IDENTITY THEFT

Identity theft refers to stealing and illegally using another person's identity information, including name, date of birth, Social Security number (SSN), address, telephone number, and bank and credit card numbers. Identity theft has become the fastest-growing financial crime in the United States and around the world. As Assistant U.S. Attorney Sean B. Hoar reported, in the United States, 94 percent of financial-crime arrests in 1996 and 1997 involved identity theft, and actual losses to individuals and financial institutions totaled $450 million in 1996 and $745 million in 1997. Over the same period, Master-Card stated that losses because of identity theft represented about 96 percent of its member banks' overall fraud losses ($407 million in 1997).

METHODS OF IDENTITY THEFT

There are many methods of identity theft, but the two most common ones are the physical theft of identification documents and information and computer-based, cyber-space theft. In addition, there are organized crime schemes aimed at stealing personal information.

Physical thefts might include pickpockets stealing purses or wallets for credit cards, driver's licenses, passports, and checkbooks. At automated teller machine (ATM) stations, thieves can peek over people's shoulders when they use credit or debit cards in an attempt to learn the personal identification number associated with the card. Thieves steal mail, garbage, and recycling looking for bank statements, credit card receipts, and other sources of personal information. Even family members have been known to assume the identity of another family member in order to commit financial fraud.

Contact information for three credit bureaus
Credit bureau	Website	Credit report	Fraud unit
Experian	www.experian.com	888-397-3742	888-397-3742
Equifax	www.equifax.com	800-685-1111	888-766-0008
TransUnion	www.transunion.com	800-888-4213	800-680-7289

On the Internet, thieves use high-tech skills to obtain people's usernames, passwords, credit card numbers, and other valuable information. At businesses and hospitals, employees may access their company networks to steal database files of customer and personnel records for criminal use. Organized crime schemes involve hiring hackers or bribing employees to steal valuable information from corporate databases.

PREVENTING IDENTITY THEFT

To avoid being the victim of identity theft, the following proactive measures should be taken:

Do not give out personal information except when absolutely necessary
Avoid having a SSN printed on a driver's license, a personal check, or membership cards
Refuse to give a SSN over the phone, in an e-mail, or as identification for store purchase and refund
Exercise caution when using credit or debit cards at ATM stations, stores, restaurants, and online stores; do not let others get access to such information
Carefully review monthly statements from credit card companies and banks for accuracy; report any problem to them immediately
Keep personal, financial, and medical records in secure places; shred old documents and mail such as preapproved credit card solicitations, credit card receipts, and bank statements before throwing them away
Do not place outgoing mail in unlocked mailboxes because a red flag up on the mailbox could attract thieves; promptly remove delivered mail from unlocked mailboxes

STEPS FOR VICTIMS TO TAKE

Victims of identity theft should take the following countermeasures:

Immediately report the identity theft to the local police, and keep a copy of the police report as evidence
Immediately call each of the three credit bureaus (see Table 1) and request credit reviews and a 90-Day Initial Security Alert or a 7-Year Fraud Victim Alert to prevent further damages
Work cooperatively with any creditors of accounts where fraud occurred

IDENTITY THEFT

METHODS OF IDENTITY THEFT

PREVENTING IDENTITY THEFT

STEPS FOR VICTIMS TO TAKE

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