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