To Catch a Thief

Identity thieves rob more than 500,000 Americans every year. The Minnesota Attorney General’s office currently has reports of more than 3,000 victims of identity theft statewide, some reporting multiple types of theft, ranging from credit-card and bank fraud to employment- and loan-related fraud.

Many of us think of identity theft in terms of sophisticated phishing schemes on the Internet, where thieves design authentic-looking e-mails to trick you into providing account information to a phony Web site. However, most identity theft is much more mundane.

For instance, thieves steal wallets and purses containing identification, credit, and bank cards. They may steal mail or complete a change of address form to divert mail to another location. Rummaging through trash for personal data or obtaining business or personal records from your workplace are other ways in which thieves can obtain your information. Then—bingo—they’re able to run up big charges on your account before you even know it.

If they obtain your Social Security number—your “jackpot” ID number—they can open new credit-card accounts or even a bank account in your name, write bad checks against the account, and forge counterfeit checks or debit cards. They can even buy themselves a new car by financing the purchase in your name.

Protect Yourself

{1} Guard your Social Security number; it’s the key to your credit report, bank accounts, and credit cards, and it’s a prime target for criminals. Never give out your Social Security number. Most often, even legitimate banking and credit-card institutions will only ask for the last four digits of your Social Security number.

{2} Carry only what you need. The less personal information you have with you, the better. And make a copy (both sides) of everything you carry in your wallet or purse. In the event of loss or theft, you’ll need the necessary information to move quickly to cancel cards, checks, and other documents.

{3} Cancel credit-card accounts you don’t use. Shred account statements and cut cards.

{4} Minimize the information you circulate in print. Don’t print personal information on checks, particularly your Social Security number. Nor is it a good idea to have your driver’s license number or phone number on your checks. Guard your PIN numbers and make sure you discard your mail properly. And buy a shredder!

{5} Don’t give out financial information, such as credit-card numbers or checking account numbers, whether it’s over the phone, by e-mail, or regular mail. If someone calls and asks for your financial information, ask for their phone number, then verify the validity of the request with a trusted source.  

{6} Keep an eye on your credit report. Periodically, contact the major credit-reporting companies to make sure the information in your file is correct. For a small fee, you can obtain a copy of your credit report at any time.

If You’re Victimized

Move fast! Call the police. Notify the Federal Trade Commission—call the FTC Identity Theft Hotline at 877-ID-THEFT. The State of Minnesota Attorney General’s Website, contains a wealth of information on how to protect your identity and report fraud.

Identity thieves get right to work once they’ve scored a hit. Recently, a 19-year-old Oakdale man reported that someone took his account number for a credit-union checking account, made counterfeit checks, and cashed at least 12 of them within a two-week period. Some friends of mine recently wrote a check as a donation to their children’s school. The person who collected the checks had them stolen from her car. Within days, the thief had made counterfeit checks and was writing checks against my friends’ account.

Notify the credit bureaus: Equifax, Experian, and Trans-Union. Ask that a fraud alert be placed on your file. Include a “victim’s statement” on your credit report asking that creditors call you before opening any new accounts or changing any of your personal information. Continue to review your credit reports periodically.

Once you’ve taken these initial steps, review all your checking, savings, home equity, investment, and credit-card accounts for suspicious activity. Watch your mail for statements for accounts you don’t have, and make sure all your normal statements are still being mailed to you.

If a thief has stolen your mail, contact your local postal inspector, and if you suspect someone is using your Social Security number, contact the Social Security Administration’s fraud hotline (800-269-0271). If you suspect someone is using your identity to get a driver’s license, contact the Minnesota Department of Motor Vehicles. Identity theft is one of the most serious crimes facing our financial services system—something that could, taken as a whole, weaken our entire credit and banking infrastructure. It’s up to everyone to guard the information that tells the system who is you.