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Identity theft again tops the list
of consumer complaints, according to a new report from
the Federal Trade Commission. Frank W. Abagnale, a
reformed thief, is a respected authority on identity
theft and other forms of fraud. His book, "Catch Me If
You Can," which details his criminal escapades, is the
latest Steven Spielberg movie and stars Leonardo
DiCaprio as Abagnale. Frank Abagnale wrote this
commentary for Bankrate.com.
Identity theft
is one of those things you're probably not very
concerned about if it hasn't happened to you. But, in my
career, I don't know of any crime that's easier -- and
easier to get away with -- than identity theft.
In 2001, there were approximately 500,000
identity theft victims; that's people who actually filed
a police report. It cost banks and credit-card companies
about $5 billion because they ultimately pick up the
tab.
But the consumer doesn't get away scot-free.
The average victims will spend $1,374 and 175 hours
cleaning up their credit reports. That's a great deal of
time and money out of their own pockets.
It's so
simple to assume someone's identity today. If you go to
the grocery store and write a check for $52, the check
has your full name and address, and maybe your phone
number. It also has the full name and address of the
bank where the check is drawn, as well as your account
number. Maybe the clerk asks for your driver's license
number, which in 19 states is your Social Security
number.
So, they write your Social Security
number on the face of the check, then they ask for a
date of birth and a work phone number. Now they can call
and find out where you're employed.
Hundreds of eyes
Hundreds of
people can see this check: people at the grocery store
and the check-clearing house. Then it goes back to the
payee bank, and if you don't get your checks in your
statement, it goes to a company that shreds them. (We
hope they get shredded and don't make copies.) So much
information on just that little piece of paper, and
that's just one way.
ID theft started years ago
with, "If I can get enough information, I can apply for
a Visa. I'll use the card for two weeks and throw it
away." But now it's, "If I can get enough information, I
can get a cell phone, I can get a car, a mortgage, I can
go to work for a company under contract labor and have
somebody else pay the taxes."
Criminals realize
it's the simplest scam in the world. No one has to see
your face or know who you are.
Only amateurs hack
into computers; pros hack into people. If I want a
database in a bank, I'm not going to break into their
database when all I have to do is sit in front of a bank
where people are smoking, walk up to someone and ask
where they work in the bank. Then I say, "How would you
like to make a lot of money? Give me this information
off the screen and I'll give you $5,000."
If you
did that to 10 people 25 years ago, two would say yes
and eight would report you. People had more ethics and
character then. Now, if I can do it and get away with
it, it's OK. It's a lot easier to approach someone and
get the information than break into the
database.
We live in a time when if you make it
easy to steal from you, chances are someone
will.
Consumers have to be much smarter.
10 tips to prevent Identity
Theft
Identity thieves rob more than 500,000
Americans every year. These steps will help you reduce
your risk of identity theft.
1. Guard that Social
Security number
The most important step is to guard
your Social Security number -- it is the key to your
credit report and banking accounts and is the prime
target of criminals. Do not print your Social Security
number on your checks. After applying for a loan, credit
card, rental or anything else that requires a credit
report, request that your Social Security number on the
application be truncated or completely obliterated and
your original credit report be shredded before your eyes
or returned to you once a decision has been made. A
lender or rental manager needs to retain only your name
and credit score to justify a decision.
2.
Monitor your credit report
Credit reports can alert you to
activity in your financial records. A monitoring
service, such as
Privacy
Guard ,
will notify you whenever someone applies for credit in
your name or checks your credit history. You then can be
proactive; call the person and ask, "Why are you
checking my credit?" It might be a landlord or employer;
it might be legitimate.
3. Buy a shredder and use
it
Indentity thieves may use your garbage to obtain
personal information. Shred all old bank and credit
statements, as well as "junk mail" credit-card offers,
before trashing them. Use a crosscut shredder -- they
cost more than regular shredders but are
superior.
4. Remove your name from
marketing lists
The three credit-reporting
bureaus -- Equifax, Experian and TransUnion -- all
maintain marketing lists that may contain your
information. Contact the agencies to remove your name
from the lists. You also should add your name to the
name-deletion lists of the
Direct Marketing
Association's
Mail Preference Service and Telephone
Preference Service used by banks and other marketers.
Removing your name from these lists reduces the number
of pre-approved credit offers you receive.
5.
Watch what you carry in your wallet
Do not keep your
Social Security card in your wallet or carry extra
credit cards or other important identity documents
except when needed. These documents can give thieves
ready access to your accounts.
6. Keep duplicate
records
Place the contents of your wallet on a
photocopy machine. Copy both sides of your license and
credit cards so you have all the account numbers,
expiration dates and phone numbers if your wallet or
purse is stolen.
7.
Mail payments from a safe location
Do not mail bill payments and checks from
home. They can be stolen from your mailbox and washed
clean in chemicals. Take them to the post
office.
8. Monitor your Social
Security activity
Order your Social Security
Earnings and Benefits statement
once a year to check
for fraud.
9.
Monitor your credit-card activity
Carefully examine your credit-card
statements for fraudulent charges before paying them. If
you don't need or use department-store or bank-issued
credit cards, close the accounts.
10. Know who
you are talking to
Never give your
credit-card number or personal information over the
phone unless you have initiated the call and trust that
business.
Sam Rush
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