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ID Theft: Strategies and Help for Fighting Back
Your personal and financial information can be as good as cash to a fraud artist. Here is a “to do” list for keeping your identity to yourself.
You know there is only one you. DNA analysis can even prove it scientifically. Even so, a crafty criminal may be able to “clone” you for purposes of committing fraud. With sufficient information, a con artist can become “you” and use your identity to order new credit cards, make counterfeit cards or checks, or otherwise go on a spending spree in your name. It’s called identity theft or ID theft, and it’s a serious problem we’ve written about frequently in FDIC Consumer News. But we believe identity theft is worth focusing on again. Here’s why.
First, despite the efforts of law enforcement, ID theft is becoming more sophisticated and the number of new victims is growing. In general, consumers are protected against liability for unauthorized accounts or transactions under federal and state law and by financial industry practices. However, if innocent victims of ID theft crime is not detected early, people may face months or years cleaning up the damage to their reputation and credit rating, and sometimes they lose out on loans, jobs and other opportunities in the meantime.
The evolution of ID theft includes the spread of fraudulent “phishing” e-mails. These are unsolicited e-mails purportedly from a legitimate source — perhaps your bank, utility company, well-known merchants, your Internet service provider or even a trusted government agency such as the FDIC — attempting to trick you into divulging personal information.
Another reason we are featuring ID theft again is that a new federal law — the Fair and Accurate Credit Transactions Act (FACTA) — is about to give you some powerful new tools to help fight this crime.
So, here is our latest “to do” list you can follow to minimize your chances of becoming a victim of ID theft.
1. Protect your Social Security number (SSN), credit card and debit card numbers, PINs (personal identification numbers), passwords and other personal information. Never provide this information in response to an unsolicited phone call, fax, letter or email — no matter how friendly or official the circumstances may appear.
In case your wallet gets lost or stolen, only carry the identification, checks, credit cards or debit cards you really need. The rest, including your Social Security card, are best kept in a safe place. Also, be extra careful if you have housemates or if you let workers into your house because they sometimes are in the best position to find personal information and use it without your knowledge.
Likewise, don’t pre-print your Social Security number, phone number or driver’s license number on your checks. “It’s too easy for someone who sees your check to copy this personal information and even sell it to an ID thief,” said Kathryn Weatherby, an Examination Specialist for the FDIC. Remember that you have the right to refuse requests for your SSN from merchants and service providers — they have other ways to identify you. And if your state puts Social Security numbers on driver’s licenses, find out if you can use another number.
2. Protect your incoming and outgoing mail. Chances are that your mail carrier will deliver a credit card or bank statement, an envelope containing a check, or other items that can be very valuable to a thief. Or perhaps you’ll put in the mail a check or papers containing account numbers or other personal financial information.
For incoming mail: Try to use a locked mailbox or other secure location, such as a P.O. box. If your mailbox isn’t locked or in a secure location, try to promptly remove mail that’s been delivered or move the mailbox to a safer place. And when ordering new checks, “ask about getting the boxes delivered to your bank branch instead of having them mailed to your home and running the risk of finding them out on your front stoop,” said Weatherby.
For outgoing mail containing a check or personal information: Deposit it in a U.S. Postal Service blue collection box, hand it to a mail carrier or take it to the post office instead of leaving it in your doorway or home mailbox. “A mailbox that holds your outgoing bills is a prime target for thieves who cruise neighborhoods looking for account information,” said Jeff Kopchik, an FDIC Senior Policy Analyst. “Even worse is putting up the flag on a mailbox to indicate there is outgoing mail sitting there, because that’s also an invitation for a thief.”
3. Keep your financial trash “clean.” Thieves known as “dumpster divers” pick through garbage looking for pieces of paper containing Social Security numbers, bank account information and other details they can use to commit fraud. Examples of valuable trash include insurance information containing your SSN, blank checks mailed by financial institutions with offers to “write yourself a loan,” canceled checks and bank statements.
Your best protection against dumpster divers? Before tossing out these items, destroy them, preferably using a “crosscut” shredder that turns paper into confetti that cannot be easily reconstructed. Also remember our suggestions for limiting the use of your Social Security number, which would lessen the likelihood it will be found in your personal papers at home.
4. Keep a close watch on your bank account statements and credit card bills. Monitor these statements each month and contact your financial institution immediately if there’s a discrepancy in your records or if you notice something suspicious, such as a missing payment or an unauthorized withdrawal. While federal and state laws may limit your losses if you’re a victim of fraud or theft, your protections may be stronger if you report the problem quickly and in writing. You also avoid the hassle and inconvenience of straightening things out.
Contact your institution if a bank statement or credit card bill doesn’t arrive on time. This mail, if missing, could be a sign someone has stolen your mail and/or account information and perhaps has changed your mailing address to run up big bills in your name from another location.
5. Avoid ID theft on the Internet. “Hackers” and scam artists are finding ways to steal private information transmitted over the Internet or stored on computer systems. You can do a lot to protect yourself while shopping, banking, e-mailing or surfing on the Web. For example, never provide bank account or other personal information in response to an unsolicited e-mail or when visiting a Web site that doesn’t explain how your personal information would be protected.
Phishing scams that arrive by e-mail typically ask you to “update” your account information. But don’t fall for this ruse. Legitimate organizations wouldn’t ask you for these details — they already have the necessary information or they can obtain it in other ways. Don’t respond to these e-mails and don’t open any attachments unless you independently confirm the validity of the request by contacting the legitimate organization the way you usually would, not by using the e-mail address, Web site or phone number provided in the e-mail. If you believe the e-mail is fraudulent, consider bringing it to the attention of the Federal Trade Commission (Page 4). And if you do open and respond to a phony e-mail, contact your financial institution immediately.
Take precautions with your personal computer. Among them: Install a free or low-cost “firewall” to stop intruders from gaining remote access to your PC. Download and frequently update security “patches” offered by your operating system and software vendors to correct weaknesses that a hacker might exploit. Use passwords that will be hard for hackers to guess. For example, use a mix of numbers, symbols and letters instead of your date of birth or last name.
Also, shut down your PC when you are not using it. “Don’t believe that you are safe if you merely log off the Internet,” said Eloy Villafranca, an FDIC Community Affairs Officer. “Hackers can still get into your computer as long as there is power going to the PC.”
To get more information about computer security and safeguarding personal information, visit the Federal Trade Commission’s Web site at www.ftc.gov/infosecurity. For more about avoiding phishing scams, see the new FDIC Web page on the subject at www.fdic.gov/consumers/ consumer/alerts/index.html, which includes links to past articles in FDIC Consumer News and to a new brochure from federal financial institution regulators called You Can Fight Identity Theft.
6. Exercise your new rights under FACTA to review your credit record and report fraudulent activity. Your credit report, which is prepared by a credit bureau, summarizes your history of paying debts and other bills. Credit reports are used by lenders, employers and others who, by law, have a legitimate need for the information.
For many years, you’ve had the right under federal law to obtain a free copy of your credit report in certain circumstances, including concerns about ID theft, so you can report a crime in progress. And under longstanding practices in the credit reporting industry, you’ve been able to request that a “fraud alert” be placed in your credit file if you suspect that a criminal is attempting to open new accounts in your name. But starting soon, FACTA expands your rights in these areas.
FACTA allows you to get one free credit report each year from each of the three major credit bureaus that operate nationwide —Equifax, Experian and TransUnion — with just a single phone call, letter or e-mail (see next page). This is a change from previous law because you will be entitled to your free copy even if you don’t suspect ID theft or any other problem with your credit report. Under FTC rules, free credit reports will be phased in over nine months, beginning in western states on December 1, 2004, and moving east with completion scheduled for September 1, 2005. (See the complete schedule at www.ftc.gov/opa/2004/06/ freeannual.htm.)
After you get your credit report, look for warning signs of actual or potential ID theft. These include mention of a credit card, loan or lease you never signed up for, and requests for a copy of your credit record from someone you don’t recognize (which could be a sign that a con artist is snooping around for personal information).
If you already are a victim of ID theft or you suspect you are a target, FACTA gives you specific legal rights to place a fraud alert in your credit files at all three major credit bureaus with a phone call or a letter to any one of their fraud departments. “These fraud alerts will help prevent an imposter from obtaining new credit in your name because, at a minimum, the lender will be required to make a reasonable attempt to verify the applicant’s identity,” explained Michael Jackson, an Associate Director of the FDIC’s Division of Supervision and Consumer Protection.
If you are a victim of identity theft, you also may have an “extended” fraud alert placed in your credit file instead of a basic alert. “An extended alert requires a lender to contact you and get your okay before authorizing any new account in your name,” explained FDIC Attorney Robert Patrick. “It also is effective for seven years instead of 90 days.”
To place an extended alert in your credit file, Patrick said you must submit your request in writing and include a copy of an ID theft report filed with a law enforcement agency (such as the police) or with the U.S. Postal Service.
FACTA also will enable military personnel called up to active duty to place an alert in their credit files so that lenders acting on loan applications can guard against possible ID theft.
Your personal and financial information can be as good as cash to a criminal. So, take ID theft seriously. Start by following our simple suggestions for keeping your sensitive information under wraps. “It’s a lot easier to rethink your habits and behaviors now,” said Jackson, “than to repair the damage after identity theft occurs.”
Steps to Respond to and Recover from Identity Theft
What are the steps I should take if I'm a victim of identity theft?
What is a fraud alert?
What is a credit freeze?
What is an identity theft report?
What do I do if the police only take reports about identity theft over the Internet or telephone?
What do I do if the local police won't take a report?
How do I prove that I'm an identity theft victim?
Should I apply for a new Social Security number?
What are the steps I should take if I'm a victim of identity theft?
If you are a victim of identity theft, take the following four steps as soon as possible, and keep a record with the details of your conversations and copies of all correspondence.
1. 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 only need to contact 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. If you do not receive a confirmation from a company, you should contact that company directly to place a fraud alert.
TransUnion: 1-800-680-7289; www.transunion.com; Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92834-6790
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
Once you place the fraud alert in your file, you're entitled to order one free copy of your credit report from each of the three consumer reporting companies, and, if you ask, only the last four digits of your Social Security number 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 Social Security number, address(es), name or initials, and employers are correct. If you find fraudulent or inaccurate information, get it removed. See Correcting Fraudulent Information in Credit Reports to learn how. When you correct your credit report, use an Identity Theft Report with a cover letter explaining your request, to get the fastest and most complete results.
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.
2. Close the accounts that you know, or believe, have been tampered with or opened fraudulently.
Call and speak with 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 Social Security number or your phone number, or a series of consecutive numbers.
If the identity thief has made charges or debits on your accounts, or has 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, use the sample 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, you can either file a dispute directly with the company or file a report with the police and provide a copy, called an “Identity Theft Report,” to the company. o If you want to file a dispute directly with the company, and do not want to file a report with the police, ask if the company accepts the FTC’s ID Theft Affidavit (PDF, 56 KB). If it does not, ask the representative to send you the company's fraud dispute forms. o However, filing a report with the police and then providing the company with an Identity Theft Report will give you greater protection. For example, if the company has already reported these unauthorized accounts or debts on your credit report, an Identity Theft Report will require them to stop reporting that fraudulent information. Use the cover letter to explain to the company the rights you have by using the Identity Theft Report. More information about getting and using an Identity Theft Report can be found here.
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.
3. File a complaint with the Federal Trade Commission.
You can file a complaint with the FTC using the online complaint form; or call the FTC's Identity Theft Hotline, toll-free: 1-877-ID-THEFT (438-4338); TTY: 1-866-653-4261; 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.
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.
Additionally, you can provide a printed copy of your online Complaint form to the police to incorporate into their police report. The printed FTC ID Theft Complaint, in conjunction with the police report, can constitute an Identity Theft Report and entitle you to certain protections. This Identity Theft Report can be used to (1) permanently block fraudulent information from appearing on your credit report; (2) ensure that debts do not reappear on your credit report; (3) prevent a company from continuing to collect debts that result from identity theft; and (4) place an extended fraud alert on your credit report.
4. File a report with your local police or the police in the community where the identity theft took place.
Call your local police department and tell them that you want to file a report about your identity theft. Ask them if you can file the report in person. If you cannot, ask if you can file a report over the Internet or telephone. See below for information about Automated Reports. If the police are reluctant to take your report, ask to file a "Miscellaneous Incident" report, or try another jurisdiction, like your state police. You also can check with your state Attorney General's office to find out if state law requires the police to take reports for identity theft. Check the Blue Pages of your telephone directory for the phone number or check www.naag.org for a list of state Attorneys General.
When you go to your local police department to file your report, bring a printed copy of your FTC ID Theft Complaint form, your cover letter, and your supporting documentation. The cover letter explains why a police report and an ID Theft Complaint are so important to victims.
Ask the officer to attach or incorporate the ID Theft Complaint into their police report. Tell them that you need a copy of the Identity Theft Report (the police report with your ID Theft Complaint attached or incorporated)to dispute the fraudulent accounts and debts created by the identity thief. (In some jurisdictions the officer will not be able to give you a copy of the official police report, but should be able to sign your Complaint and write the police report number in the “Law Enforcement Report” section.)
What is a fraud alert?
There are two types of fraud alerts: an initial alert, and an extended alert.
* An initial fraud alert stays on your credit report for at least 90 days. You may ask that an initial fraud alert be placed on your credit report if you suspect you have been, or are about to be, a victim of identity theft. An initial alert is appropriate if your wallet has been stolen or if you've been taken in by a "phishing" scam. With an initial fraud alert, potential creditors must use what the law refers to as “reasonable policies and procedures” to verify your identity before issuing credit in your name. However, the steps potential creditors take to verify your identity may not always alert them that the applicant is not you. When you place an initial fraud alert on your credit report, you're entitled to order one free credit report from each of the three nationwide consumer reporting companies, and, if you ask, only the last four digits of your Social Security number will appear on your credit reports. * An extended fraud alert stays on your credit report for seven years. You can have an extended alert placed on your credit report if you've been a victim of identity theft and you provide the consumer reporting company with an Identity Theft Report. An automated Identity Theft Report, such as the printed ID Theft Complaint available from this Web site, should be sufficient to obtain an extended fraud alert. With an extended fraud alert, potential creditors must actually contact you, or meet with you in person, before they issue you credit. When you place an extended alert on your credit report, you're entitled to two free credit reports within twelve months from each of the three nationwide consumer reporting companies. In addition, the consumer reporting companies will remove your name from marketing lists for pre-screened credit offers for five years unless you ask them to put your name back on the list before then.
To place either of these alerts on your credit report, or to have them removed, you will be required to provide appropriate proof of your identity: that may include your Social Security number, name, address and other personal information requested by the consumer reporting company.
As mentioned, depending on the type of fraud alert you place, potential creditors must either contact you or take reasonable steps to verify your identity. This may cause some delays if you're trying to obtain credit. To compensate for possible delays, you may wish to include a cell phone number, where you can be reached easily, in your alert. Remember to keep all contact information in your alert current.
What does a fraud alert not do?
While a fraud alert can help keep an identity thief from opening new accounts in your name, it’s not a solution to all types of identity theft. It will not protect you from an identity thief using your existing credit cards or other accounts. It also will not protect you from an identity thief opening new accounts in your name that do not require a credit check – such as a telephone, wireless, or bank account. And, if there’s identity theft already going on when you place the fraud alert, the fraud alert alone won’t stop it. A fraud alert, however, can be extremely useful in stopping identity theft that involves opening a new line of credit.
What is a credit freeze?
Many states have laws that let consumers “freeze” their credit – in other words, letting a consumer restrict access to his or her credit report. If you place a credit freeze, potential creditors and other third parties will not be able to get access to your credit report unless you temporarily lift the freeze. This means that it’s unlikely that an identity thief would be able to open a new account in your name. Placing a credit freeze does not affect your credit score – nor does it keep you from getting your free annual credit report, or from buying your credit report or score.
Credit freeze laws vary from state to state. In some states, anyone can freeze their credit file, while in other states, only identity theft victims can. The cost of placing, temporarily lifting, and removing a credit freeze also varies. Many states make credit freezes free for identity theft victims, while other consumers pay a fee – typically $10. It’s also important to know that these costs are for each of the credit reporting agencies. If you want to freeze your credit, it would mean placing the freeze with each of three credit reporting agencies, and paying the fee to each one.
You can find more information about credit freeze laws specific to your state by clicking here, including information on how to place one.
Who can access my credit report if I place a credit freeze?
If you place a credit freeze, you will continue to have access to your free annual credit report. You’ll also be able to buy your credit report and credit score even after placing a credit freeze. Companies that you do business with will still have access to your credit report – for example, your mortgage, credit card, or cell phone company – as would collection agencies that are working for one of those companies. Companies will also still be able to offer you prescreened credit. Those are the credit offers you receive in the mail that you have not applied for. Additionally, in some states, potential employers, insurance companies, landlords, and other non-creditors can still get access to your credit report with a credit freeze in place.
Can I temporarily lift my credit freeze if I need to let someone check my credit report?
If you want to apply for a loan or credit card, or otherwise need to give someone access to your credit report and that person is not covered by an exception to the credit freeze law, you would need to temporarily lift the credit freeze. You would do that by using a PIN that each credit reporting agency would send once you placed the credit freeze. In most states, you’d have to pay a fee to lift the credit freeze. Most states currently give the credit reporting agencies three days to lift the credit freeze. This might keep you from getting “instant” credit, which may be something to weigh when considering a credit freeze.
What does a credit freeze not do?
While a credit freeze can help keep an identity thief from opening most new accounts in your name, it’s not a solution to all types of identity theft. It will not protect you, for example, from an identity thief who uses your existing credit cards or other accounts. There are also new accounts, such as telephone, wireless, and bank accounts, which an ID thief could open without a credit check. In addition, some creditors might open an account without first getting your credit report. And, if there’s identity theft already going on when you place the credit freeze, the freeze itself won’t be able to stop it. While a credit freeze may not protect you in these kinds of cases, it can protect you from the vast majority of identity theft that involves opening a new line of credit.
What’s the difference between a credit freeze and a fraud alert?
A fraud alert is another tool for people who’ve had their ID stolen – or who suspect it may have been stolen. With a fraud alert in place, businesses may still check your credit report. Depending on whether you place an initial 90-day fraud alert or an extended fraud alert, potential creditors must either contact you or use what the law refers to as “reasonable policies and procedures” to verify your identity before issuing credit in your name. However, the steps potential creditors take to verify your identity may not always alert them that the applicant is not you.
A credit freeze, on the other hand, will prevent potential creditors and other third parties from accessing your credit report at all, unless you lift the freeze or already have a relationship with the company. Some consumers use credit freezes because they feel they give more protection. As with credit freezes, fraud alerts are mainly effective against new credit accounts being opened in your name, but will likely not stop thieves from using your existing accounts, or opening new accounts such as new telephone or wireless accounts, where credit is often not checked. Also, only people who’ve had their ID stolen – or who suspect it may have been stolen, may place fraud alerts. In some states, anyone can place a credit freeze.
What is an Identity Theft Report?
An Identity Theft Report is a police report with more than the usual amount of detail. The Identity Theft Report includes enough detail about the crime for the credit reporting companies and the businesses involved to verify that you are a victim—and to know which accounts and inaccurate information came from identity theft. Normal police reports often don’t have many details about the accounts that were opened or misused by identity thieves.
The printed copy of your ID Theft Complaint Form can provide additional details for the police report. The police are not legally required to use the FTC’s ID Theft Complaint Form as part of their report. Your police department may have another way to incorporate the details of your crime. In these cases, the police report by itself may serve as an Identity Theft Report. When you file your Identity Theft Report, the credit reporting companies will permanently block fraudulent information from appearing on your credit report. Filing an Identity Theft Report with the credit reporting companies or with the companies where the thief used your information should ensure that these debts do not reappear on your credit report. An Identity Theft Report can prevent a company from continuing to try to collect debts that result from identity theft, or sell those debts to others for collection. It also allows you to place an extended fraud alert on your credit report. The credit reporting companies may decline your Identity Theft Report if it does not contain enough detail for them to verify that you are a victim of identity theft. In that case, the credit reporting companies have certain timeframes for responding to your Identity Theft Report with requests for additional information.
Creating and using an Identity Theft Report may require two steps:
Step One begins with filing your report with a local, state, or federal law enforcement agency. These agencies may include your local police department, your State Attorney General, the FBI, the U.S. Secret Service, the FTC, or the U.S. Postal Inspection Service. Some state laws require local police departments to take reports, but there is no law requiring federal agencies to take a report.
In your report, you should give as much information as you can about the crime, including anything you know about the dates of the identity theft, the fraudulent accounts opened and the alleged identity thief. It may help you give the necessary level of detail if you file an online complaint with the FTC, and then ask your local police department to incorporate a copy of the printed ID Theft Complaint into its police report.
Step Two begins when you send the businesses involved and the credit reporting companies a copy of your Identity Theft Report, which you should do by certified mail, return receipt requested. The companies may ask you to give them more information or documentation to help them verify your identity theft. They have to make their request within 15 days of receiving your Identity Theft Report. The credit reporting company or business then has 15 more days to work with you to make sure your Identity Theft Report contains everything they need. They are also entitled to five days to review any information you give them. For example, if you give them information 11 days after they request it, they have until day 16 to make a final decision.
How do I get an Identity Theft Report? The officer taking your police report can attach or incorporate your ID Theft Complaint into their police report to add more detail. Ask the officer to give you a copy of the official police report that incorporates or attaches your ID Theft Complaint. In some places the officer will not be able to give you a copy of the official police report, but should be able to sign a copy of your ID Theft Complaint and write the police report number in the “Law Enforcement Report” section. Be sure to keep a copy of the police report number The police are not legally required to use the FTC’s ID Theft Complaint Form as part of their report. Your police department may have another way to include all the details of your identity theft information in their police report. In these cases, the police report by itself may serve as an Identity Theft Report.
Because the detailed Identity Theft Report is required for you to get many important protections, you may wish to use the Law Enforcement Cover Letter to explain to the police department how important it is for you to get a police report – as well as the legal protections that a detailed Identity Theft Report gives you.
How do I submit my Identity Theft Report to the credit reporting companies, or to businesses where the thief used my information? When you send a copy of your Identity Theft Report to the fraud departments of the three major credit reporting companies, include a copy of the credit reporting company cover letter, along with copies of your supporting documentation. Send your information by certified mail with return receipt requested. The mailing addresses for sending Identity Theft Reports to the three major credit reporting companies are on the cover letter. When writing to the fraud departments of each of the companies where the identity thief has committed fraud using your personal information, include copies of the Identity Theft Report, your supporting documentation, and the appropriate cover letter: for fraud on your existing accounts, or for fraud on new accounts. Always send this information by certified mail, with a return receipt requested.
The credit reporting companies have certain timeframes for responding to your Identity Theft Report with requests for additional information.
What do I do if the police only take reports about identity theft over the Internet or telephone?
The FTC ID Theft Complaint has a special section for police reports that are not filed face-to-face, to help you use it to supplement an automated police report. If you file a police report online or over the phone, complete the “Automated Report Information” block of the ID Theft Complaint. Attach a copy of any filing confirmation received from the police. If you have a choice, however, you should file your police report in person and not use an automated report. It is more difficult for the consumer reporting company and information provider to verify the information in an automated report, and they will likely require additional information and/or documentation.
What do I do if the local police won't take a report?
There are efforts at the federal, state and local level to ensure that local law enforcement agencies understand identity theft, its impact on victims, and the importance of taking a police report. However, we still hear that some departments are not taking reports. The following tips may help you to get a report if you're having difficulties:
* Provide the officer with a copy of the Law Enforcement Cover Letter that explains why the police report and the Identity Theft Report are so important to both victims and industry. * Furnish as much documentation as you can to prove your case. Debt collection letters, credit reports, a copy of your printed ID Theft Complaint, and other evidence of fraudulent activity can help demonstrate the legitimacy of your case. Provide the police a copy of "Remedying the Effects of Identity Theft," which shows that police reports are necessary to secure your rights. * Be persistent if local authorities tell you that they can't take a report. Stress the importance of a police report; many creditors require one to resolve your dispute. Remind them that consumer reporting companies will automatically block the fraudulent accounts and bad debts from appearing on your credit report, but only if you can give them a copy of the police report. In addition, a police report may be needed to obtain the fraudulent application and other records the company has. * If you're told that identity theft is not a crime under your state law, ask to file a Miscellaneous Incident Report instead. * If you can't get the local police to take a report, try your county police. If that doesn't work, try your state police.
Some states require the police to take reports for identity theft. Check with the office of your State Attorney General, which can be found at www.naag.org, to find out if your state has this law.
How do I prove that I'm an identity theft victim?
Applications or other transaction records related to the theft of your identity may help you prove that you are a victim. For example, you may be able to show that the signature on an application is not yours. These documents also may contain information about the identity thief that is valuable to law enforcement. By law, companies must give you a copy of the application or other business transaction records relating to your identity theft if you submit your request in writing, accompanied by a police report. Read more about getting information from businesses, and use this model letter to request this information.
Should I apply for a new Social Security number?
Under certain circumstances, the Social Security Administration may issue you a new Social Security number - at your request - if, after trying to resolve the problems brought on by identity theft, you continue to experience problems. Consider this option carefully. A new Social Security number may not resolve your identity theft problems, and may actually create new problems. For example, a new Social Security number does not necessarily ensure a new credit record because credit bureaus may combine the credit records from your old Social Security number with those from your new Social Security number. Even when the old credit information is not associated with your new Social Security number, the absence of any credit history under your new Social Security number may make it more difficult for you to get credit. And finally, there's no guarantee that a new Social Security number wouldn't also be misused by an identity thief.
Source: Federal Trade Commission
The new Fair and Accurate Credit Transactions Act (FACTA) requires financial institutions to take precautions against identity theft, including:
• Maintaining an ID theft detection program featuring “red flags” of possible fraud and procedures for preventing thefts. “Many banks already use sophisticated software systems to detect fraud but FACTA sets minimum standards for all financial institutions,” said Michael Jackson, an Associate Director of the FDIC’s Division of Supervision and Consumer Protection.
• Printing credit and debit card receipts that show no more than the last five digits of the card number or expiration date, a requirement scheduled to go into effect by the end of 2006. This provision applies to any entity that accepts credit and debit cards for transactions.
• Implementing procedures to prevent an ID thief from fraudulently filing an address change with a consumer’s credit or debit card issuer and soon thereafter requesting that an additional card be sent to that new address. “This scheme has been used in the past to make unauthorized charges before the victim is aware that a card has been sent to a fraudulent address,” said Jeff Kopchik, an FDIC Senior Policy Analyst.
• Following new security procedures for disposing of certain confidential information so that the details cannot be picked out of the trash or otherwise obtained by ID thieves.
In addition, the Identity Theft Penalty Enhancement Act of 2004 increases the criminal penalties for ID theft. The law creates a separate crime of “aggravated identity theft” subject to imprisonment and covering numerous violations, including abuses by employees at financial institutions, government agencies or other places where personal information is stored.
Source: FDIC
Watch Your Backside…On Your Credit Card
You’re about to use your credit card to purchase something over the Internet or the telephone and you’re asked to provide the three or four numbers printed on the back of the card. Is it a valid question and is it safe to respond? It depends on who’s asking. A merchant has a legitimate purpose for obtaining those numbers, but an ID thief can use them to commit fraud.
The numbers on the back of your credit card, often printed on the strip provided for your signature, are part of a new security code. The purpose is to verify that the person making a purchase online or over the phone — when the merchant cannot see the card — actually has the card in hand and is not someone else who simply knows the card number and expiration date.
“Unless a criminal already has your card or has previously copied these numbers from your card, there is no way to know the printed security code on the back,” said Janet Kincaid, FDIC Senior Consumer Affairs Officer. “That is why it is especially important to safeguard the information.”
Her suggestions: Try to be sure you are dealing with a legitimate Web site when providing credit card information online. Also, look for a logo of a padlock or other indication that card numbers are protected during Internet transmissions. In addition, only provide your credit card information when you originate a transaction, not in response to an unsolicited call or e-mail, which may be fraudulent. For more information about using and protecting the security code on your credit card, contact your card issuer.
Source: FDIC
A 10-minute educational video that provides an overview of identity theft and outlines the steps consumers can take.
Federal Trade Commission PDF's
I.D. Theft Affidavit
A Form to Report Identity Theft to Your Creditors.
Information Compromise: Guidance for Your Business
I.D. Theft: What's It All About
What to Do If Your Identity is Stolen
New 'Red Flag' Requirements for Institutions and Creditors
How Not to Get Hooked by a ‘Phishing’ Scam
What To Do if Your Personal Info is Compromised
Active Duty Alerts Help Protect Military Personnel From I.D. Theft
FTC
Social Security Fraud Hotline Information
Place a "Fraud Alert" on your credit reports, and review those reports carefully. Notifying one of the three nationwide consumer reporting companies is sufficient.
Close any accounts that have been tampered with or established fraudulently.
File a police report with local law enforcement officials. This is an essential step in claiming your rights.
Report your theft to the Federal Trade Commission, online, by phone, or by mail.
1-877-ID-THEFT (438-4338)
Identity Theft Clearinghouse, Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580
Get Your Free Annual Credit Report
Credit Bureaus
How to Initiate a Credit Security Freeze
Protecting Your Identity: Be Proactive
CBS News
Use Security When Sending Sensitive Information Online
GetNetWise.org
