University of Wisconsin - Extension

Imagine someone taking your credit card account number, Social Security number or driver¿s license number and opening new accounts, charging purchases, getting a car loan or cellular phone service, even using your employment record to secure a job, using your name. Even more important than the money taken, the crime of identity theft can damage your credit rating and your reputation. Victims of identity theft often have trouble getting new credit cards or loans because of the damage to their credit ratings.

"A good credit rating is one of your most valuable consumer assets," says Karen Goebel, UW-Madison/Extension family and consumer economics specialist. "Identity theft can threaten not only your current financial security, but future plans as well."

Identity theft affected more than 600,000 consumers last year. Last month, the Federal Trade Commission reported that identity theft accounted for 42 percent of all consumer complaints it received in 2001. New technologies that make life easier for the consumer are also opening new doors to this crime.

While you may typically think of guarding against traditional theft such as pick pocketing, according to Goebel, identity thieves have a variety of other methods for obtaining your personal information.

The most difficult to guard against are opportunities for ¿insider ¿ access through personnel offices, hospitals, hotels, airlines and mailrooms that handle your personal documents and records. Databases that compile personal information are proliferating on the Internet.

Identity thieves may also find unshredded loan and credit information in the trash at homes or businesses. They may gain access to your credit report by posing as a landlord or employer. They may steal mail from your box at home, using information on monthly credit card and bank statements, or falsify a change-of-address form to divert your mail. They may be "shoulder surfing" or looking over your shoulder while you use a phone or ATM machine to obtain your personal identifying numbers.

Consumers who are victimized by identity theft generally find out about it only when the bills arrive¿for a credit card account you never opened, your credit history report may include debts you never knew you had, you see charges on your accounts you didn't sign for, didn't authorize and don't know anything about. According to the Identity Theft Resource Center, a victim of identity fraud spends on average 175 hours and $808 trying to clear his or her name.

A number of major creditors and the three major credit reporting bureaus (Experian, Equifax, and TransUnion) have joined with the Federal Trade Commission in posting one standardized form, the ID Theft Affidavit ( http://www.consumer.gov/idtheft/affidavit.htm ). The form was created to simplify the process for reporting fraudulent activity on your credit history. The form can be used to report identity theft to all three major credit card reporting agencies as well as to banks, retailers, and other financial institutions. Prior to the development of this form, victims of identity theft had to spend innumerable hours filling out separate forms for each fraudulent account opened. For assistance, call the ID Theft Clearinghouse at 1-877-ID-THEFT (1-877-438-4338).

"Be assertive about security when you are giving out private identifying information," says Goebel. "Be especially protective of your Social Security number. It could provide someone access to your financial, medical, educational and credit records."

According to the Federal Consumer Information Center, your social security number should only be required by an employer, government agency, lender or credit bureau. Many businesses will request it, but it is not always required. Insist on using an alternative identification number.

Consumers can take other steps to protect themselves from identity theft, Goebel says. Among her recommendations:

• To thwart identity thieves who may pick through your trash to capture personal information, shred your charge receipts, copies of pre-approved credit applications, insurance forms, bank checks and statements, expired credit cards, and credit offers you get in the mail.
• Check credit card and bank statements as soon as they arrive to make sure no one else is using your accounts. If a statement doesn¿t arrive on time, or you find unauthorized transactions on your accounts, contact the financial institution immediately.
• Don't print personal information such as your Social Security number, date of birth or driver¿s license number on your checks.
• Cancel and destroy unnecessary or inactive credit cards. Close these accounts and get written verification from the company.
• Don't carry unnecessary identification, such as a Social Security card, birth certificate or passport.
• Don't leave mail to be picked up from your home mailbox. Drop it in the nearest drop box, or take it directly to the post office. Pick up new checks at the bank rather than having them mailed to you.
• Do not give out your credit card number over the phone unless you initiated the transaction and made the call yourself. Only share your credit card or other personal information when you're buying from a company you know and trust.
• Know the businesses you deal with. Avoid any company that doesn't clearly state its name, physical address and telephone number. A Web site alone or a mailbox drop should raise suspicions.
• Check your credit reports from all three credit bureaus at least once a year, to make sure no one else has been using your credit.
• When given the option, opt out of having your personal information shared between organizations. You can also opt out of receiving pre-approved credit card offers by calling 1-888-5-OPTOUT (1-888-567-8688), a service of the major credit bureaus.

If you are a victim of identity theft, you can take several steps to reduce the damage and take control of the situation.

• Contact the three major credit reporting organizations to request that a "fraud alert" be placed on your name and social security number and that no new credit be granted without your approval. The alert means any company that checks your credit knows your information was stolen. The credit bureaus to contact are: Equifax at 1-800-525-6285, Experian at 1-888-397-3742 and Trans Union at 1-800-680-7289.
• Call and cancel your credit cards immediately. Goebel recommends making a photocopy of both sides of each license, credit card, etc. in your wallet and the account and phone numbers needed to call and cancel. Keep these copies at home where you can find them easily.
• File a report with local police or the police where the theft took place. Get a copy of the report in case the bank or insurance company needs proof of the crime. Identity theft is a Class D felony in Wisconsin.
• Notify your bank and cancel all accounts involved. For any accounts that have been fraudulently accessed or opened, contact the security department of the creditor or financial institution and close the accounts. Put passwords on any new accounts you open (avoid using your Social Security number or mother¿s maiden name). If an ATM or debit card is stolen, the amount you can be held responsible for may depend on how quickly you report the loss.
• Contact your utilities, phone company and cell phone provider. Tell them that someone may be trying to get new service using your identification.
• Report your missing driver's license number to the Department of Motor Vehicles.
• Change the locks on your home and car if your keys were taken.
• Monitor future credit card statements for new activity.

For more information, contact the Wisconsin Consumer Protection Division at 800-422-7128 or online ( http://datcp.state.wi.us/core/consumerinfo/ ). Information is also available at the Privacy Rights Clearinghouse ( www.privacyrights.org ).