Identity theft: The crime that keeps on taking
By Bobbi Mlynar (Contact)
Wednesday, December 26, 2007
When it comes to fraud and identity theft, a local banker recommends you PASS on it.
“Protect, Alert, Shred and Scan,” said Karen Sommers, vice president of marketing for ESB Financial.
Consumers need to Protect their credit card, Social Security and other account numbers, be Alert to leaving personal information available to criminals, Shred unneeded documents containing account information, and Scan receipts, statements, and other account information regularly.
Sommers said that by 2005, the latest statistics available, about 8.3 million American adults had fallen victim to identity theft.
The problem, the fastest-growing crime in the country, often creates more headaches and time-consuming documenting chores than it does actual loss.
Lyon County Sheriff Gary Eichorn said in an interview earlier this year that when thieves assume someone else’s identity and use that person’s credit cards, a loss limit often comes into play for the victim. However, the confusion caused by the blended identities can go on much longer.
“But the problem is, your credit is destroyed for maybe three or four years,” Eichorn said. “It’s not that you’ve lost (significant money), but it just takes a long time to recover.”
Credit card and insurance companies, when applicable, require victims to make police reports for their records, and those are relied on for official record even years later.
“It just goes on and on, every time you try to do something,” Eichorn said. “It just wrecks status in the credit industry.”
Eichorn cautioned the public to use common sense about making personal information available to the public. People may not realize that putting photos, cities or street addresses, and other data on Internet communities, like myspace.com, can be an invitation for identity theft.
“There’s 400,000 people on that site and they’re not all good people,” Eichorn said. “They’re just waiting for a victim.”
Raising public awareness of potential methods of theft and educating consumers about them provides the greatest opportunity to prevent such thefts, Sommers said.
“An educated consumer is the key,” she said. “Vigilant monitoring of your personal information and knowing whom you are doing business with are two of the best ways to avoid becoming a victim.”
Large shred boxes are available at ESB for clients to use, to eliminate one source of account numbers for criminals. Arrangements need to be made to shred large amounts of documents.
“You don’t just throw things out that have your names on them,” Sommers said.
Without shredding or thoroughly tearing, account numbers and Social Security numbers can become easy pickings for criminals intent on grabbing a new identity.
Sommers said that the federal Medicare system unwittingly has made Social Security numbers available to many people who deal with retirees on Medicare.
“Well, their Social Security number is their Medicare plan (number),” Sommers said.
People on Medicare must have their cards available and, therefore, continually carry their Social Security numbers with them, despite the safety admonition not to.
Sommers said that a Medicare official, who graduated from Emporia State University, told her that Medicare is trying to remedy the situation, but it will be expensive and cannot be done immediately.
Kim Botkin, fraud specialist for the bank, said that consumers can have “fraud flags” put on their credit reports to stop some fraud attempts.
“They are supposed to contact you before any new credit is established in your name,” Botkin said.
She also recommended utilizing credit reports provided by three major reporting agencies: Experian, Equifax and TransUnion.
“One of the most important things we recommend is just reviewing your credit report annually at a minimum,” she said.
Sommers added that consumers can get one free credit report from each agency every year.
The Federal Trade Commission Web site states that free credit reports also may be had at www.annualcreditreport.com, or by calling 877-322-8228, or by mail at: Annual Credit Report Request Service, PO Box 105281, Atlanta, GA 30348-5281.
“Offers for free credit reports from any other source may be a scam,” the FTC report said.
And even the FTC and the Fair Credit Reporting Act could not prevent some companies from turning “free” credit reports into a lucrative, but fraudulent, business.
In August 2005, the FTC announced it had filed a lawsuit and simultaneously reached a settlement with two companies that were accused of “deceptive and misleading” claims about free credit reports.
Consumerinfo.com, a subsidiary of the credit bureau Experian, and freecreditreport.com deceived consumers, the FTC Web site reported, by failing to mention they were automatically signing up for credit report monitoring services and would be charged $79.95 if they did not cancel within 30 days.
The FTC also charged that freecreditreport.com failed to inform consumers that it was not associated with the official annual free credit report program established through the Fair Credit Reporting Act.
Consumers who were drawn to those companies’ Web sites through advertisements were required to supply considerable personal information, in addition to a valid credit card number. When memberships were not cancelled with the services, credit cards were charged.
Some consumers were entitled to refunds.
While there are no guarantees against becoming a victim of identity theft or fraud, consumers can help protect themselves by taking a few simple precautions:
- Never carry your Social Security card or its number unless you really need it, such as for a job interview.
- Don’t reveal account numbers if talking on a cell phone when other people can hear you.
- Keep an eye on your credit card at all times. Don’t let a clerk or accomplice distract you while it could be swiped through a second scanner that records your information.
- Shred any credit card receipts you don’t need, or documents that contain bar codes or sensitive data.
- Watch for timely arrival of monthly statements, bills, and any other item that usually arrives in the mail around an expected time.
- Mail bills inside the post office if the box outside already is full.
- Reconcile checking account statements each month and check for unauthorized transactions.
- Report any suspicious inquiries or unauthorized account transactions to your bank immediately.
- Never give out a checking account number unless it is a call that the consumer has initiated.
- Reveal checking account information only to businesses known to be reputable.
- Shred or tear up cancelled checks and deposit slips before discarding them.
- Notify your bank if you don’t receive your checks in a reasonable time.
- Use dark ink; never use light colors or pencil that can be easily erased or covered.
- Don’t leave spaces blank on the payee or amount lines on checks.
Sources: American Bankers Association and Federal Trade Commission
For more information, call the FTC consumer hotline, 202-326-3457.
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