NOT FOUND: identity-fraud.jpgIdentity theft or fraud can happen to anyone. Each year, 15 million Americans have their identities used fraudulently, with more than $50 billion dollars worth of losses. Identity fraud is defined by the US Department of Justice as a “crime which occurs when someone wrongfully obtains and uses a person’s personal data in some way that involves fraud or deception, usually for economic gain.” It happens every day, and is quickly becoming the fastest growing crime in our country.
There are various types of identity fraud. The biggest category is credit card fraud – when someone gets your credit card numbers and uses them without your knowledge. A close second is utilities fraud - when utilities are obtained by using a child’s name or the name of someone who doesn’t live at the residence. Bank fraud includes the theft of checks and ATM passwords. Employment fraud happens when a person uses someone else’s Social Security number to get a job. Loan fraud and government fraud are other common types.
Identity thieves use a wide variety of methods to get your personal information. There are the traditional methods like stealing your wallet, purse, or mail, and digging through your trash cans for old bills. Other ways include eavesdropping on your phone conversations, and watching ‘over your shoulder’ as you punch in your ATM PIN number. There are many documents identity thieves use to get your personal information. Cancelled checks, credit card bills, bank statements, paycheck stubs, utility bills, pre-approved credit card offers and applications are obvious examples. There are many others that are not so obvious – return addresses on envelopes that show where you bank, who your doctor, stockbroker, or mortgage broker is.
How can you avoid becoming a victim of identity fraud? There are some basic steps you can take to protect your information. Identity thieves often follow the mail deliverers through neighborhoods - it gives them easy access to your mail. You can foil these thieves by getting a post office box, having a steel locked mail box at your home, and putting your mail on hold when you go on vacations. Use direct deposit for wages and income payments, use online bill payment, and request online credit card and bank statements. Drop off outgoing payments at the post office, or hand them directly to the postman. A shredder is a worthwhile investment - it is an effective deterrent to identity thieves.
There are also preventative steps you can take. The US Department of Justice suggests the acronym ‘SCAM’. S is for being stingy when it comes to giving out your personal information to others, unless you have a very good reason to trust them. Do not give your Social Security number, birth date, credit card or bank account numbers to anyone who calls you. If you make the call, make sure you do so in privacy – away from any potential eavesdroppers. C stands for checking your financial information regularly. Review your bank and credit card statements monthly, so you can recognize anything out of the ordinary. A is asking periodically for your credit report. You can get one free one per year at annualcreditreport.com. There are also fraud monitoring services available which alert you when unusual inquiries or activities surrounding your Social Security number occur. M is for maintaining careful records of your banking and financial accounts. Retain your cancelled checks and monthly statements for a minimum of one year. These will help you to prove any discrepancies.
There is always a chance that your identity will be stolen, no matter how careful you are. But if you follow these tips, that chance will be greatly diminished. If you have any questions, feel free to e-mail me at eallen@northsacnews.com.