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• What is ID Theft

• ID Theft Examples

• Common ID Scams

• How to Prevent ID Theft

• Reparing Your Credit History

Identity theft can be a terrifying experience and involves multiple parties, including your creditors, law enforcement, and the credit reporting bureaus. Fortunately there are resources you can turn to that will reduce your chances of becoming a victim, and if you are a victim, help restore your financial identity and credit.

How Criminals use Your Information

Using everyday items such as your driver’s license or Social Security number to assume your identity, an identity thief can:

• Open new bank accounts, and write bad checks.
• Establish new credit card accounts and not pay the bills.
• Obtain personal or car loans.
• Get cash advances.
• Set up cellular phones or utility services and run up bills.
• Change your credit card mailing address and charge on your existing accounts.
• Obtain employment.
• Rent an apartment, but avoid the payments, and get evicted.

How Criminals Steal Your Information

If you know what to look for and how it happens, you can minimize your overall risk of identity theft. Here are some warning signs to look for:

• Lost/stolen wallet or checkbook. The most commonly reported source of information used to commit fraud is a lost or stolen wallet or checkbook. Stolen wallets and checkbooks usually contain a number of credit and debit cards, in addition to other personal documentation. Using these items, a criminal can get enough information to obtain credit under the victim’s name, or sell the information to an organized crime ring.
• Dumpster diving. Criminals rummage through trash cans for pieces of non-shredded personal information that they can use or sell.
• Mail theft. Crooks search mailboxes for pre-approved credit offers, bank statements, tax forms, or convenience checks. They also look for credit card payment envelopes that have been left for postal carrier pick-up.
• Inside sources. Half of all identity fraud is committed by friends, family members, relatives, employees, and live-in caregivers with access to privileged information. Information such as personnel records, payroll information, insurance files, account numbers, or sales records can be great help to crooks.
• Imposters. Many have fallen victim to identity theft by individuals who fraudulently posed as someone who had a legitimate or legal reason to access the victim’s personal information. In the aftermath of hurricane Katrina, criminals posing as emergency workers obtained information from victims seeking financial aid.
• Documents in the home. Identity thieves can gain legitimate access into someone’s home and personal information through household work, babysitting, healthcare, friends, or roommates.
• Online data. In most cases, criminals get access to personal information by traditional methods, such as the ones outlined above, risks also exist online. Be cautious when sending information electronically over the Web. Account information sent through email, or online chat rooms, can easily be intercepted by thieves.

How to Protect Your Personal Data

• Order copies of your credit report at least once a year from each of the three major credit bureaus and ensure all of the information is accurate:
  
  
• Equifax 1-800-685-1111
• Experian 1-888-EXPERIAN (397-3742)
• Transunion 1-800-916-8800
  
  
• Monitor your accounts and statements frequently and thoroughly, ensuring that all activity is accurate. If your account statements are late, immediately contact your financial institution(s) to ascertain if and when the statements were mailed. If your institution offers online banking, check your account frequently and regularly, rather than waiting for monthly statements. Reporting fraud as soon as possible helps stop further occurrences of fraud.
• Always thoroughly tear or shred documents with personal information, such as pre-approved credit offers, which may contain account information, Social Security numbers, date of birth, etc. Shredding such documents protects you against “dumpster diving.”
• Always protect your account information. Don't write your personal identification number (PIN) on your ATM or debit card. Don't write your Social Security number and/or credit card number on a check.
• When using your ATM, cover your hand when entering the PIN number to protect the information from “shoulder surfers.”
• Carry only those pieces of identification you absolutely need, and keep them secure.
• Know your merchant. Ensure you know the person or entity to which you are giving information over the Internet, phone, or fax. Do not provide your personal information unless you have initiated contact with the merchant. Only do business with Internet companies that use a secure form to capture private information such as account numbers or credit card numbers.
• Discard unused instant credit offers, ensuring they are properly shredded.
• Fraud is a crime. If you suspect your personal information has been used to commit fraud, contact your financial institution and the authorities immediately. U.S. consumers should:
  
  
  • File a police report with their local police department and call the Federal Trade Commission at 1-877-ID-Theft.
  • Complaints can also be reported to: the Internet Fraud Complaint Center (IFCC). http://www.ic3.gov/
  • Contact the three credit reporting agencies to place a fraud alert on your record.
  • Maintain a log of all contacts you make with the authorities regarding the matter, including the name, title, phone number and police case number, in case future contact is required.

Online Security Tips

• Ensure your computer(s) are equipped with a security toolkit to help keep trespassers out. A security toolkit includes antivirus and virus detection software, personal firewalls, adware and spywareblocking software. Update the toolkit frequently, and periodically check your firewall settings. Install security patches issued by your software (operating system and browser) vendor. Update software applications as well as operating systems and browsers, and be sure to patch the entire suite of applications that have the same type of vulnerability operating system. Consider installing a Web browser toolbar to help protect you from known phishing websites. A number of Internet service providers (ISPs) offer toolbars to help identify fraudulent sites. Please contact your ISP to determine which is best for you. Always back up your data.
• Change your passwords periodically, using strong passwords that could not be easily guessed. Do not use names (like your mother’s maiden name) or dates (like your birthday) or your Social Security number (SSN).
• Always log off from your online banking session. Shut off/disconnect your computer from the Internet when not in use.
• Avoid purchasing products from online merchant or auction sites if the deal looks “too good to be true.” If it looks too good to be true, it probably is.
• Don’t click the link. If you are concerned about the authenticity of an email, contact your financial institution directly by phone. You may also go directly to your institution’s site by typing the URL in the browser. Should you choose to go directly to the site, check for indicators that the pages are secure. A secure site will have a padlock symbol at the bottom of the page and a URL that begins with “https” instead of “http.”
• Verify Online Security Certificates. If the certificate was issued by an independent certificate authority, due diligence has been performed on the business. If someone has cloned a site, the site will not have a certificate. If the certificate name does not match the site, do not use it and notify the institution. Note that “pharming,” DNS poisoning, cross-site scripting, and other evolving methods take advantage of software security deficiencies, so these verification methods cannot be considered fail safe.
• If you use a wireless network, deploy proper encryption, password protection and secure firewalls.
• Be suspicious of requests for personal information. Due to the increase of phishing and online scams, financial institutions have altered their practices and are unlikely to ask you for personal information in an email. Be especially cautious of “urgent” requests, as phishers try to excite or upset customers so they will react immediately.
• Visit your financial institution’s website online. Most now carry detailed information about security safeguards, how to protect yourself against fraud, and how to get help should a problem occur.
  

What to do if you are a Victim

• Place a fraud alert on your credit reports, and review your credit reports.
  Fraud alerts can help prevent an identity thief from opening any more accounts in your name. Contact the toll-free fraud number of any of the three consumer reporting companies below to place a fraud alert on your credit report. You need to contact only one of the three companies to place an alert. The company you call is required to contact the other two, which will place an alert on their versions of your report, too.

  • Equifax : 1-800-525-6285; www.equifax.com; P.O. Box 740241, Atlanta, GA 30374-0241
  • Experian: 1-888-EXPERIAN (397-3742); www.experian.com; P.O. Box 9532, Allen, TX 75013
  • Transunion: 1-800-680-7289; www.transunion.com; Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92834-6790
    
    
• Once you place the fraud alert in your file, you’re entitled to order free copies of your credit reports, and, if you ask, only the last four digits of your SSN will appear on your credit reports. Once you get your credit reports, review them carefully. Look for inquiries from companies you haven’t contacted, accounts you didn’t open, and debts on your accounts that you can’t explain. Check that information like your SSN, address(es), name or initials, and employers are correct. If you find fraudulent or inaccurate information, contact the consumer reporting companies to get it removed. Continue to check your credit reports periodically, especially for the first year after you discover the identity theft, to make sure no new fraudulent activity has occurred.
• Close the accounts that you know, or believe, have been tampered with or opened fraudulently. Call and speak to someone in the security or fraud department of each company. Follow up in writing, and include copies (NOT originals) of supporting documents. It’s important to notify credit card companies and banks in writing. Send your letters by certified mail, return receipt requested, so you can document what the company received and when. Keep a file of your correspondence and enclosures.
• When you open new accounts, use new Personal Identification Numbers (PINs) and passwords. Avoid using easily available information like your mother’s maiden name, your birth date, the last four digits of your SSN or your phone number, or a series of consecutive numbers.
• If the identity thief has made charges or debits on your accounts, or on fraudulently opened accounts, ask the company for the forms to dispute those transactions.
• For charges and debits on existing accounts, ask the representative to send you the company’s fraud dispute forms. If the company doesn’t have special forms, write a letter to dispute the fraudulent charges or debits. In either case, write to the company at the address given for “billing inquiries,” NOT the address for sending your payments.
• For new unauthorized accounts, ask if the company accepts the ID Theft Affidavit. If not, ask the representative to send you the company’s fraud dispute forms. If the company already has reported these accounts or debts on your credit report, dispute this fraudulent information.
  Once you have resolved your identity theft dispute with the company, ask for a letter stating that the company has closed the disputed accounts and has discharged the fraudulent debts. This letter is your best proof if errors relating to this account reappear on your credit report or you are contacted again about the fraudulent debt.
• File a report with your local police or the police in the community where the fraud took place. Then, get a copy of the police report, or at the very least, the number of the report. It can help you deal with creditors who need proof of the crime. If the police are reluctant to take your report, ask to file a “Miscellaneous Incidents” report, or try another jurisdiction, like your state police. Check with your state Attorney General’s office to find out if state law requires the police to take reports for identity theft. The Blue Pages of your telephone directory will have the phone number, or check www.naag.org for a list of state Attorneys General.
• File a complaint with the Federal Trade Commission. By sharing your identity theft complaint with the FTC, you will provide important information that can help law enforcement officials across the nation track down identity thieves and stop them. The FTC can refer victims’ complaints to other government agencies and companies for further action, as well as investigate companies for violations of laws the agency enforces.

You can file a complaint online at www.consumer.gov/idtheft. If you don’t have Internet access, call the FTC’s Identity Theft Hotline, toll-free: 1-877-ID-THEFT (438-4338); TDD: 202-326-2502; or write: Identity Theft Clearinghouse, Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580.

Be sure to call the Hotline to update your complaint if you have any additional information or problems.

Additional Steps

• Bank accounts. If you have reason to believe that an identity thief has tampered with your bank accounts, checks or ATM card, close the accounts immediately. When you open new accounts, insist on password-only access to minimize the chance that an identity thief can violate the accounts. In addition, if your checks have been stolen or misused, stop payment. You can contact the following major check verification companies to learn more about the services they provide in helping you track your stolen or misused checks.

  Company Name Phone Number
  SCAN 1-800-262-7771
  TeleCheck 1-800-710-9898 or 927-0188
  CrossCheck 1-707-586-0431
  Equifax Check Systems 1-800-437-5120
  International Check Services 1-800-526-5380
  If your ATM card has been lost, stolen or otherwise compromised, cancel the card as soon as you can and get another with a new PIN.

• Stolen mail. Often criminals steal your mail to get new credit cards, bank and credit card statements, pre-screened credit offers or tax information. Report the crime to your local postal inspector. Contact your local post office for the phone number for the nearest postal inspection service office or check the U.S. Postal Inspection Service website.
• Change of address on credit card accounts. If you discover that an identity thief has changed the billing address on an existing credit card account, close the account. When you open a new account, ask that a password be used before any inquiries or changes can be made on the account. Avoid using easily available information like your mother's maiden name, your birth date, the last four digits of your social security number or your phone number, or a series of consecutive numbers. Avoid using the same information and numbers when you create a PIN.
• Phone service. If an identity thief has established new phone service in your name; is making unauthorized calls that seem to come from - and are billed to - your cellular phone; or is using your calling card and PIN, contact your service provider immediately to cancel the account and/or calling card. Open new accounts and choose new PINs. If you are having trouble getting fraudulent phone charges removed from your account, contact your state Public Utility Commission for local service providers or the Federal Communications Commission for long-distance service providers and cellular providers (at 1-888-CALL-FCC).
• Employment. If you believe someone is using your SSN to apply for a job or to work, that's a crime. Report it to the Social Security Administration Fraud Hotline at 1-800-269-0271. Also call SSA at 1-800-772-1213 to verify the accuracy of the earnings reported on your SSN, and to request a copy of your Social Security Statement. Follow up your calls in writing.
• Driver's license. If you suspect that your name or social security number is being used by an identity thief to get a driver's license or a non-driver's ID card, contact your Department of Motor Vehicles. If your state uses your social security number as your driver's license number, ask to substitute another number.
  

Organizing Your Case

• Use the ITAC ID Theft Worksheet.
• Follow up in writing with all contacts you've made on the phone or in person.
• Keep copies of all correspondence you send.
• Write down the name of anyone you talk to, what he or she told you, and the date the conversation occurred.
• Keep the originals of supporting documentation, like letters to and from creditors; send copies only.
• Set up a filing system for easy access to your paperwork.
• Keep old files even if you believe your case is closed. Errors can reappear on your credit reports or your information can be re-circulated. Should this happen, you'll be glad you kept your files.
  

Resolving Credit Problems

Credit Reports. The Fair Credit Reporting Act (FCRA) establishes procedures for correcting mistakes on your credit report and requires that your report be made available only for certain legitimate business needs.

Under the FCRA, both the credit bureau and the organization that provided the information to the credit bureau (the "information provider"), such as a bank or credit card company, are responsible for correcting inaccurate or incomplete information in your report. To protect your rights under the law, contact both the credit bureau and the information provider. It's very important to follow the procedures outlined below. Otherwise you won't have any legal recourse if you have a future dispute with the credit bureau or an information provider about inaccurate information that should be blocked from your report.

First, call the credit bureau and follow up in writing. Tell them what information you believe is inaccurate. Include copies (NOT originals) of documents that support your position. If you don't have any paperwork from the creditor, send a copy of the police report and the ID Theft Affidavit. In addition to providing your complete name and address, your letter should clearly identify each item in your report that you dispute, give the facts and explain why you dispute the information, and request deletion or correction. You may want to enclose a copy of your report with circles around the items in question. Send your letter by certified mail, return receipt requested, so you can document what the credit bureau received and when. Keep copies of your dispute letter and enclosures.

The credit bureau's investigation must be completed within 30 days (45 days if you provide additional documents). If the credit bureau considers your dispute frivolous (which may mean it believes you didn't provide enough documentation to support your claim), it must tell you so within five business days. Otherwise, it must forward all relevant documents you provide about the dispute to the information provider. The information provider then must investigate, review all relevant information provided by the credit bureau, and report the results to the credit bureau. If the information provider finds the disputed information to be inaccurate, it must notify any nationwide credit bureau to which it reports, so that the credit bureau can correct this information in your file. Note that: disputed information that cannot be verified must be deleted from your file.

If your report contains erroneous information, the credit bureau must correct it. If an item is incomplete, the credit bureau must complete it. For example, if your file shows that you have been late making payments, but fails to show that you are no longer delinquent, the credit bureau must show that you're current.

If your file shows an account that belongs to someone else, the credit bureau must delete it. When the investigation is complete, the credit bureau must give you the written results and, if the dispute results in a change, a free copy of your report. If an item is changed or removed, the credit bureau cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness, and the credit bureau gives you a written notice that includes the name, address and phone number of the information provider.

If you ask, the credit bureau must send notices of corrections to anyone who received your report in the past six months. Job applicants can have a corrected copy of their report sent to anyone who received a copy during the past two years for employment purposes. If an investigation does not resolve your dispute, ask the credit bureau to include a 100-word statement of the dispute in your file and in future reports.

Second, in addition to writing to the credit bureau, write to the creditor or other information provider to tell them that you dispute an item. Again, include copies (NOT originals) of documents that support your position, like your police report and the ID Theft Affidavit. Many information providers specify an address for disputes. If the information provider then reports the disputed item(s) to a credit bureau, it must include a notice of your dispute. If you're correct that the disputed information is not inaccurate, the information provider may not use it again.
For more information, see How to Dispute Credit Report Errors and Fair Credit Reporting, two consumer publications from the FTC.

Credit Cards. In most cases, the Truth in Lending Act limits your liability for unauthorized credit card charges to $50 per card. The Fair Credit Billing Act (FCBA) establishes procedures for resolving billing errors on your credit card accounts. This includes fraudulent charges on your accounts.

To take advantage of the law's consumer protections, you must :

Write to the creditor at the address given for "billing inquiries," not the address for sending your payments. Include your name, address, account number and a description of the fraudulent charge, including the amount and date of the error. Send your letter so that it reaches the creditor within 60 days from when the first bill containing the fraudulent charge was mailed to you. If the address on your account was changed by an identity thief and you never received the bill, your dispute letter still must reach the creditor within 60 days of when the bill would have been mailed to you. This is why it's so important to keep track of your billing statements and immediately follow up when your bills don't arrive on time.

Send your letter by certified mail, return receipt requested. This will be your proof of the date the creditor received the letter. Include copies (NOT originals) of sales slips or other documents that support your position. Keep a copy of your dispute letter.

The creditor must acknowledge your complaint in writing within 30 days after receiving it, unless the problem has been resolved. The creditor must resolve the dispute within two billing cycles (but not more than 90 days) after receiving your letter.

For more information, see Fair Credit Billing and Avoiding Credit and Charge Card Fraud from the FTC.

Debt Collectors. The Fair Debt Collection Practices Act prohibits debt collectors from using unfair or deceptive practices to collect overdue bills that a creditor has forwarded for collection.
You can stop a debt collector from contacting you by writing a letter to the collection agency telling them to stop. Once the debt collector receives your letter, the company may not contact you again - with two exceptions: they can tell you there will be no further contact and they can tell you that the debt collector or the creditor intends to take some specific action.
A collector also may not contact you if, within 30 days after you receive the written notice, you send the collection agency a letter stating you do not owe the money.

Although your letter should stop the debt collector's calls and dunning notices, it will not necessarily get rid of the debt itself, which may still turn up on your credit report.

A collector can renew collection activities if you're sent proof of the debt. So, along with your letter stating you don't owe the money, include copies of documents that support your position.
If you're a victim of identity theft, include a copy (NOT the original) of the police report. If you don't have documentation to support your position, be as specific as possible about why the debt collector is mistaken.

The debt collector is responsible for sending you proof that you're wrong. For example, if the debt in dispute originates from a credit card you never applied for, ask for the actual application containing the applicant's signature. You can then prove that it's not your signature on the application. In many cases, the debt collector will not send you any proof, but will instead return the debt to the creditor.

For more information, see Fair Debt Collection from the FTC

ATM Cards, Debit Cards and Electronic Fund Transfers. The Electronic Fund Transfer Act provides consumer protections for transactions involving an ATM or debit card or any other electronic way to debit or credit an account. It also limits your liability for unauthorized electronic fund transfers.

It's important to report lost or stolen ATM and debit cards immediately because the amount you can be held responsible for depends on how quickly you report the loss.

If you report your ATM card lost or stolen within two business days of discovering the loss or theft, your losses are limited to $50.

If you report your ATM card lost or stolen after the two business days, but within 60 days after a statement showing an unauthorized electronic fund transfer, you can be liable for up to $500 of what a thief withdraws.

If you wait more than 60 days, you could lose all the money that was taken from your account from the end of the 60 days to the time you reported your card missing.

The best way to protect yourself in the event of an error or fraudulent transaction is to call the financial institution and follow up in writing - by certified letter, return receipt requested - so you can prove when the institution received your letter. Keep a copy of the letter you send for your records.

After receiving notification about an error on your statement, the financial institution generally has 10 business days to investigate. The institution must tell you the results of its investigation within three business days after completing it and must correct an error within one business day after determining that the error has occurred. If the institution needs more time, it may take up to 45 days to complete the investigation - but only if the money in dispute is returned to your account and you are notified promptly of the credit. At the end of the investigation, if no error has been found, the institution may take the money back if it sends you a written explanation.

For more information, see Electronic Banking and Credit, ATM and Debit Cards: What to Do If They're Lost or Stolen, two consumer publications from the FTC or call 1-888-CALL-FCC.

ID Theft Worksheet

Tthe ID Theft Worksheet to help you organize your efforts to notify lenders and law enforcement about the crime, and to go about restoring your financial identity.

• Get it here