Frequently asked questions about identity theft
By Bankrate.com
Identity theft is the fastest-growing
crime on the government's list of consumer fraud complaints for
the fourth consecutive year, according to the Federal Trade Commission.
Forty-two percent of all complaints in 2003 related to the theft
of personal information such as a Social Security number or credit
card information. Here are some of the more commonly asked questions
about this scary crime.
What's the first thing I
should do when I find out that I'm an identity theft victim?
Contact the fraud department of any one of the three
major credit bureaus and report that your identity has been
stolen. That agency will contact the other two credit-reporting
agencies. A "fraud alert" will automatically be placed
on each of your credit reports within 24 hours. The alert serves
as a notice that no new credit should be granted without your approval.
Not all creditors pay attention to these alerts. You need to be
vigilant that no new accounts are opened. Follow that by contacting
each of your creditors (credit card companies, mortgage lender,
etc). Explain what happened in writing. The Federal Trade Commission
offers an ID
theft affidavit that simplifies the process. Instead of filling
out a separate fraud packet for each creditor, you may fill out
a single fraud declaration and send signed copies to each creditor.
Most companies will accept the form, but when you contact each creditor,
ask if they will accept it. You may also call the FTC's Identity
Theft Hotline toll-free at 1-877-IDTHEFT (438-4338). It's very important
that you file a report with your local police department and perhaps
the law enforcement agency where the identity theft took place.
Get copies of the reports and send to all the creditors. For more
details, check out this Bankrate
story.
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Do I really have
to give my Social Security number at my doctor's office?
You can say no. While any business or agency can ask
for your number, few can actually demand it. Agencies that can demand
it are generally government related, such as motor vehicle departments,
tax departments and welfare departments. Because Social Security
numbers are required for transactions involving taxes, banks, brokerages,
employers, and the like also have a legitimate need for your number.
Most other businesses have no legal right to demand your number.
Always ask if they'll accept an alternative piece of identification.
To learn more about this subject, read Guard
your Social Security number.
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How can I protect
myself from identity theft?
Aside from getting a credit report at least once a
year to monitor your credit, you should always be alert when your
monthly financial statements arrive. Carefully read over your bank
statements and other creditor statements to make sure you recognize
all the items listed. Get a cross-cut shredder and shred bank statements,
credit card offers, or any other document with your financial information
on it. Mind your credit card receipts because some still list your
full account numbers and expiration dates. Here are 15
more ways to protect your identity.
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How does identity
theft happen?
All it takes is one slip (of paper) for an identity
thief to strike. The most obvious way to steal someone's identity
is to snatch a wallet. Thieves also comb the dumpsters of banks,
mortgage companies, restaurants and other businesses for receipts,
credit slips and applications. Skimming devices are also used to
take the encoded information on the magnetic strips and create new
accounts. Then there's shoulder-surfing, when thieves stand close
enough to see PIN numbers punched in by ATM or phone booth users.
And if you have a common name, your credit's more likely to get
mixed up with the other John Smiths out there. For more information
about how this can happen, check out this Bankrate
story.
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Should I consider purchasing an
identity theft insurance policy or a credit monitoring service?
If you've been the victim of identity theft and need to keep a
close eye on things like credit card and loan applications, or if
you just like to stay on top of your credit information, these products
and services are probably worth looking into. Just keep in mind
that the credit bureaus and the Federal Trade Commission can provide
some of the same services for free. For more information, check
out this story that explains what
to expect from these services.
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