Identity Theft

Identity theft occurs when someone uses your personally identifying information, like your name, Social Security Number, or credit card number without your permission to commit fraud or other crimes.

It is estimated that as many as 9 million Americans have their identities stolen each year. In fact, you or someone you know may have experienced some form of identity theft. Identity thieves may rent an apartment, obtain a credit card, or establish a telephone account in your name. You may not find out about the theft until you review your credit report or a credit card statement and notice changes you did not make or until you are contacted by a debt collector.

While some identity theft victims can resolve their problems quickly, other spend hundreds of dollars and valuable time repairing damage to their good name and credit record. In rare cases, they may even be arrested for crimes they did not commit.

How Do Thieves Steal an Identity?

Skilled identity thieves may use a variety of methods to get hold of your information, including:

Dumpster Diving: They rummage through trash looking for bills or other paper with your personal information on it.
Skimming: They steal credit/debit card numbers by using a special storage device when processing your card.
Phishing: They pretend to be financial institutions or companies and send spam or pop-up messages to get you to reveal your personal information.
Changing Your Address: They divert your billing statements to another location by completing a change of address form.
Stealing: They steal wallets and purses; mail, including bank and credit card statements; pre-approved credit offers; and new checks or tax information.
Pretexting: They use pretenses to obtain your personal information from financial institutions, telephone companies, and other sources.

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What Do Thieves Do With a Stolen Identity?

Credit Card Fraud:

They may open new credit card accounts in your name. When they use the cards and do not pay the bills, the delinquent accounts appear on your credit report.
They may change the billing address on your credit card so that you no longer receive bills, and then run up charges on your account. Because your bills are now sent to another address, it may be some time before you realize there is a problem.

Phone or Utility Fraud:

They may open a new phone or wireless account in your name or run up charges on your existing account.
They may use you name to get utility services like electricity, heating, or cable television.

Bank/Finance Fraud:

They may create counterfeit checks using your name or account number.
They may open a bank account in your name and write bad checks.
They may clone your ATM or debit card and make electronic withdrawals in your name thereby draining your accounts.
They make take out a loan in your name.

Government Documents Fraud:

They may get a driver's license or official ID card issued in your name, but with their picture.
They may use your name and Social Security Number to get government benefits.
They may file a fraudulent tax return using your information.

Other Fraud:

They may give your personal information to police during an arrest. If they do not show up for their court date, an arrest warrant is issued in your name.

What Should You Do if Your Identity is Stolen?

File a police report with the Watauga Police Department and keep a copy for yourself to make it easier to prove your case to creditors and merchants. It may also help you build a lawsuit if your have to sue to recover losses or clear your name later. In Texas, you can report the incident in the jurisdiction where you reside.

File a complaint with the Federal Trade Commission at (866) 653-4261. Download a copy of the ID Theft Affidavit here.

For fraud involving mail, file a complaint with postal officials here.

Alert credit-reporting agencies by using the FTC ID Theft Affidavit mentioned above to help you do this. Visit the links listed below to get addresses and instructions. Ask to have your account flagged with a fraud alert which asks merchants not to grant new credit without your explicit approval. Keep copies of all correspondence.

Notify banks, utilities and creditors. Close accounts that have been used by thieves. Choose new passwords and PINs for all of your accounts and do not use your mother's maiden name as a password.

Order your credit report each year. Get credit reports from all three credit bureaus and study them closely. Some victims say that it took years to clear their credit files.

The best way to find out if your identity has been stolen is to monitor your accounts and bank statements each month and check your credit report on a regular basis.

Credit reports contain important information about you, including what accounts you have and how you pay your bills. The law requires each of the major nationwide consumer reporting agencies to provide you with a free copy of your credit report, at your request, every 12 months. To order your free annual report, visit www.annualcreditreport.com.

Once you get your reports, read them carefully. Look for inquiries from companies you have not contacted, accounts you did not open, and debts on your accounts that you cannot explain. Check that information, such as your Social Security number, address, name and employers is correct. If you find fraudulent or inaccurate information, get it removed.

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