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Preventing Identity Theft:
Be Aware, Be Proactive, Be Assertive

By Chris M. Wright, CPP

An incorrect billing statement could be a simple error, or someone might be trying to impersonate you. Forged credit cards remain the bane of credit card users everywhere. But oddly enough, credit card fraud is not the biggest problem with identity theft. Here are some practical tips to prevent identity theft and to begin the process of restoring your good name.

Identity theft involves acquiring key pieces of a person’s identifying information in order to impersonate them, usually for financial gain. Such theft may include information such as a person’s name, address, date of birth, social security number, driver’s license number, mother’s maiden name, license plate number or other identifying personal data. Once acquired, the identity thief can use the information to commit numerous forms of fraud which include but aren’t limited to the following:

• Taking over the victims financial accounts
• Opening up new bank accounts
• Purchasing an automobile
• Applying for loans or credit cards
• Renting apartments
• Obtaining social security benefits
• Establishing public services with phone companies and utilities

Be Aware

The biggest problem is that you may never know you are a victim until you notice something is amiss — you receive an invoice for something you didn’t buy or a statement from a credit account you never opened. Perhaps you are denied credit based on negative information on your credit report. When you investigate, you discover charges and late payments you didn’t authorize and don’t know anything about. It pays to keep your eyes open. If you think you might be a victim, tackle the problem immediately. Any delay will only hurt you and your credit further.

Be Proactive

While you cannot prevent identity theft entirely, you can minimize your risk by managing your personal information wisely, cautiously and with awareness of the potential for identity theft. Effective means of information management include but are not limited to the following:

• Do not reveal any personal identifying information until you know how it will be used and whether the information will be shared with others. Ask if you have a choice about the use of your information and whether it can be kept confidential.
• Pay attention to your credit card billing cycles. Follow up with creditors if your bills do not arrive on time. A missing credit card bill could mean a thief has changed your billing address to cover his or her tracks.
• Guard your mail. Deposit outgoing mail in post office collection boxes or at your local post office. Promptly remove mail from your mailbox after it has been delivered. If you are planning to be away from home, request a vacation hold on your mail.
• Put passwords on your credit card, bank, and phone accounts.
• Do not carry more identification information and credit cards than you actually need.
• Do not give out personal information on the phone, through the mail, or over the Internet unless you have initiated the contact or know who you are dealing with. Legitimate organizations with whom you do business have the information they need and will not ask you for it.
• Shred charge receipts, copies of pre-approved or actual credit applications, insurance forms, physician statements, checks, bank statements and other financial information. DO NOT simply discard them in the trash.
• Be cautious about where you leave personal information in your home, especially if you have roommates, employ outside help, or are having service work done to your home.
• Verify that your personal information at work is kept in a secure location.
• Give your Social Security Number (SSN) only when absolutely necessary. Your employer and financial institution will likely need the number for wage and tax purposes.

Some businesses may ask for your SSN to do a credit check. However, you do not have to give a business the number just because they ask for it. Before providing your SSN, ask the following questions:

• Why do you need my SSN?
• How will it be used?
• What law requires me to give you my SSN?
• What will happen if I do not give you my SSN?

Be Assertive

If you suspect that your personal information has been stolen to commit fraud or theft, take action immediately and keep a record of your conversations and correspondence. There are three things you should almost always do.

First, contact the fraud departments of each of the three major credit bureaus. Tell them that you believe you are an identity-theft victim. Request that a “fraud alert” be placed in your file, as well as a “victim’s statement” asking that creditors call you before opening any new accounts or changing your existing accounts.

At the same time, request a copy of your credit report from each of the credit bureaus. Credit bureaus must give you a free copy of your report if your report is inaccurate because of fraud or if you have been denied credit. Otherwise, you can obtain a copy for a small fee. The three major credit bureaus are:

Second, contact the creditors for any accounts that have been tampered with or opened fraudulently. Such creditors can include credit card companies, phone companies and other utilities, banks and other lenders. Ask to speak with someone in the creditor’s security or fraud department and follow your conversation with a letter. Credit card companies must be notified in writing because that is part of the statutory consumer protection procedure for resolving errors on credit card billing statements.

Third, file a report with your local police or the police in the community where the identity theft occurred. Get a copy of the police report in case proof of the crime is needed when dealing with creditors.

In addition to filing a police report, it is a good idea to contact the U.S. Secret Service. Although the Secret Service generally investigates cases where the dollar loss is substantial, your information may provide evidence of a larger pattern of fraud requiring their involvement. Local offices are listed in the telephone directory or may be contacted online at www.treas.gov/usss.

Other Steps

Stolen mail. If an identity thief has stolen your mail to get a new credit cards, bank and credit card statements, pre-screened credit offers, or tax information, or if an identity thief has falsified change-of-address forms, report the theft to your local postal inspector. Contact your local post office for the phone number or use the Postal Service Web site at www.usps.gov/websites/depart/inspect.

Change of address on credit card accounts. If you discover that an identity thief has changed the billing address on an existing credit card account, close the account. When you open a new account, ask that a password be required before any inquiries or changes can be made on the account.

Bank accounts. If you have reason to believe that an identity thief has tampered with your bank accounts, checks, or ATM card, close the accounts immediately. Again, when opening new accounts, insist on password-only access to the accounts.

If your checks have been stolen or misused, place stop payments on them and request the major check verification companies to notify retailers using their databases not to accept these checks. The major check verification companies are:

National Check Fraud Service: 1-800-571-2143
SCAN: 1-800-262-7771
TeleCheck: 1-800-710-9898 or 927-0188
CrossCheck: 1-707-586-0551
Equifax Check System: 1-800-437-5120
International Check Services: 1-800-526-5380

Investments. If you believe that an identity thief has tampered with your security investments or a brokerage account, immediately report the problem to your broker or account manager and to the Securities and Exchange Commission (http://www.sec.gov/).

Phone service. If an identity thief has established new phone service in your name or is misusing your existing regular or cellular phone service, contact your service provider immediately and cancel the account. If you are having trouble settling the issue with the local phone company contact your local Public Utility Commission for local service providers or the Federal Communications Commission for long-distance and cellular providers at 1-888-CALL-FCC or http://www.fcc.gov/cgb/complaints.html.

Employment. If you believe someone is using your SSN to apply for a job or to work, call the Social Security Administration’s Fraud Hotline at 1-800-269-0271. Also call the SSA at 1-800-772-1213 to verify the accuracy of the earnings reported on your SSN. and to request a copy of your Social Security Statement. Follow up your calls in writing.

Driver’s license. If you suspect that your name or SSN is being used by an identity thief to get a driver’s license or a non-driver’s ID card, contact your Department of Motor Vehicles. If your state uses your SSN as a driver’s license number, ask to substitute another number.

Bankruptcy. If you believe someone has filed bankruptcy using your name, write to the U.S. Trustee in the Region where the bankruptcy was filed. A listing of the U.S. Trustee Program’s Regions can be found at www.usdoj.gov/ust. You should also file a complaint with the U.S. Attorney or the FBI in the city where the bankruptcy was filed.

Criminal records/arrests. If an identity thief creates a criminal record under your name, you will need to hire an attorney to help resolve the problem. The procedures for clearing your name vary between jurisdictions.

Protecting our personal information and our privacy is essential if we are to reduce the risk of identity theft. We need to design systems such that they do not rely on surrogate identities, i.e. identities of products that might be used by someone other than the expected user, because relying on such identification increases the potential for identity theft. Most of all, we need to educate our respective organizations and the public to the risks of identity theft and the countermeasures available. 

ABOUT THE AUTHOR

Chris M. Wright, CPP, is President of The Wright Group, a pre-employment screening and security consulting firm in California. She is a Regional Vice President for ASIS International and lectures across the country on Privacy and Identity Theft issues. Chris is a published author in the area of Workplace Violence and uses her knowledge of privacy to assist in handling cases of violence in schools and in the workplace.

riskVue | The webzine for risk management professionals
February 2003