id theft fraud prevention

John Goldman asked:


Identity theft is something that no one would ever want to experience as it is a case where the victim looses almost everything their financial status and even personal identity. Using everyday data such as your social security number and drivers license the id theft thieves can easily assume your identity to open new bank account, write bad checks, establish new credit card account, avail loans and even take cash advance on your name.

Additionally they might also set up cell phones or run up bills and utility services apart from just making charges on your previous account. The thieves can even gain access to your employment identity and rent an apartment over your identity. Just a single instance of this crime can negatively affect your credit score which can create a lot of problems when you need to avail financial help in the future.

Types of id theft

You can say it identity theft when someone else has sufficient information about you to stand up as you. The id theft criminals can use your information in different ways. There are way main types of id theft or the reasons for the theft. Firstly it can be for account takeover in which the criminals would use all your existing bank accounts including credit cards and run huge bills for you to pay.

The other common type is application fraud. With this type the criminal would take your information to open new accounts, which can take several days to detect as the address provided to the company would probably not be your real one.

How to prevent identity theft

Firstly you should know what you have which means getting ready of all the debit and credit cads you have with their contact numbers. Make sure you don’t carry more than 2 debit or credit cards with you. In case you would be around people such as the city center, keep your wallet safe and in less accessible place.  When using the ATM, using your hand as a shield when typing the PIN would be wise. There are several other things to consider to prevent identity theft

 Order a copy of your credit report every year and carefully review it. In case you find any suspicious activity make sure you immediately report it. You must also check your credit card and bank statements every month. When using your card in shopping malls or petrol pumps watch when it is swiped so that you ensure the clerk does not try to run it through skimmer which stores your information. Make sure you carry the receipt with you rather than just throwing it away. Buying a paper shredder can be an excellent and secure method to dispose all those financial junk mails and credit card receipts. This will help you ensure your personal and financial information is completely destroyed. When shopping online make sure you are providing your information to a secure shopping site by checking if they are SSL certified

Gerald

John Goldman asked:


Identity theft or fraud is the intentional appropriation for persona information of a person to impersonate them in a legal sense. Stealing identity of ape son enables thief to make a frightening number of personal and financial transactions but not in their own name which leaves the victim responsible for almost everything that might happen due to your identity theft.

However the FTC or Federal Trade Commission has kept a record of identity theft and surprisingly they also have the number of incidents being reported each year. Therefore the identity theft statistics taken recently has reveled that id theft has affected as many as 10 million people in US every year. Based on the identity theft statistics of FTC the losses to financial and business organizations have totaled around 53 billion dollar in a year.

Earlier statistics

These statistics for id theft also reveal that most common types of identity thefts are communications services fraud like utility services account for your information or opening a cell phone, credit card frauds and even loan and bank frauds.

The primary cause of identity theft for several years has been the low tech and good old fashioned analog crime where the impersonators searching through mailboxes, searching the garbage for any credit card receipts or discarded bank statements and snatching purses. However the rapid advancement in technology has actually seen an outbreak of sophisticated phishing scams. The identity theft statistics today expose these scams as the most dangerous of theft which uses both technical subterfuge and social engineering.

Identity theft had been first mentioned in the literature during 1990s and studies have showed that from 2001 to 2002 there was nearly 12 to 20 percent increase in the crime while from 2002 to 2003 the figure climbed up to nearly 80 percent. The Better Business Bureau conducted survey during 2006 which showed a decrease compared to previous figures.

However the identity theft statistics showed in Texas was along was nearly 700 percent increase in the cases during 2004 to 2005. According to the Better Business Bureau statistics it reported that in just six moths during 2004 there were nearly 3.5 million households affected by this crime. The statistics have always shown an increase since then with more number of people affected every year.

Current Statistics

In the year 2007, Consumer Sentinel which is a FTC database had registered above 780,000 complaints of identity theft and fraud crimes. The data was generated from different law enforcement agencies which are compiled by FTC. However the number of complaints during 2008 sent tot eh Consumer Sentinel database was above 1.2 million of cases from different reporting agencies.

This simply means that it showed a 50 percent increase in the overall identity theft cases compared to 2007 and 2008 data. The data for 2009 is however unavailable yet, but it has been predicted that there would be another shocking increase in the identity theft statistics of the year. This is simply because of the economic adversity such as current recession that generally corresponds to the increase in crime rate which also includes id theft in huge.



Stephen

Lisa Carey asked:


Yearly Reports of Identity Theft to the Federal Trade Commission:

In 2007 identity theft accounted for 36 percent of the 674,354 fraud and identity theft complaints (reported to the Federal Trade Commission.

In 2005 -255,565 cases of identity theft were reported to the FTC

In 2004 -246,847 cases of identity theft were reported to the FTC

In 2003 215,177 cases reported of identity theft were reported to the FTC

In 2001 CBS News reported that someone became the victim of identity theft every 79 seconds (CBSnews.com, 1/25/01)

Between 1997 and 2005 the Federal Trade Commission reported that over 3 million cases of fraud and identity theft were reported to over 1400 law enforcement agencies in 19 nations. Identity theft crimes are not limited to the United States but are committed world wide.

Facts every consumer should know:

- Credit card fraud (26%) was the most common form of reported identity theft followed by phone or utilities fraud; (18%), bank fraud (17%), and employment fraud (12%). Other significant categories of identity theft reported by victims were government documents/benefits fraud (9%) and loan fraud (5%). (Federal Trade Commission Complaint Data)

- the majority of cases go unreported to Federal or local authorities

- the most common age group affected by identity theft is 18-29

- the top 10 metropolitan areas affected by identity theft include: Phoenix, AZ; Las Vegas, NV; Miami, FL; San Francisco, CA; and Dallas, TX (2005)

- California had the most reported cases of identity theft with a total of approximately 45,000 cases of identity theft (2005)

- the most common method of retrieving information for use in identity theft is through lost or stolen wallets, theft of mail, dumpster diving, and information obtained through friends, family or consumer providers

- another common method of obtaining your information is by “stealing” it at a business that you may you frequent

New, Harder to Detect Form of Identity Theft

Synthetic identity theft occurs when bits and pieces of several people are used in order to create an entirely new identity. Information may come in the form of an address from one person, the social security number of another and employment or banking information from a third or fourth.

Your Damages resulting from Identity Theft:

In a study conducted of 173 victims of identity theft by The Identity Theft Resource Center specific damages were explored. In each case the victim’s damages included:

- an extended period of time to correct their credit status;

- 85% of the victims found out about the theft when they attempted to apply for a job or credit;

- victims are currently spending over 600 hours attempting to repair the damages to their credit

- victims are spending money in the approximate a amount of over $16,000 per victim to repair their credit

- it is taking longer to remove negative, incorrect or falsified information from their credit reports

- many victims equate the emotional impact of identity theft with that of a violent crime – in some cases similar to a rape as the violation can be that personal.

Identity theft is a serious crime. Damages result to individuals, banks, and businesses as well as families. Imagine going to purchase your new home to find out that your credit is damaged and now you are unable to. Imagine the time and money you will spend to correct the problems associated with identity theft. Millions of dollars and Hundreds of thousands of people in the United States and millions worldwide are affected each year by identity theft. Victims, both personal and business must use valuable time, effort and resources to correct the situation, which in some cases is beyond total repair. Damages are not only to your credit and your finances but also to your emotional, physical, and psychological well being.

Reporting suspected identity theft is essential to protecting yourself further and protecting others. Reports should be filed with local authorities, your State’s Attorney General’s office and the Federal Trade Commission. Consumers need to not only protect their information but by reporting efforts at identity theft may be able to stop it from happening in the future.

Consumers can report ID theft to the FTC by calling the agency’s toll-free number: 877-438-4338.



Pamela

Andrew Regan asked:


Many people will not experience a crime like identity fraud during their lifetime. However, the crime is not uncommon; most of us will at least know someone who has been a victim of ID theft, if we ourselves have not been. Because of this fairly high proliferation of identity fraud – particularly during times when the economy is tough – it is advisable that you get to know a little more about this crime, how to tell when it’s happening to you, and what to do about it.

The first step in identification is quite obvious, really. If you’ve had your bank or credit cards stolen or have lost them, you could become a victim. The same goes for entering your bank details on dodgy sites that do not have the small padlock indicating a seal of online security or have an untrustworthy URL when it should be straightforward. Prevention in these cases is easy: for lost or stolen cards, cancel them immediately. And as for online security, simply ensure that all websites you deal through are trustworthy and secure.

However, identity fraud can occur even when you’re being careful, and if you notice money disappearing from your account and being spent on things you know you didn’t buy then it is quite likely that you have had your bank details stolen. We all pay for this, eventually – in higher prices and increasingly expensive credit card terms, even if we ourselves are not affected by such crimes. That’s why it’s important to do your best to prevent becoming a victim to identity fraud.

What’s worse is that, although many banks are good natured about identity fraud, some will refuse to reimburse you should you be unable to prove that you did not buy what has appeared on your card. Therefore, insurance is important – on your cards and on other important possessions, like home contents insurance should the identity fraud prove to be an exceptionally bad case that can affect more than just your bank balance.

If you’re worried about online security, it may be wise to acquaint yourself with some of the most common fraud occurrences that happen online. This can particularly involve email accounts, which many trust unquestioningly when they should consider certain emails more carefully. For example, never give your details to anybody from another country claiming to wish to transfer funds into your account that you’d then pay back, keeping some for yourself. In addition, never trust any lottery win emails – especially if you never played in that draw! Finally, acquaint yourself with ‘phishing’ and watch out for it – it is the biggest email scam likely to succeed.

Identity fraud can be a scary and violating occurrence – so ensure that your cards are well looked after and that the websites you deal through have the https:// in the URL, as well as the security padlock demonstrating that they are safe. This could save you the stress, time and possible loss should you become a victim of this crime.



Dorothy

C.w. Linart asked:


In preparing to write a series of articles on the subject of identity theft, I waded through lot of statistics.  Each number worried me more than the last.  There was a lot that I did not know about this crime, even though I personally know people who have been victimized.

For example, it was news to me that only 20 percent of identity theft involves credit card fraud.  According to numbers recently released by the Federal Trade Commission, identity thieves use stolen information in a variety of ways.  Without giving criminals any new ideas, let me just say that becoming a victim of ID theft can mess up your whole life, not just your credit score.

Another surprising reality:  Only 11 percent of identity theft is committed by high-tech means.  In fact, 48 percent is committed by a person known to the victim.  Taken together these two pieces of information say that the secretary at your insurance agent’s office or your wife’s ne’er-do-well cousin is more likely to steal your identity than is some pimply hacker in former East Germany.  Even if you shred every piece of paper, always look over your shoulder at the bank, and touch a computer, you could still become a victim.  Unless you monitor everyone you do business with (and all their employees) and every person you know, you are vulnerable.

Identity theft become so common and continues to grow because it is an easy crime to commit and a difficult one to catch.  Incidents of fraud commited by persons using stolen identities increased by 22 percent between 2007 and 2008 alone. As a matter of fact, the occurence of identity theft has risen steadily for ten years.  With the economy being what it is, a continuation of this trend seems likely.  

People who commit this crime are not your standard criminal.  Often they see ID theft as almost a “victimless crime” since recent fraud protection legislation puts most of the financial responsibility on lenders.  Criminals — many of whom are just desperate — move quickly once they have your information.  The average fraud takes place within a week of the stealing of personal information.

The damage happens fast, but repairing it takes an average of 70 aggravating hours.  Sometimes the damage is never undone completely.  Some victims do not find out that they are victims until months or years after the criminal has stolen their identity.  Sometimes the IRS audits a victim for income earned by the criminal, perhaps a felon who used the victim’s identity to get a job.  Other victims get a rude awakening when it turns out that the thief has committed other crimes using their identity.  Can you imagine learning about a criminal record (yours) that you had no idea existed?  It happens.

Prevention is the best medicine.  Identity theft is a lot like a disease in that preventing it is preferable to treating it.  If you  are unlucky enough to get the disease, early diagnosis is essential to successful treatment.

That brings me to a bit of good news: Tools have been developed to help you protect yourself.  Look for those in a future article, or just click the link at the bottom of this article to try it for yourself for free.

Whatever you do, do not take this lightly!  If you have anything to lose, someone is trying to take it.



Edna

Cathy Taylor asked:


Identity thieves take advantage of everyday opportunities to discover your personal information and use it to commit fraud or other crimes. The good news is a victim of identity theft has more options today than ever before. According to the Federal Trade Commission (FTC), there are four important actions you can take to minimize the credit damage caused by circumstances beyond your control.

1. Contact any of the three major credit bureaus. Speak to someone in the fraud department and request that a fraud alert be placed on your credit report. As soon as one credit bureau confirms your fraud alert, the other two will automatically place one on your report as well. With a fraud alert in place, creditors must contact you before opening any new accounts in your name or changing any details of your existing accounts.

Then request a free copy of your credit report from each one. Review all of your credit information looking for unauthorized accounts, charges, or changes. Check the accuracy of your name, address, phone number, Social Security number (SSN), past employers, and any other personal information. Request any inaccuracies be corrected by notifying the bureaus by phone and follow up in writing by using certified mail, return receipt requested, so you will have documentation of all requests and responses by the bureaus. The addresses for each bureau are listed at the end of this article.

Continue to check your reports every few months, especially in the first year after you have lost your personal information.

2. Contact the creditors for the accounts that have been altered or opened without your permission. This includes bank accounts, credit card companies, lenders, utilities, phone companies, Internet service providers, and any other services that may be opened fraudulently. Contact the company’s fraud department b phone and follow up with a letter.

The FTC offers the “ID Theft Affidavit” to dispute new accounts, available at www.ftc.gov . To dispute charges on existing accounts, request the company’s fraud dispute forms.

If you suspect that a thief has been passing bad checks in your name, close the account immediately and notify your bank. Contact the major check verification services and ask that the retailers who use their databases stop accepting your checks for purchases. To find out if an identity thief has been writing checks in your name, call SCAN at 1-800-262-7771. The three major check verification services are:

• TeleCheck – Call 1-800-710-9898 or 927-0188.

• Certegy, Inc. – Call 1-800-437-5120.

• International Check Services – Call 1-800-631-9656.

3. The third step to take if you believe you are a victim of identity theft is to file a police report. Request a copy of the report for your records and to send to creditors for verification of the crime. Unfortunately, 61% of victims in 2004 did not notify the police of identity theft crimes.

4. Finally, file a complaint with the FTC to help law enforcement across the country track identity thieves and catch them. You will also be referred to other useful government agencies and consumer organizations to help you recover from identity theft. Contact the FTC in any of the following ways:

• Call the FTC’s Identity Theft Hotline at 1-877-IDTHEFT (438-4338);

• Write Identity Theft Clearinghouse, Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580;

• Or visit www.consumer.gov/idtheft .

5. If you have been turned down for a loan, lost a job, or possibly had to pay significantly more interest fees because damage to your credit score due to circumstances beyond your control, you may have a credit damage claim. Now with a newly developed process called Credit Damage Measurement, you can measure the financial loss you have sustained and as a result, receive fair compensation.

These five steps should resolve most of your credit problems after becoming a victim of identity theft. However, stay alert for new occurrences. Review your credit report every year and report any problems to creditors immediately both by phone and in writing. With diligence and a little patience, you can recover your good name.

As promised, here is the location and contact information for he three credit bureaus to report fraud:

• Equifax – Call 1-800-525-6285; write P.O. Box 740241, Atlanta, GA 30374-0241; or visit www.equifax.com for more information.

• Experian – Call 1-888-EXPERIAN (397-3742); write P.O. Box 9532, Allen, TX 75013; or visit www.experian.com for more information.

• TransUnion – Call 1-800-680-7289; write Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92834-6790; or visit www.tuc.com for more information.



Lonnie