| Moments after stepping out of the taxi, Rachel plunged | | | | Identity thieves will then take the personal information |
| through the entranceway of the hotel lobby eager to | | | | they have obtained about you and use it in a number |
| put behind what had been a terribly exhausting day. | | | | of different ways: |
| Flight delays due to weather had caused her | | | | * They will call your credit card issuer and, pretending |
| LAX-MDW-BWI trip to take nearly eleven hours to | | | | to be you, ask to change the mailing address on your |
| complete. All she could think of was taking off her | | | | credit card account. The imposter then runs up |
| shoes to relieve her aching feet and dipping them into | | | | charges on your account. Because your bills are being |
| soothing, warm bath water. | | | | sent to the new address, it may take some time |
| The line at the front desk was mercifully short. One | | | | before you realize that there is a problem. |
| clerk caught Rachel's attention and signaled her | | | | * They open a new credit card account, using your |
| forward she gave him her reservation information and | | | | name, date of birth and SSN. When they sue the |
| then dug out her American Express card for payment. | | | | credit card and don't pay the bills, the delinquent |
| As he stepped away to verify its authenticity Rachel's | | | | account is reported on your credit report. |
| eyes surveyed the lobby. | | | | * They establish phone or wireless service in your |
| "They've updated everything since I was last here", | | | | name. |
| she thought. Her concentration, clouded by fatigue, | | | | * They open a bank account in your name and write |
| was now on the mission style tables, chairs, and light | | | | bad checks on that account. |
| fixtures, which had replaced the heavy, wooden | | | | * They file for bankruptcy under your name to avoid |
| furniture previously occupying the lobby. "Here is your | | | | paying debts they have incurred under your name, or |
| card and room key, ma'am," the clerk interrupted | | | | to avoid eviction. |
| minutes later. Quickly, Rachel stuffed her card back | | | | * They counterfeit checks or debits cards, and drain |
| into her wallet, gathered her bags and whisked away | | | | your bank account. |
| to her room. | | | | * They buy cars by taking out auto loans in your name. |
| Rachel was a victim of identity theft that night, but did | | | | Fortunately for Rachel, American Express covered |
| not know it at the time. Had she kept a watchful eye | | | | her losses. Although she didn't find out about the theft |
| on what her clerk was doing instead of studying the | | | | until she reached her home in California, American |
| lobby, she might have noticed him switching cards on | | | | Express suspended her account when a number of |
| her. At the very least, she would have seen that the | | | | suspicious charges appeared and she couldnt be |
| card handed to her beneath her room key was not | | | | reached by them to verify the charges. Their fraud |
| her own. | | | | department left a message on her phone answering |
| Identity theft is an exploding problem that has | | | | machine instructing her to call them and, when she did, |
| increased exponentially in this technological age. | | | | Rachel was notified that someone else was using her |
| Particularly since the early 1990s thieves have been | | | | card. When she explained that she had the card in her |
| taking advantage of what we would consider every | | | | possession, she checked her purse and found a card |
| day transactions: writing a check at the grocery store, | | | | for someone else instead. |
| ordering merchandise via the internet, applying for a | | | | Visa, MasterCard and American Express absorb the |
| credit card, using your cell phone, and more. | | | | cost of fraud as long as they are notified by the |
| Each transaction requires you to share personal | | | | consumer [certain restrictions may apply check with |
| information: your bank and credit card account | | | | your card issuer for specific details]. Had Rachel used |
| numbers; your income, your Social Security Number | | | | a debit card, the story might have been much different. |
| (SSN); and your name, address, and phone numbers. | | | | Unlike a credit card, the debit card takes a direct hit on |
| An identity thief will lift some piece of your personal | | | | your bank account, meaning that you will have to |
| information and appropriate it without your knowledge | | | | absorb the loss. |
| to commit fraud or theft. One of the most common | | | | So, all is well with Rachel, right? Sure, American |
| methods is when the identity thief uses your personal | | | | Express overnighted a new card with a new account |
| information to open a credit card account in your | | | | number for Rachel to use on her next trip, but the |
| name. | | | | problem could very well have continued and deepened |
| The Federal Trade Commission is the arm of the | | | | had she not taken three more steps recommended by |
| federal government tasked with overseeing the | | | | the Federal Trade Commission: |
| problem of identity theft. A special hotline number | | | | First, contact the fraud departments of each of the |
| (1-877-IDTHEFT) was created for consumers to call to | | | | three major credit bureaus. |
| place your information in a database which is | | | | Tell them that you are a victim of identity theft. |
| accessible with other law enforcement agencies and | | | | Request that a "fraud alert" be placed in your file, as |
| private entities, including any companies about which | | | | well as a victim's statement asking that creditors call |
| you may complain. | | | | you before opening any new accounts or changing |
| Additionally, an ID Theft Affidavit a form you can use | | | | your existing accounts. This can help prevent an |
| to alert companies where a new account was opened | | | | identity thief from opening additional accounts in your |
| in your name can be filled out and given to the | | | | name. |
| company. This affidavit is available online to | | | | At the same time, order copies of your credit reports |
| consumers. | | | | from the credit bureaus. Credit bureaus must give you |
| Identity thieves can get your personal information in a | | | | a free copy of your report if your report is inaccurate |
| number of ways: | | | | because of fraud, and you make that request in |
| * They steal wallets and purse containing your i.d. and | | | | writing. Review your reports carefully to make sure no |
| credit and bank cards. | | | | additional fraudulent accounts have been opened in |
| * They steal your mail, including your bank and credit | | | | your name or unauthorized changes made to your |
| card statements, pre-approved credit offers, telephone | | | | existing accounts. |
| calling cards and tax information. | | | | Second, contact the creditors for any accounts that |
| * They complete a "change of address form" to divert | | | | have been tampered with or opened fraudulently. |
| your mail to another location. | | | | Creditors can include credit card companies, phone |
| * They rummage through your trash, or the trash of | | | | companies and other utilities, and banks and other |
| businesses, for personal data in a practice known as | | | | lenders. |
| "dumpster diving." | | | | Third, if possible, file a report with your local police or |
| * They fraudulently obtain your credit report by posing | | | | the police in the community where the identity theft |
| as a landlord, employer or someone else who may | | | | took place. Get a copy of the police report in case the |
| have a legitimate need for and a legal right to the | | | | bank, credit card company or others need proof of the |
| information. | | | | crime. Even if the police are unable to catch the thief, |
| * They get your business or personnel records at | | | | the report can be helpful when dealing with creditors. |
| work. | | | | In summation, identity theft is a problem that is causing |
| * They find personal information in your home. | | | | businesses and consumers billions of dollars per year. |
| * They use personal information you share on the | | | | As a result, higher interest rates and an increase in the |
| internet. | | | | cost of goods and services is passed on to |
| * They buy your personal information from "inside" | | | | consumers. So, do not be a victim protect yourself |
| sources. For example, an identity thief may pay a | | | | from identity theft by remaining alert especially when a |
| store employee for information about you that | | | | third party is handling your personal information. |
| appears on an application for goods, services or credit. | | | | |