How
To Prevent Being a Victim Identity Theft
.by
Brad Fields
Brad Fields is a top financial
consultant with Opportunities Abroad who have dedicated
several years to intensely reviewing top international tax havens, privacy
tactics,
luxurious lifestyle destinations, offshore banking laws, overseas real
estate bargains -
practically every international opportunity available. Brad Fields says,
" Whether you
want to open an offshore bank account, start an international business,
develop a
bulletproof strategy to protect your rapidly-vanishing privacy, or fulfill
any other dream
you may have, the information is readily at Opportunities Abroad." |
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Additional
Resources
Tax Havens 
Investment Resources
Opportunities Abroad Site
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| You've probably heard of identity theft
by now. After all, there's been a lot of news about the recent high-profile
arrests of two Brooklyn men who allegedly obtained credit reports and other
information about some of America's wealthiest individuals to access their
brokerage, credit card, and bank accounts. That even the rich are
vulnerable demonstrates that no one is immune to identity theft.
But what is it? Generally speaking,
identity theft is a whole range of crimes that runs from stealing credit
card numbers to concocting phony personas, complete with credit reports
and college degrees. |
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For example, the officials who arrested
the aforementioned suspects found a copy of Forbes' annual report on "the
400 richest people in America" in their possession. Written into
the margins were many of the wealthy persons' home addresses, bank account
numbers, account balances and even their mothers' maiden names, which are
often used as account passwords. And no one suspected what was happening
until the US brokerage firm Merrill Lynch received an e-mail requesting
a US$10 million transfer from the account of Thomas Siebel (founder of
the software firm Siebel Systems) into an account in Australia. Since
the transfer would have caused an overdraft in Mr. Siebel's Merrill Lynch
account, the brokerage contacted him and discovered that he'd never made
the request. Alerted, Merrill Lynch subsequently discovered similar requests
on the accounts of other well-known clients and informed the authorities.
This incident is probably the biggest one
yet in a growing epidemic of identity theft (a US federal crime since 1998).
The Federal Trade Commission, charged with helping consumers whose identities
have been misappropriated, originally received 100 to 200 calls a week
when it opened its toll-free help lines in November 1999. Now it gets as
many as 2,000 calls a week.
And according to a survey conducted by
the California Public Interest Research Group and the Privacy Rights Clearinghouse
in May 2000, American victims of identity theft spend an average of US$808
and 175 hours actively working to clean up their credit reports and other
complications caused by this kind of crime.
The scariest thing about identity theft
is that it can happen without your knowledge, it can continue for months
before you (or anyone) finds out, and it can cost you an enormous amount
of money, time, and stress to correct once you realize there's a problem.
All this, and there's a good chance you'll never find out who ruined your
good name, nor will you be able to guarantee whether or not it will ever
happen again.
What Is Identity
Theft
Identity theft happens when a criminal
uses your name, Social Security number (or its local equivalent), credit
card number, and/or other pieces of your personal information to impersonate
you.
Common frauds stemming from ID theft include:
| Opening a new credit card account by using
your name, date of birth, and Social Security number. When they use their
new credit card (and don't pay the past due charges) this account is now
linked to your credit report and has an undesirable effect on your credit
standings.
Opening a bank account in your name and
writing bad checks on it.
Changing the mailing address for your existing
credit card (usually with a phone call), and then making purchases on your
account before you realize you're not receiving your credit card bills
anymore.
Creating counterfeit checks or debit cards
to drain your existing bank accounts.
Establishing a cellular phone service in
your name, and stiffing you with the bill.
Filing for bankruptcy under your name to
avoid paying debts (or to avoid eviction), thus ruining your credit rating.
Buying cars by taking out auto loans in
your name.
Attributing earned income to your name
for tax purposes, thus saddling you with an undeserved tax burden derived
from income you never actually enjoyed. |
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How Identity Thieves
Get What They Need To Hurt You
An identity thief can't do anything without
your personal information, so they try to get hold of as many of your name,
address, telephone number, social security number or equivalent (e.g. social
insurance number), driver's license number, bank account number(s), credit
card information, telephone calling card details, birth certificate, and
passport number as they can get.
This can be accomplished by one or more
of the following:
| Stealing wallets & purses containing
your identification and credit and bank cards.
Stealing mail, including bank and credit
card statements, telephone calling cards, tax information, and pre-approved
credit offers (don't ever throw these out without destroying them!)
Rummaging through your personal or business
trash.
Obtaining your credit report by posing
as a landlord, employer, or similar party.
Accessing your business or personnel records
at work.
Filling out a "change of address form"
to divert your mail to another location.
Stealing personal information from your
residence, either while breaking and entering or while visiting for what
appear to be legitimate reasons.
Stealing personal information you've shared
with unsecure websites on the Internet.
Hanging out around ATM's and noting card
numbers, PIN's, and other important information as you use the ATM.
Posing as telemarketers to solicit personal
information such as credit cards, or setting up fraudulent websites to
accomplish the same goals.
Buying your personal information from "inside"
sources such as list brokers.
Accessing Internet sites that allow customers
to buy forms to make false driver's licenses, birth certificates, student
IDs, concealed weapons permits, bartender cards and other types of identification
materials. In 2000, about 30% of the false ID documents seized by the Florida
Division of Alcoholic Beverages and Tobacco were obtained on the Internet,
up from about 1% in 1999. The figure could rise to 60% in 2001. |
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One thing you should note from the above
list is that "real- world" identity theft is still far more common than
Internet identity theft, but Internet theft is growing rapidly. Be
sure to pay attention to "traditional" vulnerabilities such as your mail
and garbage disposal as well, though. Most identity thieves are not
yet sophisticated enough to steal your online data, but almost anyone can
sift through your garbage or solicit you over the phone.
How You Can Stop
Identity Theft
Identity theft is a crime that cannot be
totally prevented, because there is always some measurable risk that your
personal information could somehow be misappropriated for fraudulent purposes.
However, you can reduce your risk by adopting the following security measures
into your daily routine:
| Carefully review all your financial statements,
utility bills, and phone bills. Report inaccuracies immediately to the
relevant authorities and follow up until you're certain that the entry
is corrected. Establishing a track record as a person who diligently pursues
errors could help you if fraudulent transactions appear on your statements
in the future.
Check your credit reports from the credit
agencies once a year. You should be watching for account numbers, addresses,
and similar information you don't recall submitting.
Store your vital paperwork and data in
secure locations. If you leave your personal papers lying around
where a casual visitor could see or steal them, you are asking for trouble.
All redundant financial paperwork should
be shredded and also burnt before you toss it into the trash. Use
a cross-cut shredder for best results.
Pay attention to your billing cycles and
follow up with creditors if your bills don't arrive. A missing credit card
bill could mean an identity thief has taken over your account and changed
your address.
Before disposal, wreck all used computer
diskettes with a magnet and a knife.
Don't carry ID in your wallet or purse
that you don't need. And try to minimize the number of credit cards, debit
cards, telephone calling cards, ID cards, and store cards that you use.
The less you have, the less there is to steal.
Never carry your Personal Identification
Numbers (PIN's) with your credit or debit cards. If they're stolen
or misplaced, a thief can get the cash out of your account so quickly that
you could face substantial losses before you report the loss and freeze
the account.
For extra security, try to change your
PIN's regularly and also try to memorize all important numbers, including
your Social Security number and similar data.
Be wary of nosy strangers while you're
using your card at ATM's, when writing cheques, or while giving personal
information over the phone.
When shopping, destroy credit card carbons
before leaving the store.
Purchase a secure mailbox that thieves
will have difficulty opening. Also consider using a maildrop with no connection
to your real address if you're very paranoid.
Unless you initiated the call, and therefore
know the identity of the individual answering the phone, don't give out
personal or financial details over the phone. If you are solicited
over the phone, ask for a callback number and try to verify the legitimacy
of the seller before doing business with a "cold caller."
Don't ever use your mother's maiden name
in financial matters. This is such a common identifier that an identity
thief could successfully impersonate you merely by providing this "confidential"
information.
Avoid providing no more information than
necessary when filling out Internet forms. For certain "required" fields,
enter false information if this would not constitute fraud. And never
give out credit card info unless the web page is secure. You can
identify secure pages because they start with https:// not http://.
Use PGP for sensitive emails. |
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I'm A Victim!
What Now?
If you have reason to believe that your
personal information has been used to commit frauds in your name, enact
the following steps immediately and keep a record of all your conversations
and
correspondence.
| Contact the fraud departments of the three
major credit bureaus. Inform them that you're an identity theft victim
and ensure that a "fraud alert" is placed on your file. You also
want to include a victim's statement asking that creditors telephone you
before opening any new accounts or making any changes to your existing
accounts.
Order copies of your credit reports from
the credit bureaus. If you make your request in writing, they must give
you a free copy if your report is inaccurate because of fraud. Look for
fraudulent accounts opened in your name or unauthorized changes made to
your existing accounts. Also, check the section that lists "inquiries."
Where "inquiries" appear from the company(ies) that opened the fraudulent
account(s), request that they be removed from your report.
After a few months, order new copies of
all your credit reports to verify that the bureaus have correctly completed
your instructions, and also to ensure no new fraudulent activity has occurred.
Contact your creditors about any accounts
that are fraudulent or have had fraudulent transactions made against them.
Speak with the security or fraud department of each creditor, and follow
up with a written letter. Notify credit card companies in writing because
this provides you with the most protection under the law.
Immediately close any existing accounts
you control that have been tampered with and open new ones with new PIN's
and/or passwords.
File a report with either your local police
or the local police in the area where the identity theft took place. The
police can be reluctant to cooperate with this request because it is virtually
impossible for them to build a case with identity theft, but be persistent.
Get notarized copies of the police report in case the bank, credit card
company or other creditors need proof of the crime. |
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For More Information
http://www.ftc.gov/bcp/conline/pubs/credit/idtheft.htm
http://www.usdoj.gov/criminal/fraud/idtheft.html
http://www.privacyrights.org/
Credit Rating Agencies
Equifax — www.equifax.com
Reports: 800-685-1111 or write:
P.O. Box 740241, Atlanta, GA 30374-0241
Fraud: 800-525-6285 and write:
P.O. Box 740241, Atlanta, GA 30374-0241
Experian — www.experian.com
Reports: 888-EXPERIAN (397-3742) or write:
P.O. Box 949, Allen TX 75013-0949
Fraud: 888-EXPERIAN (397-3742) and write:
P.O. Box 949, Allen TX 75013- 0949
Trans Union — www.tuc.com
Reports: 800-916-8800 or write:
P.O. Box 1000, Chester, PA 19022
Fraud: 800-680-7289 and write:
Fraud Victim Assistance Division,
P.O. Box 6790, Fullerton, CA 92634 |
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