Identity Theft Basics

You have most likely heard about identify theft or you or someone that you know may have been a victim of it already. Identity theft is a crime that occurs when someone wrongfully obtains and uses another person's identifying information, such as a name, a Social Security number (SSN) or a credit card number in a way that involves fraud or deception. Identity theft is usually committed for financial gain, such as to obtain credit, merchandise or services in the name of the victim.

The Identity Theft and Assumption Deterrence Act of 1998 makes identity theft a federal crime with penalties up to 15 years imprisonment and a maximum fine of $250,000. It also names the Federal Trade Commission (FTC) as a central agency to act as a clearinghouse for complaints, referrals and resources for assisting victims of identity theft.

Tips to Avoid Becoming a Victim of Identity Theft

The following tips can help minimize your risk of becoming an identity theft victim:

• Annually review your credit reports for accuracy
• Shred or destroy unwanted documents that contain personal information, including credit card offers
• Report lost or stolen credit cards immediately
• Memorize your SSN, passwords and personal identification numbers (PINs) - don't carry them with you
• Don't leave transaction receipts at ATM machines, at gas pumps, at banks or on store counters
• Don't disclose credit card or bank account numbers on a Web site unless the site offers a secure transaction, which is often indicated by a padlock symbol on the screen, or in the customer service information on the Web site
• Match your credit card receipts against your monthly bills and check your monthly bank statements for accuracy - some fraudulent transactions involve small dollar amounts
• Don't leave delivered mail in an unlocked mailbox overnight and put outgoing mail in US Postal Service collection boxes - locked mailboxes for residential use are becoming more common
• Never give out personal identifying information over the telephone or the Internet unless you initiated the contact
• Do not use easily available information like your mother's maiden name, your birth date, the last four digits of your SSN or your phone number for PINs or passwords

Steps to Take if You Are a Victim of Identity Theft

If you are the victim of identity theft, you should follow the steps below to minimize the damage:

• Contact the fraud departments of the major credit bureaus (Equifax, Experian and TransUnion) and request that a fraud alert be placed on your credit file.
• Close accounts (credit, bank, ATM and phone) that have been tampered with and open new ones with new PINs and passwords.
• File a police report with your local police or the police in the community where the identity theft took place.
• Contact the FTC at 1-877- 438-4338 or use the FTC's online ID Theft Complaint form.
• If the US Mail is involved, call your nearest Postal Inspection Service office or report identity theft on-line using the US Postal Inspection Service Identity Theft Complaint Form.
• If you suspect that someone else is using your SSN for work purposes, you should contact the Social Security Administration's Fraud Hotline to report the problem.
• If your personal checks have been lost, stolen or misused, stop payment and notify your bank immediately.

You may also wish to contact the major check verification companies and request that they notify all retailers who use their databases not to accept your checks.

• CheckRite - (800) 766-2748
• ChexSystems - (800) 428-9623 (closed checking accounts)
• CrossCheck - (800) 552-1900
• Equifax - (800) 437-5120
• National Processing Co. (NPC) - (800) 526-5380
• SCAN - (800) 262-7771
• TeleCheck - (800) 710-9898

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