Identity Theft: Dont Be A Victim!
Moments after stepping out of the taxi,
Rachel plunged through the entranceway of the hotel
lobby eager to put behind what had been a terribly
exhausting day. Flight delays due to weather had caused
her LAX-MDW-BWI trip to take nearly eleven hours to
complete. All she could think of was taking off her
shoes to relieve her aching feet and dipping them
into soothing, warm bath water.
The line at the front desk was mercifully
short. One clerk caught Rachel's attention and signaled
her forward she gave him her reservation information
and then dug out her American Express card for payment.
As he stepped away to verify its authenticity Rachel's
eyes surveyed the lobby. "They've updated everything
since I was last here", she thought. Her concentration,
clouded by fatigue, was now on the mission style tables,
chairs, and light fixtures, which had replaced the
heavy, wooden furniture previously occupying the lobby.
"Here is your card and room key, ma'am," the clerk
interrupted minutes later. Quickly, Rachel stuffed
her card back into her wallet, gathered her bags and
whisked away to her room.
Rachel was a victim of identity theft
that night, but did not know it at the time. Had she
kept a watchful eye on what her clerk was doing instead
of studying the lobby, she might have noticed him
switching cards on her. At the very least, she would
have seen that the card handed to her beneath her
room key was not her own.
Identity theft is an exploding problem
that has increased exponentially in this technological
age. Particularly since the early 1990s thieves have
been taking advantage of what we would consider every
day transactions: writing a check at the grocery store,
ordering merchandise via the internet, applying for
a credit card, using your cell phone, and more. Each
transaction requires you to share personal information:
your bank and credit card account numbers; your income,
your Social Security Number (SSN); and your name,
address, and phone numbers.
An identity thief will lift some piece
of your personal information and appropriate it without
your knowledge to commit fraud or theft. One of the
most common methods is when the identity thief uses
your personal information to open a credit card account
in your name.
The Federal Trade Commission is the
arm of the federal government tasked with overseeing
the problem of identity theft. A special hotline number
(1-877-IDTHEFT) was created for consumers to call
to place your information in a database which is accessible
with other law enforcement agencies and private entities,
including any companies about which you may complain.
Additionally, an ID Theft Affidavit a form you can
use to alert companies where a new account was opened
in your name can be filled out and given to the company.
This affidavit is available online
to consumers.
Identity thieves can get your personal
information in a number of ways:
* They steal wallets and purse containing
your i.d. and credit and bank cards.
* They steal your mail, including your
bank and credit card statements, pre-approved credit
offers, telephone calling cards and tax information.
* They complete a "change of address
form" to divert your mail to another location.
* They rummage through your trash, or
the trash of businesses, for personal data in a practice
known as "dumpster diving."
* They fraudulently obtain your credit
report by posing as a landlord, employer or someone
else who may have a legitimate need for and a legal
right to the information.
* They get your business or personnel
records at work.
* They find personal information in
your home.
* They use personal information you
share on the internet.
* They buy your personal information
from "inside" sources. For example, an identity thief
may pay a store employee for information about you
that appears on an application for goods, services
or credit.
Identity thieves will then take the
personal information they have obtained about you
and use it in a number of different ways:
* They will call your credit card issuer
and, pretending to be you, ask to change the mailing
address on your credit card account. The imposter
then runs up charges on your account. Because your
bills are being sent to the new address, it may take
some time before you realize that there is a problem.
* They open a new credit card account,
using your name, date of birth and SSN. When they
sue the credit card and don't pay the bills, the delinquent
account is reported on your credit report.
* They establish phone or wireless service
in your name.
* They open a bank account in your name
and write bad checks on that account.
* They file for bankruptcy under your
name to avoid paying debts they have incurred under
your name, or to avoid eviction.
* They counterfeit checks or debits
cards, and drain your bank account.
* They buy cars by taking out auto loans
in your name.
Fortunately for Rachel, American Express
covered her losses. Although she didn't find out about
the theft until she reached her home in California,
American Express suspended her account when a number
of suspicious charges appeared and she couldnt be
reached by them to verify the charges. Their fraud
department left a message on her phone answering machine
instructing her to call them and, when she did, Rachel
was notified that someone else was using her card.
When she explained that she had the card in her possession,
she checked her purse and found a card for someone
else instead.
Visa, MasterCard and American Express
absorb the cost of fraud as long as they are notified
by the consumer [certain restrictions may apply check
with your card issuer for specific details]. Had Rachel
used a debit card, the story might have been much
different. Unlike a credit card, the debit card takes
a direct hit on your bank account, meaning that you
will have to absorb the loss.
So, all is well with Rachel, right?
Sure, American Express overnighted a new card with
a new account number for Rachel to use on her next
trip, but the problem could very well have continued
and deepened had she not taken three more steps recommended
by the Federal Trade Commission:
First, contact the fraud departments
of each of the three major credit bureaus. Tell them
that you are a victim of identity theft. Request that
a "fraud alert" be placed in your file, as well as
a victim's statement asking that creditors call you
before opening any new accounts or changing your existing
accounts. This can help prevent an identity thief
from opening additional accounts in your name.
At the same time, order copies of your
credit reports from the credit bureaus. Credit bureaus
must give you a free copy of your report if your report
is inaccurate because of fraud, and you make that
request in writing. Review your reports carefully
to make sure no additional fraudulent accounts have
been opened in your name or unauthorized changes made
to your existing accounts.
Second, contact the creditors
for any accounts that have been tampered with or opened
fraudulently. Creditors can include credit card companies,
phone companies and other utilities, and banks and
other lenders.
Third, if possible, file a report
with your local police or the police in the community
where the identity theft took place. Get a copy of
the police report in case the bank, credit card company
or others need proof of the crime. Even if the police
are unable to catch the thief, the report can be helpful
when dealing with creditors.
In summation, identity theft is a problem
that is causing businesses and consumers billions
of dollars per year. As a result, higher interest
rates and an increase in the cost of goods and services
is passed on to consumers. So, do not be a victim
protect yourself from identity theft by remaining
alert especially when a third party is handling your
personal information.
Matthew Keegan is the owner of a successful
web design and marketing company based in North Carolina,
USA. He manages several sites including the Corporate
Flight Attendant Community at http://www
.corporateflyer.net and the Aviation Employment
Board at http://www
.aviationemploymentboard.net This article originally
appeared in the Summer 2002 issue of the Flight Attendant
News.
