The Many Faces of Identity Theft

If you’re like me, the thought of someone stealing your identity sounds like a nightmare.  When researching this topic recently, though, I was stunned to discover just how much of a threat it is and how many different things thieves can use your identity to do.

I knew that they could open credit card accounts and that they could even take control of my existing credit card accounts.  What I didn’t know was that they can also open phone service, make calls that look like they came from my cell phone and are billed to my account, obtain Driver’s licenses, and even get a job! 

Even more numerous than the ways in which my information can be used are the ways in which my information can be stolen.  Small, hand-held devices can be used by a restaurant worker or a cashier to grab all of my information from that card.  One swipe takes the blink of an eye and—just like that—my information is in their hands.  Thieves can also rig the machines of legitimate businesses with tiny devices that can gather information from hundreds of users.  These can be placed in a variety of places such as ATMs and the card reader at the gas pump.  We give out our information all the time when paying for something either over the phone or online.

The more I found out the more I wanted to protect myself.  There are a host of consumer protection companies out there.  Ironically, one of the companies that advertises heavily on television, Lifelock, is being sued by people in three different states who have had their identity stolen.  Even the spokesman, the one who confidently shows his social security number in the commercials, has had his identity stolen.  While these companies seem to be quite good at protecting your credit accounts, keeping tabs on your credit reports so they know when people try to open new lines of credit or change existing ones, that only protects from one form of identity theft.  The Department of Motor Vehicles, for instance, doesn’t run your credit when issuing a Driver’s license.  So while credit-protection companies may serve a good purpose, they cannot completely protect you from identity theft. 

That’s the bad news.  Ready for the really bad news?  Nobody can.

While it’s impossible to completely protect yourself against identity theft, there are many things you can do to limit your risk.  Here are a few I found.

• Always shred or otherwise thoroughly destroy credit card receipts, bank slips, and other unneeded documents once you are finished with them.  Also, when you cut up a credit card or get rid of checks from an old checking account, make sure that you do so in such a way that your account numbers can’t be lifted off of them. 
• Don’t carry your social security card with you or leave it in a place in your house where somebody could see it.
• Never give out personal information over the telephone unless you initiated the call or are otherwise 100% certain of who you are talking to.
• Check bank and credit card statements each month for suspicious activity.
• Check your credit report at least once a year to look for unauthorized activity.  Ideally you should check more often than that.  The faster you can detect signs of identity theft, the better off you are.
• If a credit card statement doesn’t show up when you expected it, call the company to make sure that no one has changed the mailing address on your account.
• When shopping online, know who you’re doing business with.  Don’t give your information out over an unsecured site.  When at all possible, go with big name companies or try to pay using PayPal to minimize the number of places who have your financial information.

All of these things are great, but what happens if you find out your identity was stolen?  Here’s what you should do.

• Contact all of your creditors and banks to alert them.
• Contact the three credit reporting agencies—Equifax, Transunion, and Experian—to alert them.
• Fill out a police report.
• Notify the Federal Trade Commission.
• Work with credit card companies and banks to get new cards and, where necessary, close accounts.
• If you believe someone is using your social security number to apply for a job, report it to the Social Security Agency’s Fraud Hotline at 1-800-269-0271. 
• If you think someone is using your social security number to obtain a Driver’s License or ID card, contact your Department of Motor Vehicles to alert them.
• Monitor your credit reports for the next several months and immediately report any unauthorized activity.

Identity theft is an epidemic.  Sooner or later you or someone you know could be a victim.  Protect yourself as best as you can.  Remember, though, the faster you can detect the problem, the faster you can repair any damage that’s been done.

Related Links:

• The Social Security Administration has helpful tips on what to do in the case of identity theft.
• Report identity theft to the Federal Trade Commission.
• Equifax
• Experian
• Transunion