by AJ McCreary, PICurrent Assistant Producer
**Editors Note** Today we continue our look at internet scams and identity theft. You can find our previous posts here and here. Our sister site, The Beehive, also has a great section on protecting yourself from identity theft.
Courtesy of d70Focus
In today’s world, we are all public beings. Our names and pictures can be found all over the web on networking sites, through Google, and with email or instant messenger. In addition, many people bank and shop online. Though the web can be a safe and time saving resource, it can play a part in making you vulnerable to credit fraud.
Identity theft or Credit Fraud occurs when someone uses your personal information;
- name
- Social Security number
- bank information
- or credit card number
without your permission to commit fraud or other crimes. Sadly this is a rising problem in our fast paced society.
- The Federal Trade Commission (FTC) estimates that as many as 9 million Americans have their identities stolen each year.
- The average amount of fraud per victim was $5,720
Talking to one young woman, Erica, she first learned her personal finances had been tampered with when “I went to check my bank account and it was in the negative $500”.
In many cases, if someone gets your bank information, they can quickly do more damage than just wipe out your bank account. One person, who did not want to be identified, told me “She (the girl that stole the card) already called the bank and they had given her some of my information and she applied for a credit card, which they approved.”
- Accounts you didn’t open and withdrawals that you can’t explain
- Fraudulent or inaccurate information on your credit reports
- Failing to receive bills or mail could mean an identity thief has changed your billing address to cover his tracks
- Receiving credit cards you didn’t apply for
- Being denied credit, or offered less favorable credit terms for no apparent reason
- Getting calls or letters from debt collectors or businesses about merchandise or services you didn’t buy
Elise Laymon, a manager for a national bank, explained that identity theft issues are a very common problem, and “we (the bank) see way too much of it”
She gave some tips to protect your self:
- Protect your Social Security number
- Treat your trash and mail carefully
- Be on guard when using the Internet, she advises using a separate account just for internet and travel purposes that way if you account is compromised it can be closed quickly without causing as much damage.
- Select difficult passwords (numbers and letters)
- Verify sources before sharing information
- Safeguard your purse and wallet
- Store information in secure locations
- Avoid having statements sent you’re your home, if your mail is stolen expect your identity to follow.
- Have checks, replacement debit cards, and other bank information sent to your local branch and take the trip to pick it up.
- Check your credit report once a year
- View your accounts once a week so you can spot any suspicious activity
- Don’t give personal information out.
- Maintain careful records of banking and financial reports (hang onto bank stubs and other financial documents for at least one year)
What you need to do if your credit is stolen:
- Stay calm and be patient (easier said than done)
- Place a fraud alert on your credit reports and review them asap
- Contact any one of the three consumer reporting companies below to place a fraud alert on your credit report:
- TransUnion1-800-680-7289
- Equifax: 1-800-525-6285
- Experian: 1-888-EXPERIAN (397-3742)
-
Close any accounts you know, or believe, contain fraudulent activity
- File an ID theft complaint with the Federal Trade Commission (FTC)
- FTC Identity Theft Hotline: 1-877-ID-THEFT (438-4338); TTY: 1-866-653-4261
- File a report with the local police
After taking these steps and correcting any problems, victims of credit fraud should continue to:
- Monitor financial records for several months after they discover the crime.
- Review credit reports once every three months in the first year of the theft, and once a year thereafter.
- Stay alert for other signs of identity theft
The consequences for criminals committing credit fraud are high, but criminals are often not caught, due to the fact that identity theft is often a faceless crime and can be very difficult to trace.
- Credit Fraud includes: identification fraud, credit card fraud, computer fraud, mail fraud, wire fraud, or financial institution fraud.
- Each of these felonies can result in prison sentences as high as 30 years’, fines, and criminal forfeiture.
For more information:
Better Business Bureau
Identity Theft Resource Center
Call for Action
US Department of Justice: S.C.A.M.
List of common scams
Identity Theft and Assumption Deterrence Act
The consequences for criminals committing credit fraud are high, but criminals are often not caught, due to the fact that identity theft is often a faceless crime and can be very difficult to trace.
Why aren’t banks secure?
The whole idea behind keeping your money in a bank vs. in your mattress is that a bank is secure. The banks are FDIC insured for accounts up to $100,000.00 which is higher now due to the economy. The issue these days is that we are getting our identity stolen right at the bank. Here is an example below of one who had over 200 accounts opened up under his name and a huge amount of cash…yes I said cash taken out of his account without having to verify a valid ID.
What is the answer? Do we keep our money in the mattress? Do we make the courts do something? Tell me your thoughts…..
http://o8justiceforall.wordpress.com/
Banks are not necissarily “not secure” its that as we are shifting into a technology based existence and not as careful with our information! Peraonally I try and use cash over my debit card, checks or credit. That way my inofrmation has less oppurtunities to be stolen. Also I check my accounts regularly, I just switched to doing online transactions to a different account then my regular account. In the event that something did happen I would be somewhat protected. Really you just need to be aware of your information and cautious. follow up on thigs that seem suspicious. The thing to remember many people have their identity stolen, but many don’t.
[...] did a series on identity theft last year. Take a look, it’s still got some great advice. Our sister site, The Beehive, [...]