09/ 04/ 2003
by Jeffrey Moses
The Federal Trade Commission reported earlier this week that more than 27 million Americans have been victims of identity theft in the past five years, and the numbers are increasing. Earlier this year, the FTC released its annual report detailing consumer complaints related to fraud. Identity theft again topped the list, accounting for 43 percent of the complaints. Altogether, the dollar loss from reported instances of fraud more than doubled from 2001 to 2002, jumping from $160 million to $343 million.
Identity theft involves the unauthorized use of private financial information, such as credit card numbers, bank account numbers, PINs, social security numbers, passwords, and other personal information. It is imperative today to guard personal information so it does not fall into the wrong hands.
Among the most common results of identity theft are unauthorized purchases on credit card accounts; withdrawal of funds from checking and saving accounts; the establishment and use of new credit card accounts and other lines of credit, using the stolen identity information; and the establishment of cellular service.
The following guidelines can minimize the chance that your company or personal financial information will be stolen and used:
Shred or destroy all financial information when discarding: bank, credit card and other financial information of all types; all credit card offers and letters that include personal information of any kind.
Do not write your social security number (SSN) on checks or other correspondence. Give your SSN only to authorized individuals. In general, give your SSN only to individuals or organizations that you call. Do not give it to anyone who calls you, unless you verify the person's identity. To do this, ask to call the person back before giving out personal information. Then, check the number you're calling to make sure that you're reaching a valid organization. Also, do not keep your SSN in your wallet.
Do not put your complete credit card account number on checks when paying your bill. Instead, put only the last four numbers.
When mailing your bills, do not leave them in your home mailbox. This makes it too easy for thieves. Mail from the post office.
Have the numbers of your credit card companies handy so you can call them if your cards are stolen. Also, immediately call the three national credit agencies to put a fraud alert on your SSN, name, and open credit accounts. This will prevent criminals from opening new lines of credit in your name. The numbers are:
- Equifax: 1-800-525-6285 (Call Equifax first because they normally also contact Experian and Trans Union to place a fraud alert for you.)
- Experian (formerly TRW): 1-888-397-3742
- Trans Union: 1-800-680-7289
When ordering checks, use initials instead of your first (and middle) name. If your checks are stolen, the thieves won't know how you sign your checks. It's important to make sure that your bank examines your signature when clearing checks.
Keep photocopies of everything in your wallet in case it is lost or stolen.
If your cards or wallet are stolen, report the loss to your credit card companies and file a report with the police in the area where the theft occurred. This will establish the date of the theft.
