Identity Theft
Identity theft is a criminal offense. It occurs when a person knowingly
transfers or uses, without lawful authority, a means of identification of another
person with the intent to commit or to aid or abet any unlawful activity that constitutes
a violation of federal law or that constitutes a felony under any applicable state
or local law.
- Identity Theft and Assumption Deterrence Act, 18 USC 1028[a][7]
In what many are calling America's fastest growing type of robbery,
crooks are working without the usual tools of the trade. Forget sawed-off shotguns
and ski masks: your name and social security number will do the trick, or that blank,
pre-approved credit application you tossed out with the coffee grounds. Even talking
on your phone or surfing the Internet can allow someone you may never meet to rob
you of the one thing you may have thought safe from attack: your identity.
Identity fraud is digging deep into consumers' pockets — more than $48 billion
was lost in the past year by financial institutions and businesses, and individuals
lost an estimated $5 billion.
The number of ID theft victims and their total losses are probably much higher than
reported. It's hard to pin down, because law enforcement agencies may classify ID
theft differently--it can involve credit card fraud, Internet fraud, or mail theft,
among other crimes.
The perpetrator may use a variety of tactics to obtain your personal information
and drain your finances: posing as a loan officer and ordering your credit report
(which lists lines of credit); "shoulder surfing" at the ATM or phone booth to get
your PIN code; "dumpster diving" in trash bins behind businesses or apartments for
unshredded credit applications, canceled checks, bank records or any documents containing
personal information; or, stealing mail right out of your own mailbox.
It may take months before you realize you're a victim of identity theft. But, when
you get turned down for credit, a car loan, or a mortgage on your dream house because
you've got a bad credit rating and you know you've paid your bills, beware: The
ID thief may have struck again.
Do you carry your social security number in your wallet? Consider this: That nine-digit
code gives crooks access to your medical, financial, credit, and educational records.
There are no legal restrictions on private company use of social security numbers.
In fact, a database of names with associated social security numbers was recently
found published on the Internet. What's worse, some states still use your social
security number for your driver's license number -- a policy that is, fortunately,
changing.
If you think you're safe because you canceled your credit cards and put a "stop"
on your checking account after your wallet was stolen, think again. Once identity
thieves have your information, they may open new accounts or lines of credit —
under your name, for their use.
Last year alone, an estimated ten million Americans were victims of identity theft.
The culprits may be employees (or patrons) of mailrooms, airlines, hotels, or personnel
offices — anyone who has access to financial information. Thieves may use
your credit card or encoding equipment (sold by business-supply companies) and blank
cards with magnetic strips to record your account number onto a counterfeit card
with a different name. Crooks sometimes seek jobs that will give them access to
financial information, or they may bribe employees in such positions to supply them
with the data they want.
Need a phony ID to "prove" you're the person whose name is on the credit card? Try
surfing the Web. There are scores of sites with instructions on how to create a
"new you." If you've got your own computer, scanner, and color printer or copier,
you can create your own false IDs.
For more information on Identity Theft:
- More
tips to help you avoid identity theft.
- If you think you're a victim of identity theft, here's what you should do.
- View and print the Identity Theft brochure, Publication 280, in PDF format. Or,
view and print a
text-only version of the Identity Theft brochure.
- Learn
about how identity thieves can steal your name and your money.
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