Online Newsletter - August 2003

IDENTITY THEFT:

By Ronald T. Williams, USSS Ret.

Until about four or five years ago, if you had mentioned the term "identity theft" to someone, your words most likely would have been met with a look of bewilderment. Unfortunately, in the 21st Century that term has carved out a permanent home for itself in the lexicon of modern society. The theft or appropriation of a person's identity is now a reality, and unlike a simple theft of cash or personal property, its effects are difficult to correct, enduring, and can haunt a victim for years. A recent federal survey has determined that approximately 7 million Americans were victims of identity theft in 2002, which marks an almost 80% rise from previous statistics.

For those still unfamiliar with the term, identity theft involves the appropriation of information and the assumption of another's identity for the purposes of committing subsequent crimes for merchandise or financial gain. This can be accomplished in various ways, including but not limited to: obtaining personal information through a ruse phone call, from a mailbox or trash can, via personal use of the internet or one of the many "find anything on anyone" web-based search firms, re-routing your mail to a temporary P.O. box, or completing a pre-approved credit card application in your name.

The advantages to the perpetrators in this type of crime are many: the layer of insulation provided by the covert "white collar" theft, the natural lag time created by an apparent legitimate transaction, late follow-up by the victim due to the delayed billing cycles of credit cards, and careless attitudes of consumers regarding their personal information. Identity theft is also safer for thieves; with no witnesses to describe their physical attributes, little risk of being apprehended in the act, and the advantage of a system too large, cumbersome and multifaceted to effectively stop the activity in progress or shortly after the transaction, a thief has a much better chance for success and a low risk of apprehension. If an identity thief uses a stolen identity to make a purchase in person, there is still little risk of apprehension due to the fact that by the time the theft is detected there will likely be no memory of the transaction in the minds of those involved. Thieves employing identity theft tactics to accomplish their ultimate goals make a few quick hits and move on to the next identity and a whole new opportunity for riches, thereby further minimizing their exposure.

The growth of the Internet increases opportunities for criminal activity, which is not surprising. The epidemic of identity theft is a byproduct of the information age. Our increasing reliance upon electronic funds transfer and the growing trend toward a cashless society facilitates identity theft. Many years ago, the crime of identity theft was simply not possible due to our reliance upon cash for transactions. Prior to the advent and widespread use of credit cards, checking accounts, point-of-sale terminals, the Internet, telephone transactions, and other conveniences of modern society, it was just not possible to profitably appropriate someone's identity for the purpose of theft without great risk. It is highly unlikely that this trend will reverse itself. Law enforcement is reactive, preventative measures are usually slow to respond to a need, and as usual, criminals will continue to set the pace in exploiting technology. You must therefore protect yourself from becoming a victim of identity theft. Recently, both state and federal governments have been stirred to action, albeit slowly, enacting legislation aimed at identity thieves. With the unmistakable link to terrorism, and the current world situation, the result will likely be more laws aiding in prosecution, but not prevention. While technology may provide some answers in the years to come, for the time being this problem must be addressed on an individual basis.


CAN YOU BECOME A VICTIM?
If you have a driver license or state ID card, a Social Security number, a credit card, a checking account, an ATM card, and receive mail or make purchases using any of the above, you can become a victim of identity theft. Virtually everyone is vulnerable because most of the above items are more-or-less necessary to function in modern society. Generally, identity thieves can get the information they need, either personally, through an agent or partner, or as part of a network wherein others aid the 'team' effort by supplying the raw information from a position of perceived trust; inside a business or governmental entity entrusted with your information. Some of the more common sources of the necessary information for stealing another's identity include:

$B!|(J Ruse Telephone Calls and Internet Contacts
$B!|(J Mailboxes
$B!|(J Trash Receptacles
$B!|(J Receipts Left at Place of Purchase
$B!|(J Simple Internet Searches
$B!|(J Internet Investigative Services
$B!|(J Credit Reports
$B!|(J Theft of wallet or purse
$B!|(J Computer Hacking
 

Pre-approved credit card applications, new credit cards, billing statements, utility bills, DMV and Social Security Administration correspondence are all delivered to your mailbox, and can be taken right from your mailbox. Further, most of these pieces of mail have enough information about you to enable a criminal to apply for credit, make purchases, or secure loans in your name. If you have a freestanding mailbox, or any other unsecured mail delivery receptacle aside from a door slot, your mail can be stolen. With the amount of junk mail we receive today, much of our mail is thrown in the trash or recycle bin having never been opened. All those pre-approved credit card and mortgage applications, billing statements, and items of business correspondence are as good as gold to the identity thief. In recent years, concerns have been raised about such risks associated with computerized database search services, an industry that is widely used by both public and private sector entities to locate or verify the identity of individuals. A simple search for anywhere between $25.00 and $50.00 can yield personal information, ideal for the identity thief seeking to act in your name.

WHAT YOU CAN DO TO AVOID BECOMING A VICTIM
Unfortunately, there is nothing that will absolutely prevent you from becoming a victim of identity theft, unless you are prepared to live like the Unabomber. As long as you are a functioning member of society with all the trappings thereof, you remain vulnerable. There are however things you can do to minimize your risk and mitigate the damage done, should you become a victim.




$B!|(J Do Not Release Personal Information - Whether over the telephone or the Internet, safeguard your personal information and be suspicious of anyone seeking that information. Be sure you know who is asking for it, and for what purpose it is being sought.

$B!|(J Secure Your Mail - If you do not have a secure mailbox or door slot delivery, get one, or consider renting a post office box.

$B!|(J Use A Shredder - Invest in a small crosscut document shredder, and destroy all correspondence, statements, and other documents containing any personal information.

$B!|(J Do Not Leave Receipts, Anywhere! - Leave no records behind, be they ATM receipts, gas station receipts, credit card receipts, etc. This means do not throw them away at the transaction location, but take them home to shred.

$B!|(J Be Mindful Of Your Billing Cycles - Make note of when your bills usually arrive, and if one or more are late, call the issuing agency. If your mail has been rerouted as part of an identity theft scheme, there may be charges you did not make that would appear on a subsequent bill. Ask to review your billing address and recent charges.

$B!|(J Scrutinize Your Checking And Credit Statements - You should be familiar enough with your own buying patterns that an irregularity will almost announce itself. Examine your statements for any unfamiliar credit charges or checks. Look for high dollar purchases, out of state or area purchases, and regarding your checking account, high dollar checks and check numbers out of sequence.

$B!|(J Check Your Credit Report Regularly - Order your credit report from each of the major credit bureaus at least twice a year to review your activity. This is necessary, as contrary to popular belief they do not operate as one, sharing information. Each of your creditors can and may have different information.

$B!|(J Utilize Unusual And Unique Passwords - The temptation to simplify passwords to make them easier to remember is powerful, but resist using a relative's name, your address, birthdate, etc. Anything familiar to you is discoverable by a thief, and will be top of the list of possible passwords to try. Use a random combination of numbers and letters when possible, and use as many characters as permitted.

$B!|(J The Buck Stops With You - Don't rely on your creditors, the credit bureaus, or the organizations handing your information to protect you from identity theft. As awareness increases, there will likely be more safeguards built into the systems, but few are in place today. You must take an active role in ensuring that your risk is minimized, and to mitigate any damage to your credit by diligently evaluating reported information periodically.


WHAT IF YOU BECOME A VICTIM?
If you become a victim, your first action will likely be to call the police. This is a logical and necessary step; however do not be surprised if you know more about identity theft than the responding law enforcement officer. This is still an emerging crime, and in many cases comprehensive training has yet to be developed and disseminated to the street cops. You are your best advocate, and likely the only one equipped and willing to fight the battle to undo the damage done. Thus, much of the investigation, contact with involved parties, and follow-up will fall on your shoulders.

You should be familiar enough with your own buying patterns to recognize suspicious activity. If you suspect identity theft, contact the bank or creditor with whom the suspect transaction was made. Review the available information with them, and once you conclude that you have been victimized by identity theft based upon your examination and contacts, call the police. While the police may not be able to do much for you, depending upon their resources, the police report is an important step in that it provides necessary documentation. After establishing that you have been victimized, contact all your creditors, as well as your bank(s) to put them on notice, to freeze your accounts, and to preserve your right to contest fraudulent charges. It is also important to document all correspondence, telephone calls, and other contacts. While there is a growing understanding among creditors regarding this problem, some are less than helpful and may fight you. In the event you encounter a less than understanding creditor, your documentation will become invaluable. The federal government has created a website to assist consumers in fighting identity theft. The site (http://www.consumer.gov/idtheft/) features an identity theft affidavit that is accepted by many major creditors, and will aid in your quest to restore your credit and take back your identity.

Protecting your identity involves changing your behavior and habits, as well as maintaining awareness of your personal information and how it can be exploited. Be vigilant in protecting your identity, and guard it like you guard your cash. To the thief, it's just as good, if not better. For more information, contact Talon Executive Services, Inc.