the Credit Reporting Bureaus review
and investigate your allegations of error and return
a report within 30 days. Be sure to ask how long the
fraud alert is posted on your account, and how you
can extend it if necessary.
§ Equifax information: their fraud report # is
(800) 525-6285; their credit order report # is (800)
685-1111; their web site is www.equifax.com or write:
P.O. Box 740250, Atlanta, GA 30374-0250. To order
a copy of the report ($8 in most states) write to: P.O.
Box 740241, Atlanta, GA 30374—0241, or phone
1-800-997-2493.
§ Experian information: their fraud report #
is (888) EXPERIAN (397-3742); their credit order report
# is the same. Their web site is www.experian.com
or write: P.O. Box 949, Allen, TX 75013. To
order a copy of the report ($8 in most states) write
to: P.O. Box 2104, Allen, TX 75013.
§ Trans Union information: their fraud
report # is (800) 680-7289; their credit order report
# is (800) 916-8800; their web site is www.tuc.com
or write: P.O. Box 6790, Fullerton, CA 92634. To
order a copy of the report ($8 in most states) write
to: P.O. Box 390, Springfield, PA 19064.
Be aware that these measures may not entirely stop
new fraudulent accounts from being opened by the impostor. Ask
the credit bureaus, in writing, to provide you with
free copies every few months so you can monitor your
credit report. Ask the credit bureaus for names
and phone numbers of credit grantors with whom fraudulent
accounts have been opened. Ask the credit bureaus
to remove inquiries that have been generated due to
the fraudulent access. You may also ask the credit
bureaus to notify those who have received your credit
report in the last six months in order to alert them
to the disputed and erroneous information (two years
for employers.)
Creditors. Contact all creditors immediately
with whom your name has been used fraudulently – by
phone and in writing. Get replacement cards with
new account numbers for your own accounts that have
been used fraudulently. Ask that old accounts
be processed as “account closed at consumer’s
request.” (This is better than “card
lost or stolen,” because when this statement
is reported to credit bureaus, it can be interpreted
as blaming you for the loss.) Carefully monitor
your mail and credit card bills for evidence of new
fraudulent activity. Report it immediately to
credit grantors.
Contact the creditors for any accounts that have been
tampered with or opened fraudulently. Ask to
speak with someone in the security or fraud department,
and follow up in writing. Following up with a
letter is one of the procedures spelled out in the
Fair Credit Billing Act for resolving errors on credit
billing statements, including charges or electronic
fund transfers that you have not made.
Report the crime to local police and sheriff’s
departments with jurisdiction. If you think the
fraud occurred on military base, contact NCIS. Give
them as much documented evidence as possible. Keep
a record of all your telephone calls and reports.
Stolen checks. If you have had checks stolen
or bank accounts set up fraudulently, report it to
the check verification companies. Put stop payments
on any outstanding checks that you are unsure of. Cancel
your checking and savings accounts and obtain new account
numbers. Give the bank a secret password for
your account (not mother’s maiden name or SSN).
ATM cards. If your ATM card has been stolen
or compromised, get a new card, account number and
password. Do not use your old password. When
creating a password, do not use common numbers like
the last four digits of your Social Security number
or your birth date. Immediate notification to
the bank, upon review of your account statement, will
limit your losses dramatically due to the Electronic
Fund Transfer Act (15 U.S.C. S 1666, 12 CFR Part 205),
or EFTA. The time limits for action under EFTA
are severely constrained: if you provide notice
to a bank/financial institution within 2 business days
from date of receipt of your statement then your maximum
exposure is $50; if you provide notice within 2-60
business days then your maximum exposure is $500; if
you provide notice after 61 business days you face
unlimited exposure – no protections under the
EFTA, although other protections may be available.
Fraudulent change of address. Notify the local
Postal Inspector if you suspect an identity thief has
filed a change of your address with the post office
or has used the mail to commit credit or bank fraud. (Call
the Postmaster to obtain the phone number, 1-800-275-8777). Find
out where fraudulent credit cards were sent. Notify
the local Postmaster for that address to forward all
mail in your name to your own address. Talk with the
mail carrier in your area if possible. www.usps.gov/websites/depart/inspect
Social Security Number misuse. Call the Social
Security Administration (SSA) to report fraudulent
use of your Social Security number. Report fraud
to 1-800-269-0271. As a last resort, you might
want to change your number…The SSA will only
change it if you fit their fraud victim criteria. Obtain
Social Security Pub 05-10064 “When Someone Misuses
Your Social Security Number.” Also order
a copy of your Earnings and Benefits Statement and
check it for accuracy; call (800) 772-1213. www.ssa.gov
Passports. If you have a passport, notify the
passport office in writing to be on the lookout for
anyone ordering a new passport fraudulently. http://travel.state.gov/passport_services.html
Phone service. If your long distance calling
card has been stolen or you discover fraudulent charges
on your bill, cancel the account and open a new one. Provide
a password which must be used any time the account
is changed. Again, file a police report and contact
the fraud section of the phone company.
Drivers license number misuse. You may need
to change your driver’s license number if someone
is using yours as identification on bad checks. Call
the state office of the Department of Motor Vehicles
(DMV) to see if another license was issued in your
name. Put a fraud alert on your license. Go
to your local DMV to request a new number. Also,
fill out the DMV’s complaint form to begin the
fraud investigation process. Send supporting documents
with the completed form to the nearest DMV investigation
office.
False civil and criminal judgments. Sometimes
victims of identity theft are wrongfully accused of
crimes committed by the impostor. If a civil
judgment has been entered in your name for actions
taken by your impostor, contact the court where the
judgment was entered and report that you are a victim
of identity theft. If you are being wrongfully
prosecuted for criminal charges, contact a lawyer before
you contact the authorities.
Legal help. You may want to consult an attorney
to determine legal action to take against creditors
and/or credit bureaus if they are not cooperative in
removing fraudulent entries from your credit report
or if negligence is a factor. Contact your Legal
Assistance Office for assistance and input. You
may also call the local Bar Association to find an
attorney who specializes in consumer law and the Fair
Credit Reporting Act.
FTC. Involve the Federal Trade Commission. The
Federal Trade Commission is the federal clearinghouse
for consumer complaints about identity theft. The
information your provide can help the Commission and
other law enforcement agencies track, investigate and
prosecute identity thieves. You can file a complaint
with the FTC by contacting the Consumer Response Center
by phone: toll free 877-FTC-HELP (382-4357);
TDD: 202-326-2502; by mail: Consumer Response
Center, Federal Trade Commission, 600 Pennsylvania
Ave, NW, Washington, DC 20580; or through the Internet,
using the online complaint form. Although the
Commission cannot resolve individual problems for consumers,
it can act against a company if it sees a pattern of
possible law violations. The FTC publishes free
brochures on many consumer issues. For a complete
list of publications, write for Best Sellers, Consumer
Response Center, Federal Trade Commission 600 Pennsylvania
Ave, NW, Washington, D.C. 20580; or call toll free
(877) FTC-HELP (382-4357), TDD (202) 326-2502. www.ftc.gov
Don’t give in. Finally, do not pay any
bill or portion of a bill which is a result of identity
theft. Do not cover any checks which were written
and/or cashed fraudulently. Your credit rating
should not be permanently affected, and no legal
action should be taken against you. If any
merchant, financial institutions or collection agency
suggest otherwise, simply restate your willingness
to cooperate, but don’t allow yourself to be
coerced into paying fraudulent bills. Some helpful web-sites:
Privacy
Right Clearinghouse (the fact sheets)
ACLU
(click ‘privacy’)
www.identitytheft.org
Privacy
Times; Bi-weekly newsletter
Social
Security Pub 05-10064 - “When Someone Misuses
Your Social Security Number”
Federal
Trade Commission (click Consumer, then Privacy, then
Consumer Education)
Public
Interest Research Group (click on Consumer, then Privacy)
Electronic
Privacy Information Center |
